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Sridhar Kota A Metric for Evaluating Design

Associate Professor,
Mechanical Engineering and Applied Mechanics
The University of Michigan,
Commonality in Product Families
Ann Arbor, MI 48109
Many companies develop a market strategy built around a family of products. These
e-mail: kota@engin.umich.edu
companies regularly add new product variations to the family in order to meet changing
market needs or to attract a broader customer base. Although the core functionality
Kannan Sethuraman remains essentially unchanged across the products within a family, new functions, feature
Assistant Professor,
combinations and technologies are incorporated into each new product. If allowed to
School of Business Administration
grow unchecked, these component variations, commonly referred to as ‘‘complexity’’, can
The University of Michigan,
result in a loss of productivity or quality. The challenge lies in an effective management
Ann Arbor, MI 48109
of product variations in the design studio and on the manufacturing floor. The key is to
minimize non-value added variations across models within a product family without lim-
Raymond Miller iting customer choices. In this paper we discuss the factors that contribute to product
Research Assistant,
complexity in general, and present an objective measure, called the Product Line Com-
Mechanical Engineering and Applied Mechanics
monality Index, to capture the level of component commonality in a product family.
The University of Michigan,
Through our Walkman case study, we present a simple yet powerful method of bench-
Ann Arbor, MI 48109
marking product families1. This method gauges the family’s ability to share parts effec-
e-mail: ramill@engin.umich.edu
tively (modularity) and to reduce the total number of parts (multi-functionality).
关S1050-0472共00兲02704-5兴

Introduction and Motivation Related Research


In today’s competitive market environment, companies can no The need for product variety in the market place has increased
longer achieve success through the mass production of a limited substantially over the past decade. As such, considerable research
number of products. Companies competing in every segment of attention has been paid to the costs and benefits of offering high
consumer goods and services are pursuing aggressive product ex- product variety 关1,5兴. The impact of design decisions that are
pansion strategies—in particular, line extensions 关1兴. The U.S. made during the product development phase on a firm’s ability to
automobile industry nicely captures this phenomenon of ever in- offer high product variety has also attracted much research inter-
creasing product variety 关2,3兴. Carmakers using a platform ap- est 关6,7兴.
proach design the essential features of a family of cars at the same Previous research 关8兴 observe that the unit costs for multi-item
time, instead of one model at a time. Our experience suggests that lines can be 25% to 45% higher than the theoretical cost of pro-
in many instances, although the system functionality remains es- ducing only the most popular item in the line. Two concepts that
sentially the same, the individual components share minimal de- can potentially benefit companies in economically providing the
sign and assembly features. The benefits of standardization are variety desired by the market are modularity and commonality.
widely known and most companies do standardize stock compo- Pine 关9兴 emphasizes that the best method to achieve mass cus-
nents such as fasteners. However, many companies are not yet tomization 共that is, to minimize costs while maximizing individual
standardizing their product-specific core components and thus fail customization兲 is through creating modular components that can
to reap significant benefits in quality and cost. We believe that by be configured into a wide variety of end products or services. In
standardizing the functional features, regardless of size variations, their discussion of modular design, Ulrich and Tung 关10兴 recom-
mend the use of common design modules and packages. This
and by developing a concurrent reconfigurable tooling design,
would help companies to achieve faster completion of design
much of the non-value added complexity could be minimized. The
projects and reduce costs. Companies such as Toyota and Sony
first step is to identify a set of functional building blocks across
have successfully been applying the principles of modularity to
the family of products in a manner that clearly identifies a core
help keep their design and build complexity to a minimum 关11兴.
design. The strategy for compiling a core set of design building Standardizing components is expected to save development
blocks is to analyze the existing designs, understanding the pack- costs, tooling costs, administrative expenses and development
aging constraints, material and manufacturing constraints and er- time. Ulrich 关7兴 presents an excellent analysis of the potential
gonomic constraints. Then seek common functional design fea- linkages between the architecture of a product and product vari-
tures based on configuration similarities 共geometric shapes and ety. He also notes that sometimes, in an effort to standardize,
feature layout兲, kinematic similarities 共joint types and motion兲, firms will use a component with excess capability for a particular
actuation and sensing similarities, etc. application. For example, a standard power supply may provide
In this paper we analyze the factors that contribute to product slightly more power than is strictly necessary in a particular ap-
complexity in general and suggest robust design/manufacturing plication. However, a firm may choose to adopt the standard com-
strategies that can help minimize non value-added variation across ponent even though the unit cost is higher than that of a compo-
models within a product family without limiting customer nent more closely matched to the application.
choices. We then propose an objective measure to capture the To exploit the benefits of commonality while generating highly
level of part commonality in a product family. differentiated end products, many firms are moving towards a
family approach to product development. Many researchers
1
Many researchers in the past, including Sanderson and Uzumeri 关4兴, have used 关12–19兴 have examined the benefits of component commonality
the term ‘‘product family’’ to refer to a set of related products that are characterized interms of reduced component inventory and improved service
by a high level of similarity in their functionality and in the potential to share
components, subassemblies, and production processes.
levels.2
Contributed by the Design Theory and methodology Committee for publication in
the Journal of Mechanical Design. Manuscript received Jun. 1998. Associate Tech- 2
Vakharia et al. 关20兴 provide a detailed overview of the existing literature on parts
nical Editor: J. Cagan. commonality.

