Reducing the Total Product Cost at the Product Design Stage

Abstract

Currently used decision support systems allow decision-makers to evaluate the product performance, including a net present value analysis, in order to enable them to make a decision regarding whether or not to carry out a new product development project. However, these solutions are inadequate to provide simulations for verifying a possibility of reducing the total product cost through changes in the product design phase. The proposed approach provides a framework for identifying possible variants of changes in product design that can reduce the cost related to the production and after-sales phase. This paper is concerned with using business analytics to cost estimation and simulation regarding changes in product design. The cost of a new product is estimated using analogical and parametric models that base on artificial neural networks. Relationships identified by computational intelligence are used to prepare cost estimation and simulations. A model of product development, production process, and admissible resources is described in terms of a constraint satisfaction problem that is effectively solved using constraint programming techniques. The proposed method enables the selection of a more appropriate technique to cost estimation, the identification of a set of possible changes in product design towards reducing the total product cost, and it is the framework for developing a decision support system. In this aspect, it outperforms current methods dedicated for evaluating the potential of a new product.