Skip to main content
Log in

Flexible platform component design under uncertainty

  • Published:
Journal of Intelligent Manufacturing Aims and scope Submit manuscript

Abstract

Incorporating flexibility into product platforms allows manufacturers to respond to changing market needs with a minimal increase in product family complexity and investment cost. To successfully design a flexible product platform, proper design of flexible platform components is critical. These components can be described as “cousin” parts as they are neither completely unique nor completely common among variants. In this paper, a multidisciplinary process for designing flexible product platform components is introduced, assuming the platform component is decided a priori. The design process starts with identification of uncertainties and generation of multiple design alternatives for embedding flexibility into the component. Design alternatives are then optimized for minimum cost, while satisfying the component performance requirements. The flexible designs are then evaluated for economic profitability under identified uncertainty, using Monte Carlo simulation. At the end, the most profitable flexible component design is selected. The proposed design process is demonstrated through a case study, in which different flexible designs are generated and optimized for an automotive floor pan, an essential element of most vehicle product platforms. Results suggest that the way in which the flexibility is incorporated in the component, production volume trends, and the degree of built-in flexibility are important factors to consider when designing flexible product platforms.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Abbreviations

c :

Total unit cost of the component

c a :

Unit assembly cost of a component

c f :

Unit fabrication cost of a component

C :

Total variable cost for a design alternative

CF :

Cash flow

D h :

Historical demand

D o :

Initial demand

E[D]:

Expected demand

E[NPV]:

Expected net present value

F :

Set of economic variables

J :

Set of performance variables

k L :

Total line investment cost

k T :

Total tooling investment cost

K :

Total capital investment cost

L :

Length of the floor pan

M :

Mass of the floor pan

NPV :

Net present value

N S :

Number of simulation runs

p :

Number of uncertain parameters

q :

Number of component variants

r :

Discount rate

T :

Lifetime of the product platform

T F :

Total number of future time periods

T H :

Total number of historical time periods

u :

Individual uncertainty

U :

Set of uncertainties

v :

Individual design alternative

V :

Set of design alternatives

w :

Number of welding connections

x L :

Geometric design vector for long floor pan

x s :

Geometric design vector for short floor pan

Y :

Total number of design alternatives

α :

Drift coefficient

ε :

Random variable ~N(0,1) normally distributed

δ :

Bending stiffness

σ :

Volatility coefficient

τ :

Torsional stiffness

References

  • Black F., Scholes M. (1973) The pricing of option and corporate liabilities. Journal of Political Economy 81: 637–654

    Article  Google Scholar 

  • Bremmer, R. (1999) Cutting edge platforms. Financial Times Automotive World, September, 30–38.

  • Cook H.E. (1997) Product management: Value, quality, cost, price, profit and organization. Chapman & Hall, New York, NY

    Google Scholar 

  • de Neufville R. (1990) Applied systems analysis: Engineering planning and technology management. McGraw-Hill, New York, NY

    Google Scholar 

  • de Weck, O., Suh, E. S., & Chang, D. (2003). Product family and platform portfolio optimization. Proceedings of the 2003 Design Engineering Technical Conference, September 2–6, 2003, Chicago, Illinois, USA, DETC2003/DAC-48721.

  • ESD Symposium Committee (2002). Engineering systems research and practice. ESD Internal Symposium, May 29–31, 2002, Massachusetts Institute of Technology, Cambridge, MA.

  • Fellini, R., Kokkolaras, M., Michelena, N., Papalambros, P., Saitou, K., Perez-Duarte, A., & Fenyes, P. A. (2002). A sensitivity-based commonality strategy for family products of mild variation, with application to automotive body structures. Proceedings of the 9th AIAA/ISSMO Symposium on Multidisciplinary Analysis and Optimization, September 4–6, 2002, Atalanta, Georgia, USA, AIAA-2002–5610.

  • Georgiopoulos, P., Fellini, R., Sasena, M., & Papalambros, P. Y. (2002). Optimal design decisions in product portfolio valuation. Proceedings of 2002 Design Engineering Technical Conference, September 29–October 2, 2002, Montreal, Canada, DETC2002/DAC-34097.

  • Kidd, S. L. (1998). A systematic method for valuing a product platform strategy. LFM Master Thesis. Massachusetts Institute of Technology, Cambridge, MA.

  • Li H., Azarm S. (2000) Product design selection under uncertainty and with competitive advantage. Journal of Mechanical Design 122(4): 411–418

    Article  Google Scholar 

  • Li H., Azarm S. (2002) An approach for product line design selection under uncertainty and competition. Journal of Mechanical Design 124(3): 385–392

    Article  Google Scholar 

  • Martin M.V., Ishii K. (2002) Design for variety: Developing standardized and modularized product platform architectures. Research in Engineering Design 13(4): 213–235

    Google Scholar 

  • Meyer M.H., Lehnerd A.P. (1997) The power of product platforms: Building value and cost leadership. The Free Press, New York, NY

    Google Scholar 

  • Nelson S.A. II, Parkinson M.B., Papalambros P.Y. (2001) Multicriteria optimization in product platform design. Journal of Mechanical Design 123(2): 199–204

    Article  Google Scholar 

  • Pine B.J. (1993) Mass customization: The new frontier in business competition. Harvard Business School Press, Boston, MA

    Google Scholar 

  • Robertson D., Ulrich K. (1998) Planning product platforms. Sloan Management Review 39(4): 19–31

    Google Scholar 

  • Sanderson S.W., Uzumeri M. (1997) Managing product families. Irwin Professional Publication, Chicago, IL

    Google Scholar 

  • Sethi A.K., Sethi S.P. (1990) Flexibility in manufacturing: A survey. The International Journal of Flexible Manufacturing Systems 2: 289–328

    Article  Google Scholar 

  • Simpson T.W., Maier J.R.A., Mistree F. (2001) Product platform design: Method and application. Research in Engineering Design 13(1): 2–22

    Article  Google Scholar 

  • Trigeorgis L. (1996) Real options: Managerial flexibility and strategy in resource allocation. The MIT Press, Cambridge, MA

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Olivier de Weck.

Additional information

D. Chang was retired from General Motors R & D

Rights and permissions

Reprints and permissions

About this article

Cite this article

Suh, E.S., de Weck, O., Kim, I.Y. et al. Flexible platform component design under uncertainty. J Intell Manuf 18, 115–126 (2007). https://doi.org/10.1007/s10845-007-0008-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10845-007-0008-x

Keywords

Navigation