Identifying variety-induced complexity cost factors in manufacturing companies and their impact on product profitability

Myrodia, Anna; Hvam, Lars; Sandrin, Enrico; Forza, Cipriano; Haug, Anders

doi:10.1016/j.jmsy.2021.04.017

Cited by 8 publications

(2 citation statements)

References 72 publications

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“…According to Hvam et al (2020), significant cost drivers can be identified by taking a basis in lists of cost drivers found in the literature (e.g. Closs et al, 2008;Jacobs and Swink, 2011;Myrodia and Hvam, 2015) to support the identification of relevant cost drivers, on which basis cost distributions the product families can be elaborated.…”

Section: : Defining the Scope And Collecting The Project Datamentioning

confidence: 99%

Identifying profitable reference architectures in an engineer-to-order context

Løkkegaard

Bertram

Mortensen

et al. 2022

International Journal of Production Research

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Companies operating with an engineer-to-order (ETO) strategy are often challenged with generating the desired profit as a consequence of product volumes and high levels of product customisation. Profit margins are seen to vary greatly from project to project, which may partly be explained by a lack of references to guide design decisions. Specifically, new product offerings are often based on reuse of design knowledge, which is often not efficiently utilised, as the knowledge transfer and reuse across projects are unstructured, incomplete, or not providing a suitable reference for design specification. To address this issue, this paper presents a method for identifying reference architectures under the consideration of profitability. The method was developed by combining and extending known methods within the fields of product architecture and complexity cost estimation to cover part of the ETO domain. The method was tested in two companies, one producing industrial spray drying plants and the other providing solutions for the production of confectionary products. The findings suggest that a limited understanding of "preferred solutions" existed in the two case companies, and applying the suggested method to identifying reference architectures could potentially support a more profitable project execution.

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Section: : Defining the Scope And Collecting The Project Datamentioning

confidence: 99%

Identifying profitable reference architectures in an engineer-to-order context

Løkkegaard

Bertram

Mortensen

et al. 2022

International Journal of Production Research

View full text Add to dashboard Cite

show abstract

“…Then, Askhøj and Mortensen (2020) developed a method for reducing the number of product architectures managed in a company. Recently, Askhøj et al (2021) developed a modularization tool for visualizing cross-domain relationships among mechanics, electronics, and software domains, and Myrodia et al (2021) extensively reviewed variety-induced complexity cost factors and evaluated the usefulness of each factor in the case study.…”

Section: Literature Reviewmentioning

confidence: 99%

Variation architecture for reducing unnecessary variants in modular product family design by domain mapping and variant-level planning

Lim

Hong

2022

Concurrent Engineering

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One of the major challenges in variety management of modular product families is to prevent continuously generated variants of design elements. This paper aims to provide guidance on how manufacturing companies can reduce a large number of variants that have already increased from the existing product architectures. This paper introduces a new concept of architecture named variation architecture ( VA) in which relationships between variants in the market, design, and production domains are arranged explicitly for planning variety of a modular product family. Since the VA includes two perspectives which are domain mapping and variant-level planning, it can help companies to systematically establish complex relationships between variants across the domains. This paper describes elements of the three domains, relationship types between elements, and four categories of relationship rules called management rules at the variant-level planning. A framework is proposed for reducing variants through the VA to demonstrate its applicability. In the case study, we apply the framework to a front chassis family having a large number of variants and show that the VA significantly reduces unnecessary variants compared to the currently being produced.

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Bibliometrics and Citation Analysis of the Works of Professor Forza

Aichner,

Hyunh

2023

Mass Customization and Customer Centricity

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Identifying variety-induced complexity cost factors in manufacturing companies and their impact on product profitability

Cited by 8 publications

References 72 publications

Identifying profitable reference architectures in an engineer-to-order context

Identifying profitable reference architectures in an engineer-to-order context

Variation architecture for reducing unnecessary variants in modular product family design by domain mapping and variant-level planning

Bibliometrics and Citation Analysis of the Works of Professor Forza

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