Cost Optimization of Product Families using Analytic Cost Models

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

Abstract

This paper presents a new method for analysing the cost structure of a mass customized product family. The method uses linear regression and backwards selection to reduce the complexity of a data set describing a number of historical product configurations and incurred costs. By reducing the data set, the configuration variables which best describe the variation in product costs are identified. The method is tested using data from a Danish manufacturing company and the results indicate that the method is able to identify the most critical configuration variables. The method can be applied in product family redesign projects focusing on cost reduction to identify which modules contribute the most to cost variation and should thus be optimized.
Original languageEnglish
Title of host publicationProceedings of The Ninth Norddesign Conference, 2012
Number of pages8
Publication date2012
ISBN (Print)978-87-91831-51-5
Publication statusPublished - 2012
EventThe Ninth Norddesign Conference, 2012 - Aalborg, Denmark
Duration: 22 Aug 201224 Aug 2012

Conference

ConferenceThe Ninth Norddesign Conference, 2012
CountryDenmark
CityAalborg
Period22/08/201224/08/2012

Cite this

Brunø, T. D., & Nielsen, P. (2012). Cost Optimization of Product Families using Analytic Cost Models. In Proceedings of The Ninth Norddesign Conference, 2012
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abstract = "This paper presents a new method for analysing the cost structure of a mass customized product family. The method uses linear regression and backwards selection to reduce the complexity of a data set describing a number of historical product configurations and incurred costs. By reducing the data set, the configuration variables which best describe the variation in product costs are identified. The method is tested using data from a Danish manufacturing company and the results indicate that the method is able to identify the most critical configuration variables. The method can be applied in product family redesign projects focusing on cost reduction to identify which modules contribute the most to cost variation and should thus be optimized.",
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Brunø, TD & Nielsen, P 2012, Cost Optimization of Product Families using Analytic Cost Models. in Proceedings of The Ninth Norddesign Conference, 2012. The Ninth Norddesign Conference, 2012, Aalborg, Denmark, 22/08/2012.

Cost Optimization of Product Families using Analytic Cost Models. / Brunø, Thomas Ditlev; Nielsen, Peter.

Proceedings of The Ninth Norddesign Conference, 2012. 2012.

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review

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T1 - Cost Optimization of Product Families using Analytic Cost Models

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AU - Nielsen, Peter

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N2 - This paper presents a new method for analysing the cost structure of a mass customized product family. The method uses linear regression and backwards selection to reduce the complexity of a data set describing a number of historical product configurations and incurred costs. By reducing the data set, the configuration variables which best describe the variation in product costs are identified. The method is tested using data from a Danish manufacturing company and the results indicate that the method is able to identify the most critical configuration variables. The method can be applied in product family redesign projects focusing on cost reduction to identify which modules contribute the most to cost variation and should thus be optimized.

AB - This paper presents a new method for analysing the cost structure of a mass customized product family. The method uses linear regression and backwards selection to reduce the complexity of a data set describing a number of historical product configurations and incurred costs. By reducing the data set, the configuration variables which best describe the variation in product costs are identified. The method is tested using data from a Danish manufacturing company and the results indicate that the method is able to identify the most critical configuration variables. The method can be applied in product family redesign projects focusing on cost reduction to identify which modules contribute the most to cost variation and should thus be optimized.

M3 - Article in proceeding

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BT - Proceedings of The Ninth Norddesign Conference, 2012

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Brunø TD, Nielsen P. Cost Optimization of Product Families using Analytic Cost Models. In Proceedings of The Ninth Norddesign Conference, 2012. 2012