Modular design of product families for quality and cost

Abstract

The purpose of this article is to help managers early in the design of new product families. Based on product structures, sales forecasts, and constraints imposed by the marketplace, like quality and cost, the proposed method selects the product modules that meet customer requirements for the products, while respecting those constraints. The proposal includes a single-level module design formulation that considers quality and cost simultaneously. The method for testing the proposed algorithm is based on a case study of an electro–mechanical assembly device (headlamp). The performance of the algorithm is compared to that of the zero module case, where often the constraint problem cannot be resolved. The main result is a model and an algorithm that optimise quality and cost under the constraints of quality and cost. It shows what modules to manufacture, in what quantities, and in which products to use them. The output also provides the predicted quality and cost, based on improvements made to the modules. To conclude, this research enables the joint optimisation of quality and cost by defining the modules to be manufactured. It provides input for managers seeking modules designed for their supply chain. The algorithm provides key input for managing production ramp-up.