Production Cost Modeling to Support Product Family Design Optimization

2003 ◽  
Author(s):  
Jaeil Park ◽  
Timothy W. Simpson
Keyword(s):  
Production Cost ◽  
Cost Model ◽  
Product Family ◽  
Optimization Methods ◽  
Production Costs ◽  
Product Platform ◽  
Product Family Design ◽  
The Family ◽  
The Individual ◽  
Decision Based Design

Product family design involves carefully balancing the commonality of the product platform with the distinctiveness of the individual products in the family. While a variety of optimization methods have been developed to help designers determine the best design variable settings for the product platform and individual products within the family, production costs are thought to be an important criterion to choose the best platform among candidate platform designs. Thus, it is prerequisite to have an appropriate production cost model to be able to estimate the production costs incurred by having common and variant components within a product family. In this paper, we propose a production cost model based on a production cost framework associated with the manufacturing activities. The production cost model can be easily integrated within optimization frameworks to support a Decision-Based Design approach for product family design. As an example, the production cost model is utilized to estimate the production costs of a family of cordless power screwdrivers.

Development of a Production Cost Estimation Framework for Product Family Design

2004 ◽  
Author(s):  
Jaeil Park ◽  
Timothy W. Simpson
Keyword(s):  
Cost Estimation ◽  
Production Cost ◽  
Economies Of Scale ◽  
Product Family ◽  
Production Costs ◽  
Main Task ◽  
Primary Concern ◽  
Product Family Design ◽  
Design Variables ◽  
The Family

The main task of a product family designer is to decide the right components/design variables to share among products to maintain economies of scale with minimum sacrifice in the performance of each product in the family. The decisions are usually based on several criteria, but production cost is of primary concern. Estimating the production cost of a family of products involves estimating the production cost of each product in the family including the cost effects of common and variant components/design variables in the family. In this paper, we introduce a production cost estimation framework for product family design based on Activity-Based Costing (ABC), which is composed of three stages: (1) allocation, (2) estimation, and (3) analysis. In the allocation stage, the production activities that are necessary to produce all of the products in the family are identified and modeled with an activity table, a resource table, and an activity flow. To allocate the activities to products, a product family structure is represented by a hierarchical classification of the items that form the product family. In the estimation stage, production costs are estimated by converting the production activities to costs using key cost drivers that consume main resources. In the analysis stage, components/design variables for product family design are investigated with resource sharing methods through activity analysis. As an example, the proposed framework is applied to estimate the production cost of a family of cordless power screwdrivers.

Modular Platform-Based Product Family Design

2000 ◽  
Author(s):  
Javier P. Gonzalez-Zugasti ◽  
Kevin N. Otto
Keyword(s):  
Product Family ◽  
Product Platform ◽  
Product Family Design ◽  
Optimum Degree ◽  
Multiple Products ◽  
The Family ◽  
Subsystem Design ◽  
The Common ◽  
Modular Platform ◽  
The Individual

Abstract In this paper we present a method for designing families of products built onto modular platforms. A product platform is the set of components and subsystems shared across multiple products offered by a firm. A modular platform is one that allows for swapping of modules to configure multiple products in a family. The problem of designing a family of products based on such a platform is formulated as an optimization exercise, from which an implementation is derived. The method allows for the design of the modules that are shared across multiple members of the family, or the platform, as well as the portions of the products that are individually designed, or the variants. The result is a candidate design for the product family: both the combination of which modules should be shared and across which of the products, and the desired settings for the shared modules and the individual portions of each variant. The procedure is illustrated by an example of the telecommunications subsystem design for a set of spacecraft. The optimum degree of commonality for the set of products is found, as well as optimum settings for the common modules.

A Cost Model for Optimal Design of Hierarchic Product Platform under Coupled Architecture

2012 ◽  
Vol 452-453 ◽  
pp. 516-520
Author(s):  
Yan Ling Cai ◽  
Zhen Hua Cui
Keyword(s):  
Optimal Design ◽  
Cost Model ◽  
Product Family ◽  
Product Platform ◽  
Product Family Design ◽  
Flexible Design ◽  
Platform Design ◽  
Cost Drivers ◽  
Difficult Decision

Product platform design is essentially a difficult decision to make, thus a hierarchic platform has been proposed to solve the inherent tradeoff for optimization. However, architecture coupling adds on complexity of the platform design. This paper proposes an improved cost model for the optimal design of platform design in the hierarchic manner with the consideration of the architecture coupling. This cost model uniquely treats the architecture couplings and their decoupling interfaces as latent cost drivers to enable the flexible design of product platform and its family. As a support, the underlying tradeoff mechanism of platform-based product family design is also analyzed in this paper.

