IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v119y2009i1p174-186.html
   My bibliography  Save this article

Quantifying the effects of parts consolidation and development costs on material selection decisions: A process-based costing approach

Author

Listed:
  • Johnson, Michael
  • Kirchain, Randolph

Abstract

Product designers must continually assess trade-offs among various performance attributes and cost. Materials choice can play an important role in that decision-making process. Materials affect many aspects of a product and firm--architecture, manufacture, and product performance. This paper examines the interrelationship of these early stage design choices through the application of process-based cost modeling. To capture the far-ranging effects of materials selection, models are presented which forecast the costs of development, manufacture, and assembly. A case study is detailed concerning two alternative material options for an automotive instrument panel beam: a conventional design (i.e., stamped steel) and a die-cast magnesium design which affords significant parts consolidation. Results indicate that parts consolidation led to both lower assembly and development costs. These cost reductions are shown to be a direct result of the consolidation of parts in the magnesium design.

Suggested Citation

  • Johnson, Michael & Kirchain, Randolph, 2009. "Quantifying the effects of parts consolidation and development costs on material selection decisions: A process-based costing approach," International Journal of Production Economics, Elsevier, vol. 119(1), pages 174-186, May.
    • Handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:174-186
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00044-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Carrillo, Janice E. & Franza, Richard M., 2006. "Investing in product development and production capabilities: The crucial linkage between time-to-market and ramp-up time," European Journal of Operational Research, Elsevier, vol. 171(2), pages 536-556, June.
    2. Oliver Houseman & Rajkumar Roy & Charles Wainwright & Evaggelos Lavdas, 2008. "Cost optimising aircraft systems at a conceptual design stage," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 15(3/4), pages 328-345.
    3. Daschbach, J. M. & Apgar, Henry, 1988. "Design analysis through techniques of parametric cost estimation," Engineering Costs and Production Economics, Elsevier, vol. 14(2), pages 87-93, July.
    4. Brierley, John A. & Cowton, Christopher J. & Drury, Colin, 2006. "A comparison of product costing practices in discrete-part and assembly manufacturing and continuous production process manufacturing," International Journal of Production Economics, Elsevier, vol. 100(2), pages 314-321, April.
    5. Cavalieri, Sergio & Maccarrone, Paolo & Pinto, Roberto, 2004. "Parametric vs. neural network models for the estimation of production costs: A case study in the automotive industry," International Journal of Production Economics, Elsevier, vol. 91(2), pages 165-177, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kinoshita, Yuki & Yamada, Tetsuo & Gupta, Surendra M. & Ishigaki, Aya & Inoue, Masato, 2020. "Decision support model of environmentally friendly and economical material strategy for life cycle cost and recyclable weight," International Journal of Production Economics, Elsevier, vol. 224(C).
    2. Johnson, Michael D. & Kirchain, Randolph E., 2009. "Quantifying the effects of product family decisions on material selection: A process-based costing approach," International Journal of Production Economics, Elsevier, vol. 120(2), pages 653-668, August.
    3. Christophe Combemale & Kate S Whitefoot & Laurence Ales & Erica R H Fuchs, 2021. "Not all technological change is equal: how the separability of tasks mediates the effect of technology change on skill demand [Patterns of industrial innovation]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(6), pages 1361-1387.
    4. Folgado, R. & Peças, P. & Henriques, E., 2010. "Life cycle cost for technology selection: A Case study in the manufacturing of injection moulds," International Journal of Production Economics, Elsevier, vol. 128(1), pages 368-378, November.
    5. Akamphon, Sappinandana & Sukkasi, Sittha & Boonyongmaneerat, Yuttanant, 2012. "Reduction of zinc consumption with enhanced corrosion protection in hot-dip galvanized coatings: A process-based cost analysis," Resources, Conservation & Recycling, Elsevier, vol. 58(C), pages 1-7.
    6. Knofius, N. & van der Heijden, M.C. & Zijm, W.H.M., 2019. "Consolidating spare parts for asset maintenance with additive manufacturing," International Journal of Production Economics, Elsevier, vol. 208(C), pages 269-280.
    7. Duffner, Fabian & Mauler, Lukas & Wentker, Marc & Leker, Jens & Winter, Martin, 2021. "Large-scale automotive battery cell manufacturing: Analyzing strategic and operational effects on manufacturing costs," International Journal of Production Economics, Elsevier, vol. 232(C).
