Quantifying the effects of product family decisions on material selection: A process-based costing approach
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. Product platforms are used to meet the demand for increased product variety, while also managing costs. Because of their interdependent effects, it is possible that platforming strategies may alter preferred material choice. This paper examines the interrelationship of these early stage design choices through the application of process-based cost modeling. A case study is detailed concerning two alternative material options for an automotive instrument panel beam: a die-cast magnesium design and a conventional design (i.e., discrete stamped steel components) which allows for more component sharing than the integrated magnesium design. The effects of component sharing on product family costs are analyzed. It is shown that the magnesium design is less competitive in platformed scenarios.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Preyas Desai & Sunder Kekre & Suresh Radhakrishnan & Kannan Srinivasan, 2001. "Product Differentiation and Commonality in Design: Balancing Revenue and Cost Drivers," Management Science, INFORMS, vol. 47(1), pages 37-51, January.
- Verlinden, B. & Duflou, J.R. & Collin, P. & Cattrysse, D., 2008. "Cost estimation for sheet metal parts using multiple regression and artificial neural networks: A case study," International Journal of Production Economics, Elsevier, vol. 111(2), pages 484-492, February.
- Marc H. Meyer & Peter Tertzakian & James M. Utterback, 1997. "Metrics for Managing Research and Development in the Context of the Product Family," Management Science, INFORMS, vol. 43(1), pages 88-111, January.
- 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.
- H'mida, Fehmi & Martin, Patrick & Vernadat, Francois, 2006. "Cost estimation in mechanical production: The Cost Entity approach applied to integrated product engineering," International Journal of Production Economics, Elsevier, vol. 103(1), pages 17-35, September.
- Afonso, Paulo & Nunes, Manuel & Paisana, António & Braga, Ana, 2008. "The influence of time-to-market and target costing in the new product development success," International Journal of Production Economics, Elsevier, vol. 115(2), pages 559-568, October.
- Kelvin Lancaster, 1990. "The Economics of Product Variety: A Survey," Marketing Science, INFORMS, vol. 9(3), pages 189-206.
- Muffatto, Moreno, 1999. "Introducing a platform strategy in product development," International Journal of Production Economics, Elsevier, vol. 60(1), pages 145-153, April.
- Aderoba, Adeyemi, 1997. "A generalised cost-estimation model for job shops," International Journal of Production Economics, Elsevier, vol. 53(3), pages 257-263, December.
- 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.
- 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.
- V. Krishnan & Saurabh Gupta, 2001. "Appropriateness and Impact of Platform-Based Product Development," Management Science, INFORMS, vol. 47(1), pages 52-68, January.
- Fad, Bruce E. & Summers, Roy M., 1988. "Parametric estimating for new business ventures," Engineering Costs and Production Economics, Elsevier, vol. 14(2), pages 165-176, July.
- 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.
- 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.
- Roy, Rajkumar & Colmer, Scott & Griggs, Terry, 2005. "Estimating the cost of a new technology intensive automotive product: A case study approach," International Journal of Production Economics, Elsevier, vol. 97(2), pages 210-226, August.
- Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
- Bernard, A. & Perry, N. & Delplace, J.C., 2007. "Concurrent cost engineering for decisional and operational process enhancement in a foundry," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 2-11, September.
- John Paul MacDuffie & Kannan Sethuraman & Marshall L. Fisher, 1996. "Product Variety and Manufacturing Performance: Evidence from the International Automotive Assembly Plant Study," Management Science, INFORMS, vol. 42(3), pages 350-369, March.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:120:y:2009:i:2:p:653-668. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.