Journal of Mechanical Design Copyright © 2000 by ASME DECEMBER 2000, Vol. 122 Õ 403
Methodology Table 1 Features across various models of Sony Walkman

Product Differentiating Components—Definition. In a


given product family, each product will have a unique set of func-
tions to appeal to the targeted market segments. The set of func-
tions may include certain unique functions and/or a unique com-
bination of functions that are different from those offered by its
siblings. However, there will be certain ‘‘basic functions’’ that all
products within a product family share 共these are the very func-
tions that justify grouping the products as a ‘‘family’’兲. All physi-
cal components and sub-assemblies that serve the basic functions
which are common to two or more products within a family are
expected to have the same physical characteristics. On the other
hand, physical components and sub-assemblies that contribute to a
product differentiating function may be different in their physical
character when compared to their counterparts in other siblings. In
fact, ‘‘counterparts’’ do not even exist if the function in question
is new and unique to that particular product within the family of
products. Such components are termed product differentiating.
Factors Influencing the Proliferation of Non-Product Differ-
entiating Components. We believe that non-value added de-
sign variations arise primarily due to one or more of the following
reasons:
• Geometric variations to accommodate packaging constraints
that are specific to a given model.
• Introduction of different technologies across models.
• Idiosyncrasies of different product teams.
Of the three listed above, the first two can be somewhat justi-
fied, although to a lesser extent than is usually claimed. The third tures, some may have additional product differentiating features.
reason cannot be justified at all and therefore every effort should These features may be related to the primary features, such as
be made to eliminate the non-value adding design variations aris- Auto-Reverse; or unrelated, such as a clock. Table 1 summarizes
ing due to product development team idiosyncrasies. Other pres- various features offered on some of the Sony Walkmans. Figure 1
sures on designers, such as evershortening product development illustrates the function diagram for a typical walkman that we
lead times, may influence a design to stray from the optimal. examined. Figure 2 shows the parts inside the Sony product fam-
While efforts should still be made, amidst these pressures,3 to ily that we studied.
eliminate non-value added variation, such pressures are admit- A designer developing a new product family 共or adding a new
tedly a fact of today’s competitive product development product to an existing family兲 must first begin with a detailed
environment. function diagram of each model in the product family. The func-
tional configuration of a new product must be developed from the
Design Methodology for Component Standardization. needs identified through market research. When all functions are
What seems to be lacking in this struggle to gain control of prod- described at the same high level of abstraction, it provides a com-
uct proliferation is a methodology to design a family of products. mon ground for comparing alternate designs 关21–23兴. It is then
Even more fundamentally, a way to measure commonality across the responsibility of the product development teams to identify
models is required to capture the extent to which a company is physical embodiments for each function. If adding a new product
eliminating non-value-adding proliferation. Such a metric would to an existing family, the team must not reinvent these embodi-
also aid in benchmarking a firm’s initiative towards this goal with ments, but should pull from the existing designs. Only in the case
the best in the industry. Before we present our model for objective of new functions, distinct from all pre-existing functions, should
evaluation of commonality, we propose a methodology for new parts be designed. Additionally, these parts must be devel-
standardization.
The first step towards standardization is to develop a complete
function diagram. A function diagram captures the various func-
tions that a system has to perform. A function just describes
‘‘what to accomplish’’ without any reference to ‘‘how to accom-
plish’’ the task. Naturally, functions of a system can be classified
as primary and auxiliary 共secondary and tertiary兲 functions. Each
function can be divided into various sub-functions and so on,
hierarchically, until a physical component is identified with each
sub-function. In other words, a network of functions required to
fulfill a given task would serve as a skeletal design, representing
all that needs to be accomplished. We can also think of a product
on the level of its features, which directly map to a set of func-
tions. For instance, if we consider a Walkman radio/cassette
player, one can readily identify some of the primary features as i兲
Play, ii兲 Stop, iii兲 Fast-Forward, iv兲 Eject, v兲 AM Radio, and vi兲
FM Radio. While most Walkmans share the same primary fea-

