Managing Variety for Assembled Products: Modeling Component Systems Sharing

@article{Ramdas2003ManagingVF,
  title={Managing Variety for Assembled Products: Modeling Component Systems Sharing},
  author={Kamalini Ramdas and Marshall L. Fisher and Karl T. Ulrich},
  journal={Manuf. Serv. Oper. Manag.},
  year={2003},
  volume={5},
  pages={142-156}
}
Component sharing--using the same version of a component across multiple products--is an approach adopted by many assembled-product manufacturers to achieve high final product variety with lower component variety and cost. This paper presents a methodology for determining which versions of a set of related components should be offered to optimally support a defined finished product portfolio. We develop optimization models that determine which versions of each component should be introduced and… 

Figures and Tables from this paper

The Impact of Component Sharing on Quality: An Empirical Study in the Automotive Industry

Component sharing – the use of a component on multiple products within a firm’s product line – is widely practiced as a means to offer high variety at low cost. While many researchers have examined

Does Component Sharing Help or Hurt Reliability? An Empirical Study in the Automotive Industry

Support is found for the hypothesis that higher component reliability is associated with higher cumulative experience with a component, which suggests that the popular design strategy of component sharing can in some cases compromise product quality, via reduced reliability.

The Role of Component Commonality in Product Assortment Decisions

The effects of commonality on profit and variety level are stronger under a demand model in which product demands are more variable and exhibit pairwise negative correlation relative to a model with independent demands.

Analysis of an industrial component commonality problem

A General Solution Framework for Component-Commonality Problems

The paper on hand aims at a general framework which is flexible and efficient enough to be applied to a wide range of commonality problems, and a procedure based on a two-stage graph approach is presented and tested.

Product portfolio planning with customer-engineering interaction

A critical decision that faces companies across all industrial sectors is the selection of an optimal mix of product attributes to offer in the marketplace, namely product portfolio planning. The

Optimizing module upgrade decisions to maximize profits

An optimization model is presented to help modular product development managers choose the optimal subset of module upgrades from a large set of potential upgrades to maximize profits.

Optimizing module upgrade decisions to maximize profits

With rising market competition, organizations unceasingly strive to improve product offerings by adopting a modular product architecture. Modular product development (PD) is concerned with decisions

Cost management of modular products: An interventionist research study

This study understands modularity as a deliberate cost management strategy, and shows the multiple facets and partly ambiguous effects such approaches have during the different stages of a product’s whole life cycle.

MANAGING PRODUCT VARIETY: AN INTEGRATIVE REVIEW AND RESEARCH DIRECTIONS

Rapidly evolving technologies, global competition, and sophisticated customers have contributed to an increase in product variety in many industries. However, simply increasing variety does not
...

References

SHOWING 1-10 OF 22 REFERENCES

Planning for Product Platforms

By sharing components and production processes across a platform of products, companies can develop differentiated products efficiently, make their manufacturing processes more flexible, and take

Special Issue on Design and Development: A Cross-Functional Approach to Evaluating Multiple Line Extensions for Assembled Products

It is demonstrated that this approach is most valuable when cannibalization dominates competitive draw as a source of volume, and its relative merits under low and high parts-sharing is discussed.

Component Sharing in the Management of Product Variety: a Study of Automotive Braking Systems

An analytic model of component sharing is developed and it is shown that the optimal number of brake rotors is a function of the range of vehicle weights, sales volume, fixed component design and tooling costs, variable costs, and the variation in production volume across the models of the product line.

Product Line and Technology Selection with Shared Manufacturing and Engineering Design Resources

In this paper, we consider the problem of which products to offer and how to price them when the products are designed and manufactured using resources shared among them. We develop a model of costs

A Model-Based Approach for Planning and Developing a Family of Technology-Based Products

This paper offers a model for capturing costs of product development when the family consists of variants based on a common platform and shows that the model can be converted into a network-optimization problem, and the optimal product-family can be identified under fairly general conditions by determining the shortest path of its network formulation.

MANAGING PRODUCT VARIETY: AN INTEGRATIVE REVIEW AND RESEARCH DIRECTIONS

Rapidly evolving technologies, global competition, and sophisticated customers have contributed to an increase in product variety in many industries. However, simply increasing variety does not

Marketing/Manufacturing Trade-Offs in Product Line Management

A critical decision facing firms across industries is the selection of a mix of products to offer in the marketplace. Both in practice and in the academic literature, the product line design problem

Managing in an age of modularity.

As businesses as diverse as auto manufacturing and financial services move toward modular designs, the authors say, competitive dynamics will change enormously: no longer will assemblers control the final product: suppliers of key modules will gain leverage and even take on responsibility for design rules.

Special Issue on Design and Development: Product Differentiation and Commonality in Design: Balancing Revenue and Cost Drivers

This work explicitly investigates the marketing-manufacturing trade-off and derive analytical implications for three possible design configurations: unique, premium-common, and basic-common to develop an index that can rank order components in terms of their attractiveness for commonality.