A Systematic Method for Designing Profitable Product Families

2003 ◽  
Author(s):  
Srinivas Nidamarthi ◽  
Gu¨nther Mechler ◽  
Harsh Karandikar
Keyword(s):  
Product Family ◽  
Minimum Cost ◽  
Profit Margin ◽  
Digital Cameras ◽  
Customer Choice ◽  
Systematic Method ◽  
Product Families ◽  
Design Elements ◽  
Wide Range ◽  
A Company

Every company has the business objectives of maximizing customer choice as well as its profitability. Typically, companies address maximum customer choice through a large spectrum of variants in their products to satisfy varying customer needs. For example, a camera manufacturer may wish to offer various choices such as fixed focus, auto-focus, variable zoom, different zoom ranges, SLR, APS, and digital cameras, and in different combinations, to satisfy customers with different demands (including the price that they wish to pay). The business goal, therefore, is to design a product family that meets a wide range of customer choices but at a minimum cost so as to maximize the profit margin. These two objectives, choice and profit margin, are not as contradictory as they seem. In this paper, we show that by using a set of systematic methods a company can identify the essential design elements of a profitable product family. We have successfully applied this method in a number of product families ranging from airhandling fans to robot controllers, and from mass-produced products to project based customized products.

scholarly journals Design of Personalized Devices—The Tradeoff between Individual Value and Personalization Workload

2020 ◽  
Vol 11 (1) ◽  
pp. 241
Author(s):  
Juliane Kuhl ◽  
Andreas Ding ◽  
Ngoc Tuan Ngo ◽  
Andres Braschkat ◽  
Jens Fiehler ◽  
...  
Keyword(s):  
Customer Value ◽  
Early Stage ◽  
Treatment Success ◽  
Product Family ◽  
Flow Diverter ◽  
New Method ◽  
Product Families ◽  
Wide Range ◽  
The Individual ◽  
Individual Value

Personalized medical devices adapted to the anatomy of the individual promise greater treatment success for patients, thus increasing the individual value of the product. In order to cater to individual adaptations, however, medical device companies need to be able to handle a wide range of internal processes and components. These are here referred to collectively as the personalization workload. Consequently, support is required in order to evaluate how best to target product personalization. Since the approaches presented in the literature are not able to sufficiently meet this demand, this paper introduces a new method that can be used to define an appropriate variety level for a product family taking into account standardized, variant, and personalized attributes. The new method enables the identification and evaluation of personalizable attributes within an existing product family. The method is based on established steps and tools from the field of variant-oriented product design, and is applied using a flow diverter—an implant for the treatment of aneurysm diseases—as an example product. The personalization relevance and adaptation workload for the product characteristics that constitute the differentiating product properties were analyzed and compared in order to determine a tradeoff between customer value and personalization workload. This will consequently help companies to employ targeted, deliberate personalization when designing their product families by enabling them to factor variety-induced complexity and customer value into their thinking at an early stage, thus allowing them to critically evaluate a personalization project.

Graph Grammar Based Product Variety Modeling

2000 ◽  
Author(s):  
Xuehong Du ◽  
Mitchell M. Tseng ◽  
Jianxin Jiao
Keyword(s):  
Product Family ◽  
Product Variety ◽  
Graph Grammar ◽  
Product Families ◽  
Order Processing ◽  
Product Features ◽  
The Family ◽  
Feature Values ◽  
Data Transferring ◽  
A Company

Abstract This paper discusses the issue of product variety modeling, i.e. the means to organize the data of a family of products according to the underpinning logic among them. The targeted product families are characterized by providing user-selectable product features and feature values and achieving variety by combining parameterized functional or physical modules. A graph grammar based (GGB) model is proposed for the purpose of enhancing the comprehensiveness and manipulability of the data of product families for different functional departments in a company in order to facilitate effective order processing as well as direct customer-manufacturer interaction. To deal with variety effectively, both structural and non-structural family data are represented as family graphs whereas order-specific products are represented as variant graphs derived by applying predefined graph rewrite rules to the family graphs. The most important characteristics of the GGB model are three folds. While emphasizing the distinctiveness of the information that different users are concerned about, it provides cross view data transferring mechanisms. It also supports data manipulation for variety generation. Finally, taking advantage of the graph grammar based language of PROGRES, GGB is a model to be easily implemented as a visualized computer system. The specification of an office chair product family illustrates the principles and construction process of GGB models.

