TY - GEN
T1 - Improving cost effectiveness in an existing product line using component product platforms
AU - Farrell, Ronald S.
AU - Simpson, Timothy W.
PY - 2008
Y1 - 2008
N2 - 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.
AB - 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.
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U2 - 10.1115/DETC2008-49544
DO - 10.1115/DETC2008-49544
M3 - Conference contribution
AN - SCOPUS:81155138262
SN - 9780791843253
T3 - Proceedings of the ASME Design Engineering Technical Conference
SP - 1031
EP - 1041
BT - ASME 2008 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, IDETC/CIE2008
T2 - ASME 2008 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, IDETC/CIE2008
Y2 - 3 August 2008 through 6 August 2008
ER -