    8. Shahriar, Ali & Khandoker, Azad & Gessl, Guido & Sint, Sabine & Hamid, M.A. & Tariq, Abrar & Rahman, Al, 2022. "Predicting the unpredictable: General Aviation (GA) aircraft cost estimation evaluation," Journal of Air Transport Management, Elsevier, vol. 102(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qian, Li & Ben-Arieh, David, 2008. "Parametric cost estimation based on activity-based costing: A case study for design and development of rotational parts," International Journal of Production Economics, Elsevier, vol. 113(2), pages 805-818, June.
    2. Johnson, Michael D. & Kirchain, Randolph E., 2009. "Quantifying the effects of product family decisions on material selection: A process-based costing approach," International Journal of Production Economics, Elsevier, vol. 120(2), pages 653-668, August.
    3. Deng, S. & Yeh, Tsung-Han, 2011. "Using least squares support vector machines for the airframe structures manufacturing cost estimation," International Journal of Production Economics, Elsevier, vol. 131(2), pages 701-708, June.
    4. Ozer, Muammer, 2007. "Reducing the demand uncertainties at the fuzzy-front-end of developing new online services," Research Policy, Elsevier, vol. 36(9), pages 1372-1387, November.
    5. Gülru F. Özkan-Seely & Cheryl Gaimon & Stylianos Kavadias, 2015. "Dynamic Knowledge Transfer and Knowledge Development for Product and Process Design Teams," Manufacturing & Service Operations Management, INFORMS, vol. 17(2), pages 177-190, May.
    6. Duffner, Fabian & Mauler, Lukas & Wentker, Marc & Leker, Jens & Winter, Martin, 2021. "Large-scale automotive battery cell manufacturing: Analyzing strategic and operational effects on manufacturing costs," International Journal of Production Economics, Elsevier, vol. 232(C).
    7. Weckenborg, Christian & Schumacher, Patrick & Thies, Christian & Spengler, Thomas S., 2024. "Flexibility in manufacturing system design: A review of recent approaches from Operations Research," European Journal of Operational Research, Elsevier, vol. 315(2), pages 413-441.
    8. Korn, Ralf & Melnyk, Yaroslav & Seifried, Frank Thomas, 2017. "Stochastic impulse control with regime-switching dynamics," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1024-1042.
    9. Ibrahim, Awad Elsayed Awad & Elamer, Ahmed A. & Ezat, Amr Nazieh, 2021. "The convergence of big data and accounting: innovative research opportunities," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    10. Annika Becker & Raik Stolletz & Thomas Stäblein, 2017. "Strategic ramp-up planning in automotive production networks," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 59-78, January.
    11. Alcouffe, Simon & Galy, Nadine & Gaté, Loïc, 2016. "Une méta-analyse qualitative de la littérature sur les déterminants de l'adoption de l'activity-based costing [A meta-analysis of the literature on the determinants of the adoption of activity-base," MPRA Paper 73381, University Library of Munich, Germany.
    12. Satoglu, Sule Itir & Durmusoglu, M. Bulent & Dogan, Ibrahim, 2006. "Evaluation of the conversion from central storage to decentralized storages in cellular manufacturing environments using activity-based costing," International Journal of Production Economics, Elsevier, vol. 103(2), pages 616-632, October.
    13. Chou, Jui-Sheng & Tai, Yian & Chang, Lian-Ji, 2010. "Predicting the development cost of TFT-LCD manufacturing equipment with artificial intelligence models," International Journal of Production Economics, Elsevier, vol. 128(1), pages 339-350, November.
    14. Caputo, Antonio C. & Pelagagge, Pacifico M., 2008. "Parametric and neural methods for cost estimation of process vessels," International Journal of Production Economics, Elsevier, vol. 112(2), pages 934-954, April.
    15. Lin, Jun & Chai, Kah Hin & Brombacher, Aarnout C. & Wong, Yoke San, 2009. "Optimal overlapping and functional interaction in product development," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1158-1169, August.
    16. Carlos F. A. Arranz & Caleb Kwong & Vania Sena, 2023. "The effect of consumption and production policies on circular economy business models: A machine learning approach," Journal of Industrial Ecology, Yale University, vol. 27(4), pages 1089-1104, August.
    17. Herwig Winkler & Michael Slamanig, 2008. "Konzeption eines aktivitätsorientierten Instruments zur Anlaufkostenplanung," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 19(1), pages 85-106, May.
    18. Lai, Hsin-Hsi & Lin, Yang-Cheng & Yeh, Chung-Hsing & Wei, Chien-Hung, 2006. "User-oriented design for the optimal combination on product design," International Journal of Production Economics, Elsevier, vol. 100(2), pages 253-267, April.
    19. Sakti, Apurba & Azevedo, Inês M.L. & Fuchs, Erica R.H. & Michalek, Jeremy J. & Gallagher, Kevin G. & Whitacre, Jay F., 2017. "Consistency and robustness of forecasting for emerging technologies: The case of Li-ion batteries for electric vehicles," Energy Policy, Elsevier, vol. 106(C), pages 415-426.
    20. Rogozhin, Alex & Gallaher, Michael & Helfand, Gloria & McManus, Walter, 2010. "Using indirect cost multipliers to estimate the total cost of adding new technology in the automobile industry," International Journal of Production Economics, Elsevier, vol. 124(2), pages 360-368, April.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:119:y:2009:i:1:p:174-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.