Assessing Product Architecture Costing: Product Life Cycles, Allocation Rules, and Cost Models

2004 ◽  
Author(s):  
Sebastian K. Fixson
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Life Cycles ◽  
Product Architecture ◽  
Future Research ◽  
Design Decision ◽  
Cost Models ◽  
Product Life ◽  
Allocation Rules ◽  
The Cost

Product families and product platforms have been suggested as design strategies to serve heterogeneous markets via mass customization. Numerous, individual cost advantages of these strategies have been identified for various life cycle processes such as product design, manufacturing, or inventory. However, these advantages do not always occur simultaneously, and sometimes even counteract each other. To develop a better understanding of these phenomena, this paper investigates the cost implications of the underlying design decision: the product architecture choice. The investigation includes factors such as product life cycle phases, allocation rules, and cost models, all of which impact the cost analysis results. Based on this investigation, directions for future research on product architecture costing are provided.

Activity-Based Costing in Design for Product Retirement

1994 ◽  
Author(s):  
Jan Emblemsvåg ◽  
Bert Bras
Keyword(s):  
Decision Making ◽  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Design Decision ◽  
Activity Based Costing ◽  
Product Life ◽  
The Cost ◽  
Future Work

Abstract In this paper, an approach is presented to estimate the cost incurred by different designs based on Activity-Based Costing (ABC). The suitability of utilizing ABC in design is explored in the context of design for product retirement. A comparison is made with a number of approaches for estimating product life-cycle cost. In comparison to other costing schemes, ABC has the advantages that it can trace both direct and indirect (overhead) costs correctly back to where these costs actually were incurred. This ‘traceability’ facilitates the identification of the most cost inefficient parts of the design, which makes ABC much more suitable for design decision making than other costing schemes. In general, ABC is also more accurate. Although the costs related to any part of a product’s life-cycle can be estimated, an automobile product retirement example is used to illustrate the usage of the approach described. In the example, a decision has to be made whether to pursue a recyclable car or a non-recyclable car. Future work is identified, primarily related to the inclusion of uncertainty in the approach presented.

Study on life-cycle design for the post mass production paradigm

2000 ◽  
Vol 14 (2) ◽  
pp. 149-161 ◽  
Author(s):  
YASUSHI UMEDA ◽  
AKIRA NONOMURA ◽  
TETSUO TOMIYAMA
Keyword(s):  
Life Cycle ◽  
Mass Production ◽  
Product Life Cycle ◽  
Knowledge Bases ◽  
Life Cycles ◽  
Simulation System ◽  
Product Life ◽  
Cycle Simulation ◽  
Life Cycle Design ◽  
Modular Structures

Environmental issues require a new manufacturing paradigm because the current mass production and mass consumption paradigm inevitably cause them. We have already proposed a new manufacturing paradigm called the “Post Mass Production Paradigm (PMPP)” that advocates sustainable production by decoupling economic growth from material and energy consumption. To realize PMPP, appropriate planning of a product life cycle (design of life cycle) is indispensable in addition to the traditional environmental conscious design methodologies. For supporting the design of a life cycle, this paper proposes a life-cycle simulation system that consists of a life-cycle simulator, an optimizer, a model editor, and knowledge bases. The simulation system evaluates product life cycles from an integrated view of environmental consciousness and economic profitability and optimizes the life cycles. A case study with the simulation system illustrates that the environmental impacts can be reduced drastically without decreasing corporate profits by appropriately combining maintenance, reuse and recycling, and by taking into consideration that optimized modular structures differ according to life-cycle options.

Issues in Product Life Cycle Engineering Analysis

1993 ◽  
Author(s):  
David E. Lee ◽  
Michel A. Melkanoff
Keyword(s):  
Life Cycle ◽  
Life Cycle Analysis ◽  
Product Life Cycle ◽  
Organizational Context ◽  
Operational Performance ◽  
Future Research ◽  
Engineering Analysis ◽  
Initial Development ◽  
Product Life ◽  
Life Cycle Engineering

Abstract Traditional engineering analysis of product designs has focused primarily on a product’s operational performance without considering costs of manufacturing and other stages downstream from design. In contrast, life cycle analysis of a product during its initial development can play a crucial role in determining the product’s overall life cycle cost and useful life span. This paper examines product life cycle engineering analysis - measurement of product operational performance in a life cycle context. Life cycle engineering analysis is thus considered both as an extension of traditional engineering analysis methods and as a subset of a total product life cycle analysis. The issues critical to life cycle engineering analysis are defined and include product life cycle data modeling and analysis, analysis tools and their performance regimes, performance tradeoff measurement and problems of life cycle engineering analysis in an organizational context. Recommendations are provided for future research directions into life cycle engineering analysis in the context of integration architectures for concurrent engineering.

