Chapter 7: Product Assembly and Design

Title: Identification of Real Options for Product Family Configuration Design

Author(s): Ching Moi Lim, Jianxin Jiao, Arun Kumar, Yiyang Zhang

Address: School of Mechanical & Aerospace Engineering, Nanyang Technological University 50, Nanyang Avenue, Singapore, 639798 | School of Mechanical & Aerospace Engineering, Nanyang Technological University 50, Nanyang Avenue, Singapore, 639798 | School of Mechanical & Aerospace Engineering, Nanyang Technological University 50, Nanyang Avenue, Singapore, 639798 | School of Mechanical & Aerospace Engineering, Nanyang Technological University 50, Nanyang Avenue, Singapore, 639798

Reference: International Conference on Product Lifecycle Management 2005 pp. 342 - 351

Abstract/Summary: This paper focuses on Product Family Configuration Design (PFCD) based on Product Family Architecture, which constitutes not only individual designs but also a family of configuration designs. With large number of PFCD alternatives derived, Real Options (RO) is proposed to valuate and make selections to the feasible alternatives. Based on analogous study between RO and PFCD, screening, adding variant and abandon operational options are identified to deal with uncertainty associated with customer needs and the inherent flexibility characteristics. A case study is reported regarding the operational options execute in mobile phone vibration motor family configuration design valuation.

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