The Module Design Problem

Abstract

In general, the first decision to be made is the manufacturer’s decision which functions he is able and willing to offer to the customers. On the one hand this is a technical question since a provider of drills does not easily change his production program to 5-axis mills Also, the manufacturing processes for which customers utilize the offered machines, determine to a great extent which functions are needed. The machine tool consists of a number of modules, which enable the machine to execute certain functions. We will refer to the modules as “containing” these functions. The overall strategic decision to be made is to select the overall scope of the products the machine tool manufacturer will offer. Guidances for this decision are general strategies like focusing on core competencies for in-house produced parts and developing strategic alliances for purchased components. A method frequently deployed to evaluate the customers’ preferences and that is frequently deployed for the design of new products is conjoint analysis. Green and Srinivasan, in their 1978 and 1990 articles, give a comprehensive overview of the relevant literature, techniques, reliability issues and applications of this marketing method. The decision on offered functions determines the number and kind of functions the manufacturer needs to develop and to design into modules. We assume that this decision which functions to offer has already been decided on.