Improving cost effectiveness in an existing product line using component product platforms

Ronald S. Farrell, Timothy William Simpson

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Previously, we introduced a new method for improving commonality in a highly customized, low volume product line using component product platforms. The method provides a bottom-up platform approach to redesign family members originally developed one-at-a-time to meet specific customer requirements. In this paper, we extend the method with an Activity-Based Costing (ABC) model to specifically capture the manufacturing costs in the product line, including the cost associated with implementing a platform strategy. The valve yoke example is revisited in this paper, the customized ABC model is defined, two design strategy alternatives are addressed, and the new method is used to determine which alternative is better at resolving the tradeoff between commonality, total cost, and product performance. The proposed method shows promise for creating a product platform portfolio from a set of candidate component platforms that is most cost-effective within an existing product line. The proposed method allows for arbitrary leveraging as it does not rely solely on the traditional vertical, horizontal, or beachhead strategies advocated for the market segmentation grid, and this is especially beneficial when applied to an existing product line that was develop one-at-a-time time such that artifact designs are inconsistent from one to another.

Original languageEnglish (US)
Title of host publication2008 Proceedings of the ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, DETC 2008
Pages1031-1041
Number of pages11
EditionPART B
StatePublished - Nov 23 2009
Event2008 ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, DETC 2008 - New York City, NY, United States
Duration: Aug 3 2008Aug 6 2008

Publication series

Name2008 Proceedings of the ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, DETC 2008
NumberPART B
Volume1

Other

Other2008 ASME International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, DETC 2008
CountryUnited States
CityNew York City, NY
Period8/3/088/6/08

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence
  • Computational Theory and Mathematics
  • Industrial and Manufacturing Engineering
  • Mechanical Engineering

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