TY - JOUR
T1 - Development of a production cost estimation framework to support product family design
AU - Park, J.
AU - Simpson, T. W.
N1 - Funding Information:
This work was supported by the National Science Foundation under grant No. DMI-0133923. Any opinions, findings, and conclusions or recommendations presented in this paper are those of the authors and do not necessarily reflect the views of the National Science Foundation.
PY - 2005/2/15
Y1 - 2005/2/15
N2 - 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 both estimating the production cost of each product in the family and the costs incurred by common and variant components/design variables in the family. To estimate these costs consistently and accurately, we propose a production cost estimation framework to support product family design based on activity-based costing (ABC), which consists of three stages: (1) allocation, (2) estimation, and (3) analysis. In the allocation stage, the production activities and resources needed to produce the entire products in a family are identified and classified with an activity table, a resource table, and a production flow. To help allocate product data for production, a product family structure is represented by a hierarchical classification of products that form the product family. In the estimation stage, production costs are estimated with cost estimation methods selected based on the type of information available. In the analysis stage, components/design variables possible 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 that share different components within the family.
AB - 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 both estimating the production cost of each product in the family and the costs incurred by common and variant components/design variables in the family. To estimate these costs consistently and accurately, we propose a production cost estimation framework to support product family design based on activity-based costing (ABC), which consists of three stages: (1) allocation, (2) estimation, and (3) analysis. In the allocation stage, the production activities and resources needed to produce the entire products in a family are identified and classified with an activity table, a resource table, and a production flow. To help allocate product data for production, a product family structure is represented by a hierarchical classification of products that form the product family. In the estimation stage, production costs are estimated with cost estimation methods selected based on the type of information available. In the analysis stage, components/design variables possible 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 that share different components within the family.
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U2 - 10.1080/00207540512331311903
DO - 10.1080/00207540512331311903
M3 - Article
AN - SCOPUS:27944481705
SN - 0020-7543
VL - 43
SP - 731
EP - 772
JO - International Journal of Production Research
JF - International Journal of Production Research
IS - 4
ER -