3
In fact, modular principles that tend to decrease non-value added variety 共such as
the reuse of common design modules兲, have become an enabler of reduced product Fig. 1 Function diagram of non-product differentiating func-
development cycles. tions of a walman cassette player

404 Õ Vol. 122, DECEMBER 2000 Transactions of the ASME


Fig. 2 Four of many members of the Sony Walkman family of products demonstrating 87% part commonality
in non-product differentiating functions. FX-221 costs about twice as much as EX-122 in retail market. „See
Tables 1 and 2…

oped to conform to the framework of existing functional and with development, a lack of economies of scale, etc. However, not
physical configurations. all design variations are treated equally by the manufacturer. De-
While this procedure may seem to stifle creativity on the level pending on the production capabilities of the manufacturer, cer-
of component design, creativity is now required to integrate dif- tain types of product variation lead to a greater increase in costs
ferentiating components with common architecture. It is not ben- than the others. Therefore, when we speak of the cost of product
eficial to simply be creative in generating new design concepts. design complexity, we must do so in the context of a manufactur-
New designs must occur with minimum changes to the existing ing facility. For instance, let us consider two different parts be-
configuration. More importantly, if some component or subassem- longing to the same product family, produced on the same pro-
bly does not help in differentiating a product then it requires no duction line but differing in one of the size dimensions. If the
reinventing. A design already exists for this component within the manufacturing method used were stamping, a change-over would
same product family. involve only a simple indexing of the right size tool in real time to
As we have stated above, one of the vital performance mea- accommodate the different part sizes. Whereas, if the parts were
sures of the product development effort is resource productivity. injection molded, the same change in dimension from one part to
This can be defined as the level of resources that are required to
another may require changing dies. This would be a much more
take the project from concept to market. In order to increase re-
time-consuming task when compared to automatically indexing
source productivity, it is imperative that firms conserve their ef-
a stamping tool. This serves to illustrate that it is difficult to
forts by seeking ingenious ways to share designs of non-
differentiating features across models. map variations in product features to increases in manufacturing
When designing a new family, the product development team cost in the absence of information about the capabilities of the
should study each function across the entire product family. The manufacturing facility and the process by which the parts are
goal is to standardize as many components as possible for those manufactured.
functions that are common to the entire family. The design team Some of the major factors which influence the ease or difficulty
should evaluate each function in terms of: with which a certain product design change can be handled in a
given manufacturing facility are:
1 ‘‘How’’ the function is implemented, namely the working
principle, • Material handling system,
2 The number of components required to perform the function, • Level of reconfigurability of tooling
and, • Part size-dunnage and space requirements
3 The different types of components that are used in each de- • Level of automation
sign • Universal grippers
• Worker training and skill levels
• Geometry 共size and shape variations兲 • Equipment maintenance schedules
• Material differences across models • Compatibility of newer operations with existing operations
• Manufacturing processes by which the parts are going to be etc.
made
• Fastening and joining methods 共type and number of fasten- In fact, the product must be designed in concert with the
ers, methods such as soldering, welding and adhesives etc.兲 capabilities/limitations of the selected manufacturing process.
• Mechanisms Therefore in order to reap maximum benefits from a manufac-
• Actuation methods 共electro-mechanical, pneumatic, and hy- turing system, we stress the importance of the following attributes
draulic etc.兲 being common across all products within a family:
• Sensors 共Type of sensors: optical, pressure etc.兲 • Manufacturing methods
4 Vendor base • Part locators and reference surfaces
5 Number and type of secondary operations required. • Manufacturing and assembly related features
• Fastening and joining schemes
Cost of Complexity. The use of standard components typi- • General spatial orientation of the product features
cally helps in lowering the complexity, cost and lead-time of
product development. From the product design and development Definition of Complete Commonality Across Models. As-
point of view, any variation in design leads to increased cost due pects that differentiate members of a product family may include
to an increase in quality assurance testing, uncertainties associated a set of components and/or characteristics that influence the per-

