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Functional Components give you a degree of flexibility which is not possible with conventional 3D tools. Parametric modeling allows complex elements to be edited easily without the need to be manually rebuilt. The Functional Components enablement in MicroStation allows for you to experience true 3-D parametric design for advanced design modeling, leveraging both 2D and 3D constraints to accurately capture and model design intent. The CONNECT Edition introduces a new smart and comprehensive workflow that is comprised of Parametric Cells and Item Types for creating intelligent and reusable content, ultimately minimizing the need for re-modeling. Users can now create smart parametric models that can be driven by variables and placed as parametric cells, whose variation can be selected at placement or changed afterwards.
You can read more information about Functional Components including how to create these parametric cells in the MicroStation online help.
Additional wiki articles introducing Parametric Cells in MicroStation
1. 2D Parametric Steel Section - Basic
2. Parametric Solids - Advanced