An Activity-Based Costing Method for Product Family Design in the Early Stages of Development

2005 ◽  
Author(s):  
Jaeil Park ◽  
Timothy W. Simpson
Keyword(s):  
Cost Estimation ◽  
Production Cost ◽  
Product Family ◽  
Cost Effective ◽  
Production Costs ◽  
Activity Based Costing ◽  
Product Family Design ◽  
Product Families ◽  
Product Platforms ◽  
Activity Costs

As the marketplace is changing so rapidly, it becomes a key issue for companies to best meet customers’ diverse demands by providing a variety of products in a cost-effective and timely manner. In the meantime, an increasing variety of capability and functionality of products has made it more difficult for companies that develop only one product at a time to maintain competitive production costs and reclaim market share. By designing a product family based on a robust product platform, overall production cost can be more competitive than competitors selling one product at a time while delivering highly differentiated products. In order to design cost-effective product families and product platforms, we are developing a production cost estimation framework in which relevant costs are collected, estimated, and analyzed. Since the framework is quite broad, this paper is dedicated to refining the estimation framework in a practical way by developing an activity-based costing (ABC) system in which activity costs are mapped to individual parts in the product family, which is called cost modularization, and the activity costs affected by product family design decisions are reconstructed to make the costs relevant to these decisions. A case study involving a family of power tools is used to demonstrate the proposed use of the ABC system.

scholarly journals The Moderate Operation Scales of Apples Based on Output, Profit, and Unit Production Costs in the Shaanxi Province of China

Land ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 25
Author(s):  
Congying Zhang ◽  
Qian Chang ◽  
Liqun Shao ◽  
Xuexi Huo
Keyword(s):  
Production Cost ◽  
Cost Model ◽  
Unit Cost ◽  
Production Costs ◽  
Shaanxi Province ◽  
Profit Model ◽  
Unit Production Cost ◽  
Net Profit ◽  
Apple Production ◽  
Moderate Scale

In the Shaanxi province, small and scattered plots impede an increase in the efficiency of apple production. Developing a moderate operation scale is a proper tool to solve inefficiencies in apple production, as it enables improving the factor allocation efficiency, resulting in higher yields, higher profit, or lower production costs. However, the moderate operation scales, based on output, profit, and production costs, may be different. This paper aimed to evaluate the moderate operation scale of apples from three perspectives of increasing yields and profits and reducing unit production cost. The study was based on survey data collected from 661 randomly selected apple farmers in eight counties of the Shaanxi province, China. The collected data were analyzed quantitatively by the input-output model, the net profit model, and unit production cost model. The findings show that: (1) The moderate operation scale oriented to increasing apple yields in the Shaanxi province should be 0.87–1.53 ha. (2) The moderate operation scale oriented to increasing the net profit of farmers in the Shaanxi province should be over 1.53 ha. (3) The moderate operation scale oriented to reducing the unit cost of apple production in the Shaanxi province should be 0.20–0.53 ha. The study provides evidence that policymakers should grasp the balance point and find the intersection of the operation scale based on output, profit, and unit production cost when guiding apple growers to carry out the moderate scale. We propose that 0.87–1.53 ha may be a suitable operation scale for apple production in the Shaanxi province at the current stage.

A Product Dissection-Based Methodology to Benchmark Product Family Design Alternatives

2009 ◽  
Vol 131 (4) ◽  
Author(s):  
Henri J. Thevenot ◽  
Timothy W. Simpson
Keyword(s):  
Product Family ◽  
Cost Savings ◽  
Production Costs ◽  
Manufacturing Cost ◽  
Successful Implementation ◽  
Product Family Design ◽  
Potential Cost ◽  
Product Families ◽  
Product Platforms ◽  
Design Alternatives

Today’s companies are pressured to develop platform-based product families to increase variety, while keeping production costs low. Determining why a platform works, and alternatively why it does not, is an important step in the successful implementation of product families and product platforms in any industry. Internal and competitive benchmarking is essential to obtain knowledge of how successful product families are implemented, thus avoiding potential pitfalls of a poor product platform design strategy. While the two fields of product family design and benchmarking have been growing rapidly lately, we have found few tools that combine the two for product family benchmarking. To address this emerging need, we introduce the product family benchmarking method (PFbenchmark) to assess product family design alternatives (PFDAs) based on commonality/variety tradeoff and cost analysis. The proposed method is based on product family dissection, and utilizes the Comprehensive Metric for Commonality developed in previous work to assess the level of commonality and variety in each PFDA, as well as the corresponding manufacturing cost. The method compares not only (1) existing PFDAs but also (2) the potential cost savings and commonality/variety improvement after redesign using two plots—the commonality/variety plot and the cost plot—enabling more effective comparisons across PFDAs. An example of benchmarking of two families of valves is presented to demonstrate the proposed method.

