Determining module replacement timing of product for balancing quality and production cost
Year: 2013
Editor: Udo Lindemann, Srinivasan V, Yong Se Kim, Sang Won Lee, John Clarkson, Gaetano Cascini
Author: Jeong, Jae Hun; Kim, Daeyoung; Jang, Wooseok; Lee, Jihwan; Hong, Yoo S.; Park, yongtae
Series: ICED
Institution: Seoul national University, Korea, Republic of (South Korea)
Page(s): 407-416
ISBN: 978-1-904670-47-6
ISSN: 2220-4334
Abstract
As the world has entered the era of limitless competition, most manufacturing companies are trying to reduce the product cost using a modular design strategy. In this environment, the company frequently replaces the subcontractor of modules with other who offers cheaper production cost. Due to insufficient production experience of newly changed subcontractor, adopted module shows higher failure rate than original one. In result, it is important to consider quality cost with production cost. In this paper, we propose a model for determining optimal module replace timing considering both production cost and quality cost through numerical tests.
Keywords: Modular design, module replacement timing, product architecture, quality cost, production cost