Product Design: Subassemblies for Multiple Markets

Rutenberg, David P.; Shaftel, Timothy L.

doi:10.1287/mnsc.18.4.b220

Cited by 31 publications

(10 citation statements)

References 11 publications

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“…A product ‘portfolio’ is then the collection of products offered for sale by the organization in question 1 . Using these definitions, we can identify the product portfolio elements as the sum of all product functions and physical components (e.g., modules, parts) represented in the portfolio (Griffin, 1997a,b; Kaski and Heikkila, 2002; Mac Cormack and Rusnak, 2006; Rutenberg and Shaftel, 1971). Therefore, an increase in PPAC entails an increase in one or more of the three attributes of the product portfolio's elements: multiplicity, diversity, and interrelatedness.…”

Section: Definitionsmentioning

confidence: 99%

Product portfolio architectural complexity and operational performance: Incorporating the roles of learning and fixed assets

Jacobs

Swink

2011

J of Ops Management

136

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Managers struggle to cope with complexity in their product portfolios. However, research into diversification, product platforms, and other issues related to product portfolio complexity has often produced inconsistent guidance. This situation is at least partially attributable to an incomplete definition of portfolio complexity, and to corresponding limitations of theories applied to date. To address these limitations, we define product portfolio complexity as a design state manifested by the multiplicity, diversity, and interrelatedness of products within the portfolio. We conceptually establish the three‐dimensional nature of complexity and present a model to provide insights into how each dimension impacts operational performance. As an extension to prior theoretical perspectives, the model explicitly addresses the roles of organizational learning and the character of fixed assets (utilization and flexibility) as mediator and moderator of product portfolio architectural complexity's effects, respectively. We also incorporate the principle of diminishing returns to address potential non‐linearities in the proposed relationships. Prior theories and research studies have neglected these issues. We conclude by discussing useful perspectives with which to view the model, and by presenting measures of portfolio complexity and approaches for testing the propositions developed herein.

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Section: Definitionsmentioning

confidence: 99%

Product portfolio architectural complexity and operational performance: Incorporating the roles of learning and fixed assets

Jacobs

Swink

2011

J of Ops Management

136

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“…The benefits of component commonality for cost savings were first identified in the papers by Rutenberg [7] and Rutenberg and Shaftel [8]. They recognized the economies of scale in production from using a common product module for multiple products.…”

Section: Component Commonalitymentioning

confidence: 99%

Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality

Hamdi

Tadj

2019

MCA

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Component commonality is a well-known approach in manufacturing, where the same components are used for multiple products. It has been implemented by many established companies such as Airbus, Kodak, Toyota, etc. We consider a standard two-product inventory model with a common component. The demands for the products are independent random variables. Instead of the usual approach to minimize the total shortage quantity, we propose to minimize the total shortage cost. The resulting problem is a non-convex nonlinear mathematical program. We illustrate the use of a primal-dual proximal method to solve this problem by obtaining numerically the optimal allocations of components. In particular, we show that a higher unit shortage cost induces a higher allocation.

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“…The few quantitative studies typically apply optimization models to address manufacturing issues (cf. [1], [12]- [14], [35], and 7 [38]). Although these studies have contributed greatly to our understanding of modularity, they offer limited insights into how firms measure the degree of modularity embedded in product architectures.…”

Section: Overviewmentioning

confidence: 99%

Managing modularity of product architectures: toward an integrated theory

Hsuan

Gassmann

2003

IEEE Trans. Eng. Manage.

253

147

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The management of innovation through modular product architecture strategies is gaining increasing importance for firms, both in practice and theory. Modularity refers to a new product development strategy in which interfaces shared among components in a given product architecture are specified and standardized to allow for greater substitutability of components across product families. It is argued that the degree of modularity inherent in product architectures depends on the constituent components and interfaces. This paper introduces a mathematical model, termed the modularization function, for analyzing the degree of modularity in a given product architecture. It takes into account the following variables: components; degree of coupling; and substitutability of new-to-the-firm components. The application of the modularization function is illustrated with two elevator systems from Schindler-traction and hydraulic. The comparative analysis of the elevators captures the sensitivity and dynamics of product architecture modularity created by three types of components (standard, neutral, and unique) and two types of interfaces (fundamental and optional).

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Product Design: Subassemblies for Multiple Markets

Cited by 31 publications

References 11 publications

Product portfolio architectural complexity and operational performance: Incorporating the roles of learning and fixed assets

Product portfolio architectural complexity and operational performance: Incorporating the roles of learning and fixed assets

Augmented Lagrangian Approach to the Newsvendor Model with Component Commonality

Managing modularity of product architectures: toward an integrated theory

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