Incorporating customer personalization preferences in open product architecture design

Abstract

Open product architecture is a key enabler for product personalization, as it allows the integration of personalized modules in a product architecture to satisfy individual customer needs and preference. A critical challenge for integrating personalized modules into a product architecture is determining the optimal assembly architecture when considering market expectations and manufacturing constraints. In this paper, an optimization method is proposed for determining the personalized product design architecture that incorporates individual customer preferences. First, a decision hierarchy is presented to describe the integrated design decisions of the product architecture, including product variety determination, module variant selection, and personalized module configuration. Next, a profit model is formulated as an overall performance metric that incorporates customer preferences and manufacturing cost. The systematic patterns and randomness of diverse customer preferences are modeled by combining conjoint analysis and market segmentation with a multivariate normal mixture model. Individual customer product utilities in the target market and their product purchase intent probability are estimated through Monte-Carlo simulation, which is incorporated into the profit calculation. Manufacturing limitations on processes and materials are included as they influence manufacturer’s planning on candidate module variants and production strategies of personalized modules. These models are used to determine a product family architecture that maximizes profit by optimally determining its offering of product variants, module combinations, and personalized module configuration through a genetic algorithm. The proposed method is demonstrated by a personalized bicycle architecture design example.