Journal of Mechanical Design DECEMBER 2000, Vol. 122 Õ 405


formance. They may also include augmenting features, safety fea- f2i⫽Materials and manufacturing processes factor for compo-
tures, aesthetic appeal, and reliability as reflected in the warranty nent i
information. f3i⫽Assembly and fastening schemes factor for component i
Conformance quality is the traditional definition of quality such Substituting the values of CCIi , MaxCCIi and MinCCIi in the
as the one given by Taguchi: Every product delivers the target expression for PCI, we obtain the following formula for product
performance each time the product is used, under all intended line commonality index:
operating conditions, and throughout its intended life with no
harmful side effects.
Firms should strive to standardize all component characteristics P P
1
that neither help in differentiating a product nor influence the
conformance quality of a product. The component characteristics
兺 n ⫻f
i⫽1
i 1i ⫻ f 2i ⫻ f 3i ⫺ 兺n
i⫽1
2
i
that we consider here are its geometry, size, manufacturing PCI⫽ P ⫻100 (2)
1
method, and fastening and joining methods. In other words, we
say that complete commonality across products within a product
共 P⫻N 兲 ⫺ 兺n
i⫽1
2
i
family is achieved if all component characteristics that are 1兲 non-
product differentiating, and 2兲 non-influencers of conformance
The three factors f1i , f2i , and f3i are assumed to be independent
quality, have been standardized.
of one another and the PCI score is expressed as a percentage and
Product Line Commonality Index „PCI…. As we strive to takes values between 0 and 100. A PCI score of 0 indicates that
compare different manufacturers on their efforts towards stan- none of the non-differentiating parts are shared across models, or
dardizing components across models, we would like to have an if they are shared, their sizes/shapes, materials/manufacturing pro-
objective measure to capture the existing differences in product cesses, and assembly processes are all different. A perfect score of
design strategies. One simple metric would be the percentage of 100 would indicate that all the non-differentiating parts are shared
components that are common across a product family. However, across models and that they are of identical size and shape, made
such a metric would over-look the degree of differentiation in a using the same material and manufacturing process, and the fas-
product family, penalizing those families that have a broader fea- tening methods used are identical.
ture mix. The degree to which products in a family are differen- When computing the PCI, the first step is to sort through all of
tiated is a marketing strategy decision, and thus beyond the scope the components and determine which are non-product differenti-
of our metric. Rather, we seek a metric that only penalizes those ating. These are the only components considered for the PCI.
differences that should ideally be common, given the product mix. Tables 2, 3, and 4 show calculations of the PCI for three Walkman
In developing this measure of commonality, we considered the product families. Each row in these tables represents one compo-
following factors: nent, i, that is non-product differentiating, and may be shared
across different members of the family. A component is termed,
• The number of different types of components that can be ‘‘shared’’ if it is present in more than one model, and it performs
ideally standardized across models 共i.e., those that are non- the same core function. Such a component is not necessarily iden-
product differentiating and non-influencers of conformance tical from model to model. It can potentially vary in size, shape,
quality兲, material, or fastening method, as described below.
• Geometric features of components in terms of their sizes and For each component i, we determine the component common-
shapes, ality index 共CCI兲. This measure captures two important pieces of
• Materials used across these components, information:
• Manufacturing processes that were used for their production,
and, 1 The extent to which the family shares architecture for the
• Part assembly and fastening schemes that were used. functions represented by component i, and
2 The extent to which the size, shape, materials, manufacturing
We define Product Line Commonality Index 共PCI兲 as follows: process and assembly methods are shared across the product
family.
P P


