Research Papers: Design for Manufacturing

Resource Allocation for Lean Product Development Using a Value Creation Cell Model

[+] Author and Article Information
Tianyi Cai

Department of Mechanical and
Manufacturing Engineering,
University of Calgary,
Calgary, AB T2N 1N4, Canada
e-mail: bob.caity@gmail.com

Theodor Freiheit

Department of Mechanical and
Manufacturing Engineering,
University of Calgary,
Calgary, AB T2N 1N4, Canada
e-mail: tfreihei@ucalgary.ca

Contributed by the Design for Manufacturing Committee of ASME for publication in the JOURNAL OF MECHANICAL DESIGN. Manuscript received November 15, 2012; final manuscript received June 24, 2014; published online July 21, 2014. Assoc. Editor: Rikard Söderberg.

J. Mech. Des 136(10), 101701 (Jul 21, 2014) (12 pages) Paper No: MD-12-1562; doi: 10.1115/1.4027981 History: Received November 15, 2012; Revised June 24, 2014

Lean can be applied to product development processes to improve value creation management. However, allocating resources to a project or a development program in order to maximize the value generated by project activities can be difficult in complex product development processes. This paper discusses how value creation activities can be better managed by regulating the resource allocation process. A mathematical model is proposed to describe value growth and its application to resource allocation is demonstrated that gives insight into value creation trajectories. The application is demonstrated with scenarios developed from the computer industry and a design project.

Copyright © 2014 by ASME
Your Session has timed out. Please sign back in to continue.


