Reconciling Co-Evolving Engineering and Customer Requirements With a Looped Bayesian Model
Abstract Engineering and manufacturing abilities of firms evolve with every passing year and so do the preferences of the customers buying their products. Reconciling this coevolution is essential to staying competitive in the marketplace. In this paper, we provide a looped Bayesian framework to accomplish this so that designs can evolve as engineering capabilities increase and customer preferences change. We begin with an approach to incorporating the voice of the customer through the multi-attribute utility function, the core of decision-based design. We consider the utility to be a stochastic function governed by shape parameters that are random variables. Typically, a representative preference or utility function is used or the function is aggregated over many decision makers and regarded as a deterministic function of specified shape parameters. In our approach, the shape parameters represent the stochastic nature of preference behavior either due to variation in a decision maker’s state of mind from one decision to another, or due to a multiplicity of decision makers. The novelty of this approach is in taking a Bayesian perspective on the stochastic utility function. We consider the utility distribution in the design phase as a prior distribution and we update the prior to a posterior with feedback on the actual product in production. The method is valuable in providing a means to improve the level of informativeness of the design level utility function for adjustments to the design or for the next design revision in the cycle of continuous improvement. We present our approach on a real-life assembly problem in an automotive manufacturing floor.