Four Dimensions of Design Similarity

2009 ◽  
Author(s):  
Arjun Ranawat ◽  
Katja Ho¨ltta¨-Otto
Keyword(s):  
Product Family ◽  
Two Dimensions ◽  
Second Phase ◽  
Basic Design ◽  
Family Identity ◽  
Product Families ◽  
Design Elements ◽  
Four Dimensions ◽  
Similar Survey ◽  
Product Pair

To benefit from the value of a brand, a product family must have a coherent product family look. It is however not clear, what in the design contributes toward the coherence or similarity between the products. In this work, a product family identity is broken down into its basic design elements. The contribution of each of these basic design elements toward similarity is investigated. We present a framework of design elements in four dimensions. Examples of these design elements include color, texture, shape, and form. The contribution of these design elements toward the perceived product similarity is investigated. A two phased factorial analysis was performed. The first phase involved simplified shapes consisting of five design elements in the first two dimensions. In the second phase, a similar survey was repeated using images of real products. A survey of product pairs was given to a total of 52 participants. The results show that using the same shape, texture, color, and pattern has a significant effect on making a product pair seem similar to one another. The results will help a designer to design product families that have a coherent product family look but yet look clearly different from the competing brands.

… and justice for all – cost fairness in Volkswagen’s product family

2017 ◽  
Vol 18 (2) ◽  
pp. 261-271 ◽  
Author(s):  
David Müller
Keyword(s):  
Cooperative Game ◽  
Cost Sharing ◽  
Cost Reduction ◽  
Product Family ◽  
Theoretical Framework ◽  
Theoretical Solution ◽  
Product Families ◽  
Content Type ◽  
Wide Range ◽  
Game Theoretic

Purpose Product families offer companies economic advantages in the development and the production stage while satisfying a wide range of customer needs. This concept generates economies of scale and scope, which lead to a significant cost reduction. The realization of product families by several autonomous firms highlights the problem of fair cost sharing. Despite broad agreement on fairness as a highly desired aim, in practice there is a lack of precise terms of operationalization. Therefore, the purpose of this paper is to use a game theoretical framework to achieve fair cost sharing. It is shown that the cooperative game solution ensures fairness and therefore should be accepted by all the partners. Design/methodology/approach Therefore, this study uses a game theoretical framework to reach a fair cost sharing. All family members are modeled as players in a cost reduction game. Using a cooperative game lens allows the identification of fair cost shares. It is shown that cooperative game solution ensures fairness and therefore should be accepted by all partners. Findings It is shown that the average cost assignment method is not fair and therefore not stable. Moreover, the authors show that the game theoretical solution ensures fairness and therefore will be accepted by all partners. Research limitations/implications One main problem of the game theoretic solution concepts is the fact that the benefits of the PFD must be known for the various possible coalitions. By means of suitable forecasts, however, this can be avoided and is not a special problem of the game theoretical solution. The other two main problems are the assumption that the participating companies reach binding agreements ex ante, which are also met ex post, as well as the assumption that side payments between the participating companies are possible. Practical implications It has been demonstrated that game theoretic instruments deliver a fair solution. With the calculated shares, all firms have an incentive to join the grand coalition what ensures a positive motivation and long-term stability. Originality/value This paper’s main contribution is the analysis of a real-life product family through the lens of cooperative game theory.

scholarly journals DESIGN FOR FUTURE VARIETY TO ENABLE LONG-TERM BENEFITS OF MODULAR PRODUCT FAMILIES

2021 ◽  
Vol 1 ◽  
pp. 993-1002
Author(s):  
Erik Greve ◽  
Christoph Fuchs ◽  
Bahram Hamraz ◽  
Marc Windheim ◽  
Dieter Krause
Keyword(s):  
Value Chain ◽  
Product Family ◽  
Product Architecture ◽  
Great Effort ◽  
Allocation Model ◽  
Product Families ◽  
Modular Product ◽  
Critical Components ◽  
A Company

AbstractBy developing and using modular product families, large savings can be achieved through reuse and combinability along the entire value chain of a company. Since these potentials often have a very long-term character, the lifetime of a modular product family should be as long as possible. Change drivers, such as changing customer and production requirements, however, result in changes having to be made to the initially developed modular product family, which not only causes a great effort but also prevents the long-term benefits from being fully exploited. With the Change Allocation Model, we introduce a tool that makes it possible to align the essential future changes to the product architecture and to identify and redesign the change-critical components taking into account the existing component variety of the product family. This enables future changes in variety to be considered in the product architecture and a future robust modular product family to be developed. The new visualization is illustrated using the example of a product family of pressure regulating valves and is finally discussed with regard to further potentials and challenges.