i⫽1
CCIi⫺ 兺 MinCCI
i⫽1
i
When ni⫽N, the function that maps to component i is accom-
plished using the same architecture in all models. However, if ni
PCI⫽ P P ⫻100 (1) ⬍N, this implies that the function 共that component i maps to兲 is
兺 MaxCCI ⫺ 兺 MinCCI
i⫽1
i
i⫽1
i
performed with a different set of components in at least one
model, and thus the architecture is different. In order to capture
the size, material and assembly variations of the component across
models, we have introduced the three factors f1i , f2i , and f3i . The
where,
size factor, f1i , is computed as the ratio of the greatest number of
CCIi⫽Component Commonality Index for component i models that share component i with identical size and shape to the
⫽ni⫻f1i⫻f2i⫻f3i greatest possible number of models that could have shared the
MaxCCIi⫽Maximum possible Component Commonality Index component i with identical size and shape 共namely, ni兲. Ideally, if
for component i ⫽ N in all models that share component i, the component is identical in
size and shape, then the size factor f1i would equal 1. On the other
MinCCIi⫽Minimum possible Component Commonality Index hand, if no two models in the family have this component identi-
for component i ⫽ cal in size and shape, then the size factor f1i would take its lowest
1 1 1 1 value 共namely, 1/ni兲. The other two factors, f2i and f3i , are deter-
n i⫻ ⫻ ⫻ ⫽ 2 mined in a similar manner.
n i ni n i n i
When calculating the PCI, in order to gain values between 0
P⫽Total number of non-differentiating components that can and 100 we subtract the minimum possible value of the CCI and
potentially be standardized across models normalize by the maximum possible value of the CCI. The mini-
N⫽Number of products in the product family mum value occurs when each of the size/shape, materials, and
ni⫽Number of products in the product family that have com- assembly factors take on their lowest value. In this case, CCIi
ponent i ⫽ni⫻1/ni⫻1/ni⫻1/ni⫽1/ni2. The maximum value occurs when
f1i⫽Size and shape factor for component i f1i , f2i , and f3i have a value of 1, and the component is present in

406 Õ Vol. 122, DECEMBER 2000 Transactions of the ASME


Table 2 PCI table for Sony Walkman family „including FX-101, EX-122, FX-221,
FX-321…

each of the family members (ni⫽N). In this case, CCIi⫽N. each member of the family were the same, then ni 共in the 3rd
Tables 2, 3, and 4 show tabulated calculations of the PCI for each column of the PCI Table兲 would always be equal to N.
of three Walkman product families. This analysis of product line commonality using the PCI cap-
The closer the PCI index is to 100, the better are the firm’s tures the differences in component level commonality observed in
efforts towards a value optimizing design. In the case of Sony’s the same product family across three different manufacturers. The
family of Walkmans 共not including Sports models兲, the PCI was differences in the level of commonality of components across
determined to be 87.0 共see Table 2兲, for the RCA family of prod-
these product families should account for some very significant
ucts, it was determined to be 38.4 共see Table 3兲, and for Radio
Shack, it was 43.5 共see Table 4兲. To give the PCI an intuitive differences in the product development costs and quality of these
appeal, we can think of it as the percentage of non-product differ- products. In the case of Sony, sharing as many as 87% of the
entiating components that are identical. We can say that Sony non-product differentiating components between the low-end
achieves 87% commonality in non-product differentiating compo- 共$27兲 and the high-end 共$90兲 models should ensure not only
nents, while Radio Shack and RCA achieve roughly 40% com- higher quality across products, but also enable them to lower their
monality for non-product differentiating components. If we weigh overall development costs.
this information together with the total number of components in
the product family, we can begin to assess the relative impact that Validation. The objective of the PCI is to provide a percent
a change in the PCI value would have in terms of manufacturing common of non-differentiating components. It is tempting to do
and development costs. away with PCI, a seemingly complex metric, and employ a
We make no assumption or precondition that the PCI be applied straight forward measure of percent of components that are com-
only to families with uniform architecture. The core function mon across a product line. The difficulty with such oversimplifi-
which comes from the function diagram describe ‘‘what to ac- cation lies in defining what is ‘‘common’’? Is a component ‘‘com-
complish’’ without reference to ‘‘how to accomplish.’’ Thus, the mon’’ if it is present in two of the five family members? Or does
core function is independent of architecture. If the architecture of it have to be present in all five? An added level of complexity in