Incorporating Security Considerations Into Optimal Product Architecture and Component Sharing Decision in Product Family Design

2010 ◽  
Author(s):  
Alvaro J. Rojas Arciniegas ◽  
Harrison M. Kim
Keyword(s):  
A Priori ◽  
Product Family ◽  
Third Party ◽  
Product Architecture ◽  
Decision Making Process ◽  
Sensitive Information ◽  
Product Family Design ◽  
Multiple Factors ◽  
Common Structure ◽  
The Family

Multiple factors affect the decisions of selecting the appropriate components to share in product family design. Some of the challenges that the designers face are maintaining uniqueness and the desired performance in each variant while taking advantage of a common structure. In this paper, the sharing decision making process is analyzed for the case when a firm knows a priori that some of the components contain sensitive information that could be exposed to the user, third-party manufacturers, or undesired agents; thence, it is important to enclose it and protect it. Two important aspects to consider are defining the architecture of the product while protecting the sensitive information. This paper proposes tools to help the designers to identify components that are candidates for sharing among the family and finds the most desirable component arrangement that facilitates sharing while protecting the sensitive information that has been previously identified. The proposed framework is applied to three printers in which the architecture used for the ink cartridges and printheads are significantly different. Third-party manufacturers and remanufacturers offer their own alternatives for these subsystems (ink cartridges and printheads) since the customer for printer supplies is always looking for a cheaper alternative; meanwhile, the OEMs attempt to secure their products and retain their customers with original supplies. Having identified the sensitive components for each printer, the optimal clustering strategy is found, as well as the set of components that are candidates for sharing, according to their connectivity and the security considerations.

Adaptable Product Platform-Based Product Family Design of Crane

2013 ◽  
Vol 475-476 ◽  
pp. 1402-1405
Author(s):  
Xian Fu Cheng ◽  
Qi Hang Zhu
Keyword(s):  
Sensitivity Analysis ◽  
Design Method ◽  
Product Family ◽  
Design Parameters ◽  
Design Matrix ◽  
Product Platform ◽  
Bridge Crane ◽  
Functional Requirements ◽  
Product Family Design ◽  
Design Relation

A new design method for product family was presented based on adaptable product platform. Firstly, customer demands were analyzed for bridge crane. Secondly, axiomatic design was utilized as framework to zigzaging mapping between functional requirements and design parameters, and design matrix was established. Then the sensitivity analysis among design parameters and between design parameters and functional requirements was done. The design relation matrix was established and relation degree among design parameters was calculated. Based on above analysis, the platform parameters were identified.

A Variation-Based Methodology for Product Family Design

2000 ◽  
Author(s):  
Raviraj U. Nayak ◽  
Wei Chen ◽  
Timothy W. Simpson
Keyword(s):  
Product Family ◽  
Product Platform ◽  
Functional Requirements ◽  
Small Deviations ◽  
Second Stage ◽  
Performance Requirements ◽  
Input Design ◽  
Design Variables ◽  
The Family ◽  
The Common

Abstract In recent years, considerable research has been directed towards the development of methods for designing families of products. In this paper, we present a Variation-Based Platform Design Methodology (VBPDM), which aims to satisfy a range of performance requirements using the smallest variation of the product designs in the family. In the first stage of the VBPDM, the common product platform around which the product family is to be developed is identified. A ranged set of solutions is found, represented by the mean and standard deviation of the input design variables, to meet a range of the different performance requirements for the product family. During this first stage, a compromise Decision Support Problem (DSP) is used to optimize the commonality goal that seeks to minimize the deviation of the input design variables, while satisfying the range of performance requirements. Those design variables that show small deviations are held constant to form the product platform. In the second stage of the VBPDM, each individual product is designed around the common platform such that the functional requirements of the product are best satisfied. As an example, the proposed method is used to develop a family of universal electric motors designed to meet a range of torque requirements. The results are compared against previous work.

Assessing and Improving Commonality and Diversity Within a Product Family

2006 ◽  
Author(s):  
Fabrice Alizon ◽  
Steven B. Shooter ◽  
Timothy W. Simpson
Keyword(s):  
Case Studies ◽  
Product Differentiation ◽  
Diversity Index ◽  
Product Family ◽  
Global Market ◽  
Differentiated Products ◽  
Product Platform ◽  
Depth Analysis ◽  
The Family ◽  
Single Use

At a time when product differentiation is a major indicator of success in the global market, each company is looking to offer competitive and highly differentiated products. This differentiation issue is restricted by the design of platform-based products that share modules and/or components. It is not easy to differentiate products in a market that is often overwhelmed by numerous options. A platform-based approach can be risky because competition in the global market can become an internal competition among similar products within the family if there is not enough differentiation in the family. Thus, the goal for the product platform is to share elements for common functions and to differentiate each product in the family by satisfying different targeted needs. To assess commonality in the family, numerous indices have been proposed in the literature. Nevertheless, existing indices focus on commonality and reflect an increase in value when commonality increases but do not positively reflect an increase in the value as a result of diversity; hence, the Commonality versus Diversity Index (CDI) is introduced in this paper to assess the commonality and diversity within a family of products or across families. The CDI has variable levels of depth analysis to help designers design or improve the product family. Two case studies using single-use cameras and power tool families highlight the usefulness of this new index.

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