Balancing Marketing and Manufacturing Objectives in Product Line Design

[+] Author and Article Information
Jeremy J. Michalek

Department of Mechanical Engineering, Carnegie Mellon University, Pittsburgh, PA 15213jmichalek@cmu.edu

Oben Ceryan

Department of Mechanical Engineering, University of Michigan, Ann Arbor, MI 48109oceryan@umich.edu

Panos Y. Papalambros

Department of Mechanical Engineering, University of Michigan, Ann Arbor, MI 48109pyp@umich.edu

Yoram Koren

Department of Mechanical Engineering, University of Michigan, Ann Arbor, MI 48109ykoren@umich.edu

J. Mech. Des 128(6), 1196-1204 (Dec 14, 2005) (9 pages) doi:10.1115/1.2336252 History: Received February 24, 2005; Revised December 14, 2005

The product development process involves communication and compromise among interacting and often competing objectives from marketing, design, and manufacturing perspectives. Methods for negotiating these perspectives play an important role in the process. For example, design for manufacturing (DFM) analyses aim to incorporate manufacturing requirements into product design decision making to reduce product complexity and cost, which generally increases profitability. However, when design characteristics have market consequences, it is important to quantify explicitly the tradeoffs between the reduced cost and reduced revenue resulting from designs that are less expensive to manufacture but also less desirable in the marketplace. In this article we leverage existing models for coordinating marketing and design perspectives by incorporating quantitative models of manufacturing investment and production allocation. The resulting methodology allows a quantitative assessment of tradeoffs among product functionality, market performance, and manufacturing costs to achieve product line solutions with optimal profitability.

Copyright © 2006 by American Society of Mechanical Engineers
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Grahic Jump Location
Figure 1

A sequential product development process

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Figure 2

A concurrent process

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Figure 3

ATC coordination of marketing, engineering design, and manufacturing decisions

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Figure 4

Design variables of the dial-readout scale (from Michalek (9))




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