Journal of Mechanical Design DECEMBER 2000, Vol. 122 Õ 407


Table 3 PCI table for RCA Walkman family „including RP-1800, RP-1810, RP-1820, RP-1875,
RP-1880…

the metric is required to ‘‘scale’’ the level of commonality, address the tradeoffs between commonality and the total number
depending on how many members of the family share the of parts. The issues are complex and necessarily specific to the
component. particular product and manufacturing system. However, the nor-
The PCI table groups information that is more valuable than malized PCI presented here can give an indication as to how well
simple quoting of a percentage. This accounts for the inclusion of a particular firm’s strategy is working when compared to compet-
the factors f1 , f2 , and f3 . In the most straight forward approach, ing firms.
two parts would be considered common if they had identical size, Generally, a modular design tends to have more components
geometry, and material. Otherwise, they would be uncommon. than a multi-functional design performing the same overall func-
However, by splitting up the ‘‘common-ness’’ of parts into three tion. The modular design will also tend to be more suited for
categories, it gives more information to the user. A glance at the
sharing parts across products. On the other hand, a product family
PCI table will not only tell the user that, for example, their PCI
designed on the basis of multi-functional design principles will
ranks low in comparison to a competitor’s, but also that they can
target improvement activity on a specific aspect such as fastening tend to have fewer common parts across models that are less
and assembly scheme, or architecture. suited for sharing. An optimum balance exists between the func-
tional content that each part should have and the level of com-
Benchmarking Through Normalized Product Line Com- monality that should exist across products within a product fam-
monality Index. In order to benchmark one company’s efforts ily. The ultimate goal of any product development team is not
towards an increased sharing of components across products only to maximize the level of shared parts across models but also
within a product family with the efforts of another company, we to effectively control the number of parts per product. Fewer parts
need to consider both the product line commonality index 共PCI兲 per product results in fewer part management related transactions
and also the total number of components that are present in each and thereby minimizes the level of complexity faced on the shop
of the products under consideration. It is important to remember floor. This is the rationale for normalizing the PCI index for the
that it is difficult to identify a generic strategy that can adequately number of parts that are used in each of the models.

408 Õ Vol. 122, DECEMBER 2000 Transactions of the ASME


Table 4 PCI table for Radio Shack Walkman family „including Table 5 Comparison of product line strategies for Sony, RCA,
14-1202, 14-1216, 14-1218, 14-1227… and Radio Shack

PCIj⫽Product line commonality index for the company j


Max共PCI兲⫽Maximum PCI value across all companies under
consideration
Numparts j ⫽Number of parts for the product family of com-
pany j
Min共Numparts兲⫽Minimum number of parts that are present
across all companies under consideration
From the above expression, we can see that a company would
have a high value for the normalized PCI if it has a high PCI and
a low number of parts. Table 5 shows values for the normalized
PCI for Sony, RCA, and Radio Shack.
Like the PCI, the normalized PCI is expressed as a percentage
and will take on values up to 100. We can say that a high value of
the normalized PCI means that the firm is doing well in its efforts
towards standardization and reduction of part numbers. Sony has
done the best across the three companies under consideration for
the specific set of products that we had studied. Radio Shack had
the worst score for the normalized PCI and it shows that they not
only had more part numbers than their counterparts, but also did a
poor job in standardizing these parts across models. There is an
intuitive feel to the normalized PCI value as well. For both the
PCI and the number of parts Radio Shack performs about twice as
‘‘poorly’’ as the best company, among those under consideration.
This compounds and gives a normalized PCI value of roughly 25
percent. These results are specific to the product families under
investigation and does not reflect the overall effectiveness of these
firms.

Closure
In this paper, we have analyzed the factors that contribute to
product complexity in general, and developed an objective mea-
sure to capture the level to which firms successfully share non-
product differentiating parts across products in a given product
family. The PCI measure provides designers with a method by
which they can benchmark their performance with the best in the
industry and it also highlights potential opportunities for improve-
ment in design efficiencies.

Acknowledgments
This study was supported by Ford Motor Company, Dearborn,
Michigan under the University Grants Program 共1997兲. The au-
thors would like to thank undergraduate seniors, Ms. Michelle
Lornz and Ms. Tara Greene, for their research assistance in diss-
section of several walkmans and preparation of PCI tables.

References
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