Calculation of Complexity Costs – An Approach for Rationalizing a Product Program

Publication: Research - peer-reviewArticle in proceedings – Annual report year: 2012

Standard

Calculation of Complexity Costs – An Approach for Rationalizing a Product Program. / Hansen, Christian Lindschou; Mortensen, Niels Henrik; Hvam, Lars.

Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production, 2012.

Publication: Research - peer-reviewArticle in proceedings – Annual report year: 2012

Harvard

Hansen, CL, Mortensen, NH & Hvam, L 2012, 'Calculation of Complexity Costs – An Approach for Rationalizing a Product Program'. in Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production.

APA

Hansen, C. L., Mortensen, N. H., & Hvam, L. (2012). Calculation of Complexity Costs – An Approach for Rationalizing a Product Program. In Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production.

CBE

Hansen CL, Mortensen NH, Hvam L. 2012. Calculation of Complexity Costs – An Approach for Rationalizing a Product Program. In Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production.

MLA

Hansen, Christian Lindschou, Niels Henrik Mortensen, and Lars Hvam "Calculation of Complexity Costs – An Approach for Rationalizing a Product Program". Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production. 2012.

Vancouver

Hansen CL, Mortensen NH, Hvam L. Calculation of Complexity Costs – An Approach for Rationalizing a Product Program. In Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production. 2012.

Author

Hansen, Christian Lindschou; Mortensen, Niels Henrik; Hvam, Lars / Calculation of Complexity Costs – An Approach for Rationalizing a Product Program.

Proceedings of NordDesign Conference 2012. Aalborg University, Center for Industrial Production, 2012.

Publication: Research - peer-reviewArticle in proceedings – Annual report year: 2012

Bibtex

@inbook{255a9f779b8b4d38ac9d17aa67da3b39,
title = "Calculation of Complexity Costs – An Approach for Rationalizing a Product Program",
keywords = "Complexity costs, Product program, Rationalization, Product architecture",
publisher = "Aalborg University, Center for Industrial Production",
author = "Hansen, {Christian Lindschou} and Mortensen, {Niels Henrik} and Lars Hvam",
year = "2012",
isbn = "978-87-91831-51-5",
booktitle = "Proceedings of NordDesign Conference 2012",

}

RIS

TY - GEN

T1 - Calculation of Complexity Costs – An Approach for Rationalizing a Product Program

A1 - Hansen,Christian Lindschou

A1 - Mortensen,Niels Henrik

A1 - Hvam,Lars

AU - Hansen,Christian Lindschou

AU - Mortensen,Niels Henrik

AU - Hvam,Lars

PB - Aalborg University, Center for Industrial Production

PY - 2012

Y1 - 2012

N2 - This paper proposes an operational method for rationalizing a product program based on the calculation of complexity costs. The method takes its starting point in the calculation of complexity costs on a product program level. This is done throughout the value chain ranging from component inventories at the factory sites, all the way to the distribution of finished goods from distribution centers to the customers. The method proposes a step-wise approach including the analysis, quantification and allocation of product program complexity costs by the means of identifying of a number of suggested Life Cycle Complexity Factors (LCCFs). The suggested method has been tested in an action based research study with promising results. The case study shows how the allocation of complexity costs on individual product variants provides previously unknown insights into the true cost structure of a product program. These findings represent an improved decision basis for the planning of reactive and proactive initiatives of rationalizing a product program.

AB - This paper proposes an operational method for rationalizing a product program based on the calculation of complexity costs. The method takes its starting point in the calculation of complexity costs on a product program level. This is done throughout the value chain ranging from component inventories at the factory sites, all the way to the distribution of finished goods from distribution centers to the customers. The method proposes a step-wise approach including the analysis, quantification and allocation of product program complexity costs by the means of identifying of a number of suggested Life Cycle Complexity Factors (LCCFs). The suggested method has been tested in an action based research study with promising results. The case study shows how the allocation of complexity costs on individual product variants provides previously unknown insights into the true cost structure of a product program. These findings represent an improved decision basis for the planning of reactive and proactive initiatives of rationalizing a product program.

KW - Complexity costs

KW - Product program

KW - Rationalization

KW - Product architecture

SN - 978-87-91831-51-5

BT - Proceedings of NordDesign Conference 2012

T2 - Proceedings of NordDesign Conference 2012

ER -