Impression management and legitimacy strategies: The BP case

2013 ◽  
pp. 35-64 ◽  
Author(s):  
Giovanna Michelon
Keyword(s):  
Impression Management ◽  
Management Practices ◽  
Legitimacy Theory ◽  
British Petroleum ◽  
Wide Range ◽  
Management Techniques ◽  
Disclosure Tone ◽  
The Empirical Analysis ◽  
A Company ◽  
Texas City

The aim of this paper is to study if and how impression management varies during different phases of the legitimation process, in particular during the legitimacy building and legitimacy repairing phases (Suchman, 1995). We aim at understanding whether and how the disclosure tone adopted by a company in the two different moments is diverse and thus functional to the intrinsic objective of the each phase. The empirical analysis focuses on the case of British Petroleum Plc. We investigated the impression management practices undertaken by the company both during the preparation of the rebranding operation, i.e. a situation in which the company is trying to build legitimacy; and during the happenings of two legitimacy crises, like the explosion of the refinery in Texas City and the oil spill in the Gulf of Mexico. The evidence appears in line with the theoretical prediction of legitimacy theory. Results show that while the company tends to privilege image enhancement techniques during the legitimacy-building phase, it uses more obfuscation techniques when managing a legitimacy-repairing process. Moreover, the analysis suggests that the company makes more extensive use of impression management techniques in the disclosures addressed to shareholders, investors and other market operators than in the disclosures addressed to the wide range of other stakeholders.

scholarly journals Characteristics of registered clinical trials assessing treatments for COVID-19: a cross-sectional analysis

BMJ Open ◽  
2020 ◽  
Vol 10 (6) ◽  
pp. e039978 ◽  
Author(s):  
Hemalkumar B Mehta ◽  
Stephan Ehrhardt ◽  
Thomas J Moore ◽  
Jodi B Segal ◽  
G Caleb Alexander
Keyword(s):  
Clinical Trials ◽  
Clinical Investigation ◽  
Scientific Progress ◽  
Cross Sectional ◽  
Design Elements ◽  
Cross Sectional Analysis ◽  
Therapeutic Benefits ◽  
Wide Range ◽  
The Usa ◽  
Sectional Analysis

ObjectivesThe coronavirus disease 2019 (COVID-19) pandemic has prompted many initiatives to identify safe and efficacious treatments, yet little is known regarding where early efforts have focused. We aimed to characterise registered clinical trials assessing drugs or plasma treatments for COVID-19.Design, setting and participantsCross-sectional analysis of clinical trials for the treatment of COVID-19 that were registered in the USA or in countries contributing to the WHO’s International Clinical Trials Registry Platform. Relevant trial entries of drugs or plasma were downloaded on 26 March 2020, deduplicated, verified with reviews of major medical journals and WHO websites and independently analysed by two reviewers.Main outcome(s)Trial intervention, sponsorship, critical design elements and specified outcomesResultsOverall, 201 clinical trials were registered for testing the therapeutic benefits of 92 drugs or plasma, including 64 in monotherapy and 28 different combinations. Only eight (8.7%) products or combinations involved new molecular entities. The other test therapies had a wide range of prior medical uses, including as antivirals, antimalarials, immunosuppressants and oncology treatments. In 152 trials (75.7%), patients were randomised to treatment or comparator, including 55 trials with some form of blinding and 97 open-label studies. The 49 (24.4%) of trials without a randomised design included 29 single armed studies and 20 trials with some comparison group. Most trial designs featured multiple endpoints. Clinical endpoints were identified in 134 (66.7%) of trials and included COVID-19 symptoms, death, recovery, required intensive care and hospital discharge. Clinical scales were being used in 33 (16.4%) trials, most often measures of oxygenation and critical illness. Surrogate endpoints or biomarkers were studied in 88 (42.3%) of trials, primarily assays of viral load. Although the trials were initiated in more than 17 countries or regions, 100 (49.8%) were registered in China and 78 (37.8%) in the USA. Registered trials increased rapidly, with the number of registered trials doubling from 1 March to 26 March 2020.ConclusionsWhile accelerating morbidity and mortality from the COVID-19 pandemic has been paralleled by early and rapid clinical investigation, many trials lack features to optimise their scientific value. Global coordination and increased funding of high-quality research may help to maximise scientific progress in rapidly discovering safe and effective treatments.

scholarly journals Minimum cost network flows: Problems, algorithms, and software