Belliveau, P., Griffin, A., and Somermeyer, S., 2002, The PDMA Toolbook for New Product Development, Wiley, New York.
Ulrich, K. T., and Eppinger, S. D., 2008, Product Design and Development, 4th ed., McGraw-Hill/Irwin, New York.
McCarthy, I. P., Tsinopoulos, C., Allen, P., and Rose-Anderssen, C., 2006, “New Product Development as a Complex Adaptive System of Decisions,” J. Prod. Innovation Manage., 23(5), pp. 437–456. [CrossRef]
Bauch, C., 2004, “Lean Product Development: Making Waste Transparent,” Thesis, Massachusetts Institute of Technology and Technical University of Munich, Munich.
Chase, J. P., 1999, “Value Creation in the Product Development Process,” M.Sc. thesis Massachusetts Institute of Technology, Cambridge.
Locher, D. A., 2008, Value Stream Mapping for Lean Development: A How-To Guide for Streamlining Time to Market, Productivity Press, New York.
Millard, R., 2001, “Value Stream Mapping and Analysis for Product Development,” M.Sc. thesis, Massachusetts Institute of Technology, Cambridge, MA.
Letens, G., Farris, J. A., and Van Aken, E. M., 2011, “A Multilevel Framework for Lean Product Development System Design,” Eng. Manage. J., 23(1), pp. 69–85.
Reinertsen, D. G., 2009, The Principles of Product Development Flow, Celeritas Publishing, Redondo Beach, CA.
Emptage, W. J., Walsh, P. B., Georgiadis, P. A., and Summa, D. W., 2005, “Increasing the Value of Product Development,” McKinsey Quarterly, 2, pp. 179–181.
Ward, A. C., 2007, Lean Product and Process Development, Lean Enterprise Institute, Inc., Cambridge, MA.
Smith, R., and Morrow, J., 1999, “Product Development Process Modeling,” Des. Stud., 20(3), pp. 237–261. [CrossRef]
Verona, G., 1999, “A Resource-Based View of Product Development,” Acad. Manage. Rev., 24(1), pp. 132–142. [CrossRef]
Repenning, N. P., 2000, “A Dynamic Model of Resource Allocation in Multi-Project Research and Development Systems,” Syst. Dyn. Rev., 16(3), pp. 173–212. [CrossRef]
Joglekar, N. R., and Ford, D. N., 2005, “Product Development Resource Allocation With Foresight,” Eur. J. Oper. Res., 160(1), pp. 72–87. [CrossRef]
Heidenberger, K., and Stummer, C., 1999, “Research and Development Project Selection and Resource Allocation: A Review of Quantitative Modeling Approaches,” Int. J. Manage. Rev., 1(2), pp. 197–224. [CrossRef]
Yoshimura, M., Fujimi, Y., Izui, K., and Nishiwaki, S., 2006, “Decision Making Support System for Human Resource Allocation In Product Development,” Int. J. Prod. Res., 44(5), pp. 831–848. [CrossRef]
Cho, S.-H., and Eppinger, S., 2001, “Product Development Process Modeling Using Advanced Simulation,” Proceedings of the ASME 2001 Design Engineering Technical Conferences, Pittsburgh, PA, Sept. 9–12.
Cho, S.-H., and Eppinger, S., 2005, “A Simulation-Based Process Model for Managing Complex Design Projects,” IEEE Trans. Eng. Manage., 52(3), pp. 316–328. [CrossRef]
Fung, R. Y. K., Tang, J., Tu, Y., and Wang, D., 2000, “Product Design Resources Optimization Using A Nonlinear Fuzzy Quality Function Deployment Model,” Int. J. Prod. Res., 40(3), pp. 585–599. [CrossRef]
Fung, R. Y., Tang, J., Tu, P. Y., and Chen, Y., 2003, “Modelling of Quality Function Deployment Planning With Resource Allocation,” Res. Eng. Des., 14(4), pp. 247–255. [CrossRef]
Reich, Y., and Levy, E., 2004, “Managing Product Design Quality Under Resource Constraints,” Int. J. Prod. Res., 42(13), pp. 2555–2572. [CrossRef]
Browning, T. R., 2003, “On Customer Value and Improvement in Product Development Processes,” Syst. Eng., 6(1), pp. 49–61. [CrossRef]
Browning, T. R., 2000, “Value-Based Product Development: Refocusing Lean,” Proceedings of the 2000 IEEE Engineering Management Society, Albuquerque, NM, Aug. 13–15.
Womack, J., and Jones, D., 1996, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, Free Press, New York.
Cai, T., and Freiheit, T., 2011, “Lean Value Creation in the Product Development Process With the Principle of Set-Based Concurrent Engineering,” ASME Paper No. DETC2011-48693. [CrossRef]
Huthwaite, B., 2005, The Lean Design Solution, Institute for Lean Innovation, Mackinac Island, MI.
Shigley, J., and Mischke, C., 2001, Mechanical Engineering Design, McGraw Hill, Boston, p. 10.
Borgianni, Y., Cascini, G., and Rotini, F., 2010, “Process Value Analysis for Business Process Re-Engineering,” Proc. Inst. Mech. Eng., Part B, 224(2), pp. 305–327. [CrossRef]
Das, S. K., and Almonor, J. B., 2000, “A Concurrent Engineering Approach for the Development of Medical Devices,” Int. J. Comput. Integr. Manuf., 13(2), pp. 139–147. [CrossRef]
Sood, A., and Tellis, G. J., 2005, “Technological Evolution and Radical Innovation,” J. Mark., 69(3), pp. 152–168. [CrossRef]
Dubberly, H., 2008, “On Modeling - Learning Curves for Design,” Assoc. Comput. Mach. Interact., 15(4), pp. 13–16. [CrossRef]
Chang, Y. S., and Baek, S., 2010, “Limit to Improvement: Myth or Reality? Empirical Analysis of Historical Improvement on Three Technologies,” Technol. Forecast. Soc. Change, 77, pp. 712–729. [CrossRef]
Ahmadi, R., and Wang, R. H., 1999, “Managing Development Risk in Product Design Processes,” Oper. Res., 47(2), pp. 235–246. [CrossRef]
Asthana, P., 1995, “Jumping the Technology S-Curve,” IEEE Spectrum, 32, pp. 49–54. [CrossRef]
Charap, S., Lu, P.-L., and He, Y., 1997, “Thermal Stability of Recorded Information at High Densities,” IEEE Trans. Magn., 33(1), pp. 978–983. [CrossRef]
Maciejowski, J., 2002, Predictive Control With Constraints, Prentice Hall, Harlow, UK.
Bayless, G., 1984, “Magnetic Peripherals Inc. Turning Out Computer Components for AT&T,” The Oklahoman, May 3,1984, Archive ID: 183289.
Reimer, J., 2012, “Personal Computer Market Share: 1975-2005,” http://jeremyreimer.com/postman/node/329, last accessed Oct. 16, 2012.


Grahic Jump Location
Fig. 1

Conceptual model of value creation cell

Grahic Jump Location
Fig. 2

Value growth behavior with different e and p values

Grahic Jump Location
Fig. 3

Case examples of value growth fits

Grahic Jump Location
Fig. 4

Example of value growth model application to floppy disk technology

Grahic Jump Location
Fig. 5

Comparison of 5.25” floppy areal density target trajectory plan of Table 2 to historic density growth

Grahic Jump Location
Fig. 6

Optimal value growth for floppy disks areal density

Grahic Jump Location
Fig. 7

Optimal value growth with 50% premium on efficiency investment

Grahic Jump Location
Fig. 8

Year-to-year required increase in efficiency (no premium)

Grahic Jump Location
Fig. 9

Project 1 value growth with optimized manpower assignments

Grahic Jump Location
Fig. 10

Projects 2–5 value growth with optimized manpower assignments




Some tools below are only available to our subscribers or users with an online account.

Related Content

Customize your page view by dragging and repositioning the boxes below.

Related Journal Articles
Related eBook Content
Topic Collections

Sorry! You do not have access to this content. For assistance or to subscribe, please contact us:

  • TELEPHONE: 1-800-843-2763 (Toll-free in the USA)
  • EMAIL: asmedigitalcollection@asme.org
Sign In