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Including the Value of Time in Design-for-Manufacturing Decision Making

Author

Listed:
  • Karl Ulrich

    (Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • David Sartorius

    (Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Scott Pearson

    (Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Mark Jakiela

    (Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

Abstract

Design for manufacturing (DFM) has been promoted as a way to enhance product development and production system performance. Current DFM practices encourage the minimization of the number of parts in a design through the physical integration of several geometric features in the same part. While this part integration often reduces the manufacturing cost of the product, it also can extend product development lead time, because complex parts typically require tooling with large lead times. This paper presents an economic model that makes explicit the trade-off between lower unit costs and longer product development time. This model is applied to a particular example in a field study of the application of DFM to Polaroid cameras.

Suggested Citation

  • Karl Ulrich & David Sartorius & Scott Pearson & Mark Jakiela, 1993. "Including the Value of Time in Design-for-Manufacturing Decision Making," Management Science, INFORMS, vol. 39(4), pages 429-447, April.
    • Handle: RePEc:inm:ormnsc:v:39:y:1993:i:4:p:429-447
    DOI: 10.1287/mnsc.39.4.429
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    Citations

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    Cited by:

    1. Marshall Fisher & Kamalini Ramdas & Karl Ulrich, 1999. "Component Sharing in the Management of Product Variety: A Study of Automotive Braking Systems," Management Science, INFORMS, vol. 45(3), pages 297-315, March.
    2. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    3. Donald Gerwin & Nicholas J. Barrowman, 2002. "An Evaluation of Research on Integrated Product Development," Management Science, INFORMS, vol. 48(7), pages 938-953, July.
    4. Glen M. Schmidt & Evan L. Porteus, 2000. "Sustaining Technology Leadership Can Require Both Cost Competence and Innovative Competence," Manufacturing & Service Operations Management, INFORMS, vol. 2(1), pages 1-18, March.
    5. Akhilesh Bajaj & Sunder Kekre & Kannan Srinivasan, 2004. "Managing NPD: Cost and Schedule Performance in Design and Manufacturing," Management Science, INFORMS, vol. 50(4), pages 527-536, April.
    6. Novak, Sharon & Eppinger, Steven D., 1998. "Sourcing by design : product complexity and the supply chain," Working papers WP 4045-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    7. Karl T. Ulrich & Scott Pearson, 1998. "Assessing the Importance of Design Through Product Archaeology," Management Science, INFORMS, vol. 44(3), pages 352-369, March.
    8. Sharon Novak & Steven D. Eppinger, 2001. "Sourcing By Design: Product Complexity and the Supply Chain," Management Science, INFORMS, vol. 47(1), pages 189-204, January.
    9. Eva Labro, 2004. "The Cost Effects of Component Commonality: A Literature Review Through a Management-Accounting Lens," Manufacturing & Service Operations Management, INFORMS, vol. 6(4), pages 358-367, June.
    10. Valle, Sandra & Vázquez-Bustelo, Daniel, 2009. "Concurrent engineering performance: Incremental versus radical innovation," International Journal of Production Economics, Elsevier, vol. 119(1), pages 136-148, May.
    11. Anantaram Balakrishnan & Joseph Geunes, 2000. "Requirements Planning with Substitutions: Exploiting Bill-of-Materials Flexibility in Production Planning," Manufacturing & Service Operations Management, INFORMS, vol. 2(2), pages 166-185, January.
    12. Matsui, Yoshiki & Filippini, Roberto & Kitanaka, Hideaki & Sato, Osamu, 2007. "A comparative analysis of new product development by Italian and Japanese manufacturing companies: A case study," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 16-24, October.
    13. Karl T. Ulrich & David J. Ellison, 1999. "Holistic Customer Requirements and the Design-Select Decision," Management Science, INFORMS, vol. 45(5), pages 641-658, May.

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