Review of Life Cycle Theories

2008 ◽  
pp. 30-54
Author(s):  
Toru Higuchi ◽  
Marvin Troutt
Keyword(s):  
Life Cycle ◽  
Facility Location ◽  
Product Life Cycle ◽  
New Product ◽  
Life Cycles ◽  
Product Cycle ◽  
Product Life ◽  
Manufacturing Facility ◽  
Manufacturing Facilities ◽  
Industrial Life Cycle

In this chapter, we discuss the life cycle theories related to the business. The concept of the life cycle has been widely used in marketing. The Product Life Cycle (PLC) is the most well-known one, in which the time is divided into four stages based on the change of sales. It is expanded by combining it with the study of the various consumer types. Other life cycles have been developed from the viewpoint of the innovation and manufacturing facility location. The advancement of technology is the driver for the diffusion of a new product. Sometimes it obsoletes a category of products. The location of manufacturing facilities changes according to the market and technology condition as Product Cycle Theory demonstrates. A concept of the industrial life cycle and a linkage between the life cycle and SCM also are argued in this chapter.

Life Cycle Cost Modeling of Pumps Using an Activity Based Costing Methodology

2010 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Anil Dattatraya Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Business Environment ◽  
Life Cycle Costing ◽  
Activity Based Costing ◽  
Global Business ◽  
Product Life ◽  
Traditional Costing ◽  
The Cost

In order to survive in today’s competitive global business environment, implementation of life cycle costing methodology with a greater emphasis on cost control could be one of the convincing approaches for the manufacturing firms. The product life cycle costing approach can help track and analyse the cost implications associated with each phase of product life cycle. Life cycle costing (LCC) practices with traditional costing methods may provide results that have a severe deviation from the real product LCC as it focuses on the cost of materials, labor and a low portion of overheads apportioned by the absorption rate to the product. Activity based costing (ABC) has emerged as one of the several innovative and more accurate costing methods in recent years. It is based on the principle that products or services consume activities and activities consume resources that generate costs. Thus, the ABC system focuses on calculating the costs incurred on performing the activities to manufacture a product. This paper presents a LCC modeling approach for estimating life cycle cost of pumps using activity based costing method. The study was conducted in a large pump manufacturing company from India that has significant global standing within its industry. Firstly, all the activities and cost drivers associated with the life cycle of a pump have been identified. A methodology for LCC analysis using ABC is then developed and it is applied to two different pumps manufactured by the same industry and the results obtained are presented.

scholarly journals Automatic generation of design structure matrices through the evolution of product models

2016 ◽  
Vol 30 (4) ◽  
pp. 424-445 ◽  
Author(s):  
James A. Gopsill ◽  
Chris Snider ◽  
Chris McMahon ◽  
Ben Hicks
Keyword(s):  
Life Cycle ◽  
Computer Aided Design ◽  
Product Life Cycle ◽  
Automatic Generation ◽  
Product Architecture ◽  
Fundamental Aspect ◽  
Element Analysis ◽  
Product Life ◽  
Design Structure ◽  
Product Models

AbstractDealing with component interactions and dependencies remains a core and fundamental aspect of engineering, where conflicts and constraints are solved on an almost daily basis. Failure to consider these interactions and dependencies can lead to costly overruns, failure to meet requirements, and lengthy redesigns. Thus, the management and monitoring of these dependencies remains a crucial activity in engineering projects and is becoming ever more challenging with the increase in the number of components, component interactions, and component dependencies, in both a structural and a functional sense. For these reasons, tools and methods to support the identification and monitoring of component interactions and dependencies continues to be an active area of research. In particular, design structure matrices (DSMs) have been extensively applied to identify and visualize product and organizational architectures across a number of engineering disciplines. However, the process of generating these DSMs has primarily used surveys, structured interviews, and/or meetings with engineers. As a consequence, there is a high cost associated with engineers' time alongside the requirement to continually update the DSM structure as a product develops. It follows that the proposition of this paper is to investigate whether an automated and continuously evolving DSM can be generated by monitoring the changes in the digital models that represent the product. This includes models that are generated from computer-aided design, finite element analysis, and computational fluid dynamics systems. The paper shows that a DSM generated from the changes in the product models corroborates with the product architecture as defined by the engineers and results from previous DSM studies. In addition, further levels of product architecture dependency were also identified. A particular affordance of automatically generating DSMs is the ability to continually generate DSMs throughout the project. This paper demonstrates the opportunity for project managers to monitor emerging product dependencies alongside changes in modes of working between the engineers. The application of this technique could be used to support existing product life cycle change management solutions, cross-company product development, and small to medium enterprises who do not have a product life cycle management solution.

