Product variety causes complexity and problems The impacts of product variety on design, supply, and production processes were examined using system dynamics approach A practical tool was proposed to decide on the product variety in a bus production system A system dynamics model was proposed to analyze the impacts of product variety on design, supply, and production processes in a bus production company. Figure A shows the model map for the case company. Figure A. Model Map for the Case CompanyPurpose: Automotive manufacturers are trying to respond to their customers' increasing demands for product customization to stay competitive in the market. The increase in product diversity due to product customization causes some problems in business processes. This study was conducted to assist managers in examining and monitoring the possible impacts of increasing product variety on the other processes and deciding on the appropriate product variety level.
Theory and Methods:This study was carried out on a bus production facility, and a system dynamics model was developed that can analyze the impact of increasing product variety on design, supply, and production processes. Expert opinions were received through interviews, and historical data of the business were analyzed during the development process of the system dynamics model.
Results:Research results revealed that increasing product variety increases the design load, and has a positive impact on productivity and quality up to a certain level. However, managing diversity becomes difficult, and processes are negatively affected due to the increasing complexity after a certain stage. Using the proposed model, an optimal design load that maximizes the productivity was tried to be determined.
Conclusion:Besides the positive impacts of the increasing product variety on the market share, its' impacts on the production process should also be taken into consideration in the decision-making process. This study provided a model for decision makers to determine an appropriate design load level.