2013 ◽  
Vol 23 (1) ◽  
pp. 3-17 ◽  
Author(s):  
Angelo Sifaleras
Keyword(s):  
Network Flow ◽  
Flow Problem ◽  
Network Flows ◽  
Minimum Cost ◽  
Network Flow Problem ◽  
Software Packages ◽  
Wide Range ◽  
Solution Methods ◽  
Minimum Cost Network Flow ◽  
Algorithmic Approaches

We present a wide range of problems concerning minimum cost network flows, and give an overview of the classic linear single-commodity Minimum Cost Network Flow Problem (MCNFP) and some other closely related problems, either tractable or intractable. We also discuss state-of-the-art algorithmic approaches and recent advances in the solution methods for the MCNFP. Finally, optimization software packages for the MCNFP are presented.

scholarly journals Nonlinear Feed Formulation For Broiler: Modeling And Optimzation

2020 ◽  
Vol 8 (12) ◽  
pp. 262-275
Author(s):  
Marcel Alessandro de Almeida ◽  
Manoel Garcia Neto ◽  
Leda Gobbo de Freitas Bueno ◽  
Max José De Araujo Faria Junior ◽  
Marcos Franke Pinto
Keyword(s):  
Broiler Chickens ◽  
Minimum Cost ◽  
Economic Factor ◽  
Profit Margin ◽  
Feed Consumption ◽  
Total Energy Consumption ◽  
Price Variation ◽  
Feed Formulation ◽  
Current Scenario ◽  
Feed Costs

The current scenario requires the application of new computational tools for the feed formulation strategy that uses mathematical modeling in decision making. Noteworthy is the nonlinear programming, which aims not only to formulate a diet that meets the needs of the animal, but also the minimum cost and the maximum profit margin. Thus, the work aimed to validate the use of the nonlinear model (NLM), with maximization of the economic return, through estimates of animal performance and feed costs, according to the price variation of the kg of the broiler (price historical average of 2009 and 2010), the phases of creation and sex. For this purpose, 480 broiler broiler chickens, 240 males and 240 females of the same strain (Cobb 500) were used, from 1 to 56 days of age. The experimental design was entirely randomized, totaling 6 treatments (increasing or decreasing the average historical price of live chicken by 25% or 50%), with 4 replicates and 10 broiler chickens per experimental plot. Performance (weight gain and feed consumption), total energy consumption and profit margin were evaluated. Regarding the formulation principle (Linear and Nonlinear), the performance was very similar in relation to the studied parameters. However, when simulated values of 50% below the historical average, performance was significantly impaired in this specific condition. However, due to the profit margin, it demonstrated that the principle of nonlinear formulation allows to significantly reduce losses (P <0.05), mainly in unfavorable conditions of the price of chicken in the market. It is concluded that the nonlinear principle is more appropriate, since the requirements of all nutrients are automatically adjusted by the mathematical model and with the premise of increasing profitability, different from the linear one, which is to achieve maximum performance and not is directly related to the economic factor.

scholarly journals Analisis Kinerja Keuangan Perusahaan dengan Menggunakan Du Pont System

2020 ◽  
Vol 1 (1) ◽  
pp. 225-232
Author(s):  
Shifa Amalia Rahmani ◽  
Hasbi Assidiki Mauluddi
Keyword(s):  
Financial Performance ◽  
Return On Investment ◽  
Profit Margin ◽  
Total Asset ◽  
Islamic Banks ◽  
Profit Margins ◽  
Net Profit ◽  
Turn Over ◽  
A Company

The development and growth of Islamic banks in Indonesia is very rapid. PT. Bank Muamalat Indonesia as a pioneer of Islamic banks in Indonesia is increasingly in the spotlight of various parties. The resulting performance is always an interesting thing to study further. The company's financial performance can be seen from the ratio of profitability, profitability, solvency and the activities it generates. One calculation tool for profitability is Return On Investment. If the Return On Investment in a company increases, then it shows the more efficient the company is in utilizing its assets, the greater the benefits that can be achieved by the company so that the company's value is also better and more efficient in generating profits. The calculation tool for calculating Return On Investment is a du pont system, where the du pont system focuses on the results of the calculation of net profit margins, total assets turn over and return on investment. The purpose of this study was to determine the financial performance of PT. Bank Muamalat Indonesia for the period 2008-2017 with the studied variables are Net Profit Margin, Total Asset Turn Over and Return On Investment. The conclusion in this study is the net profit margin, total assets turnover and return on investment produced has a fluctuating value.

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