Modeling Competition over Product Life Cycles

2015 ◽  
Vol 32 (04) ◽  
pp. 1550021 ◽  
Author(s):  
Ka Ching Chan ◽  
Terry M. Mills
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Life Cycles ◽  
Valuable Insight ◽  
Mobile Telecommunication ◽  
Product Life ◽  
Market Growth ◽  
Product Life Cycles ◽  
Market Shares ◽  
Different Types

This paper presents a mathematical model, linking the classical Markov models for brand switching and models for product life cycles, to forecast competition analysis and market share. This integrated model can be used to forecast market shares of all competitors, and their market shares, including customers retained, customers gained from market growth, and customers gained from competitors over the product life cycle. Such information provides forecasters with valuable insight about their market positions. The model is generic and can be applied to different types of products and services, under different types and patterns of product life cycle curves. A numerical example on a typical mobile telecommunication industry is used to illustrate the application of the proposed approach.

Procurement Approaches in Different Supply Chains

2013 ◽  
Vol 436 ◽  
pp. 551-556
Author(s):  
Stefan Pap ◽  
Liviu Morar
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Supply Chains ◽  
Product Life Cycle ◽  
Point Of View ◽  
Complex Environment ◽  
Supplier Relationships ◽  
Product Life ◽  
Supply Chain Efficiency ◽  
The Cost

From a purchasing point of view, it can be argued that in order for a supply chain to be efficient the cost of purchasing must be balanced with risk pertaining to the supply market and the purchased product. To decide on the appropriate forms of supplier relationships today, we argue that there are three main dimensions to be considered: A more complex environment. Supply chain efficiency. Product life cycle.

scholarly journals THE IMPACT OF PRODUCT LIFE CYCLE TECHNIQUE IN REDUCING COSTS AND ACHIEVING SUSTAINABLE DEVELOPMENT GOALS, A CASE STUDY IN THE RUSTAN STEEL STRUCTURE PRODUCTION COMPANY IN ERBIL

2021 ◽  
Vol 03 (07) ◽  
pp. 314-328
Author(s):  
Ghazi Abdulazeez SULAIMAN BAG ◽  
Rafiq Faraj MAHMOOD
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Steel Structures ◽  
Product Life ◽  
Technical Requirements ◽  
The Cost ◽  
The Impact

This research was - case study in Rstin company for the steel structures in Erbil- addressed the cost technique of product life cycle, as discussed the kinds, relevance and the stages of the life cycle of the product, also it referred to the corporate governance of discussing its inception the concept and importance of the principles, objectives, and mechanisms was addressed to the technical aspects of the overlap between the cost of the product life cycle corporate governance and show the appropriate techniques used in each stage of the life cycle of the product and how it achieved by a reduction of costs. The result of this study indicates that the integration between the product life cycle cost and corporate governance works on reduce costs through the various stages of product life cycle. It also concluded that this integration increases the company ability to compete in market which leads to rise in its market share and eventually lead to maximize the profit which has been achieved through the optimal use of a company available resources. It also found that the techniques of life cycle cost of the product cannot be applied without support of the company directors, throughout the technical requirements of the application. Corporate governance ensures directors of the company to utilize firm resources which makes the company to achieve several stakeholders' objectives.

scholarly journals Considering Product Life Cycle Cost Purchasing Strategy for Solving Vendor Selection Problems

2019 ◽  
Vol 11 (13) ◽  
pp. 3739
Author(s):  
Chien-Wen Shen ◽  
Yen-Ting Peng ◽  
Chang-Shu Tu
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Economies Of Scale ◽  
Rejection Rate ◽  
Life Cycles ◽  
High Tech ◽  
Vendor Selection ◽  
Product Life ◽  
Strategic Relationships

The framework of product life cycle (PLC) cost analysis is one of the most important evaluation tools for a contemporary high-tech company in an increasingly competitive market environment. The PLC-purchasing strategy provides the framework for a procurement plan and examines the sourcing strategy of a firm. The marketing literature emphasizes that ongoing technological change and shortened life cycles are important elements in commercial organizations. From a strategic viewpoint, the vendor has an important position between supplier, buyer and manufacturer. The buyer seeks to procure the products from a set of vendors to take advantage of economies of scale and to exploit opportunities for strategic relationships. However, previous studies have seldom considered vendor selection (VS) based on PLC cost (VSPLCC) analysis. The purpose of this paper is to solve the VSPLCC problems considering the situation of a single buyer–multiple supplier. For this issue, a new VSPLCC procurement model and solution procedure are derived in this paper to minimize net cost, rejection rate, late delivery and PLC cost subject to vendor capacities and budget constraints. Moreover, a real case in Taiwan is provided to show how to solve the VSPLCC procurement problem.

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