Making Product Customization Profitable

Niels Henrik Mortensen, Lars Hvam, Anders Haug, Per Boelskifte, Christian Lindschou Hansen

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    Abstract

    The main result presented in this paper is the Framework for Product Family Master Plan. This framework supports the identification of a product architecture for companies that customize products and services. The framework has five coherent aspects, the market, product assortment, supply-production, organization and work processes. One of the unique results is that these aspects are linked, which make it possible to make explicit recommendations for an architecture (the way a product family should be structured with clear interfaces), architecture elements and consequences. By means of a case study it is shown that the potential EBIT (Earning Before Interests and Taxes) improvement of the case company is 10%.
    Original languageEnglish
    JournalInternational Journal of Industrial Engineering (Online)
    Volume17
    Issue number1
    Pages (from-to)25-35
    ISSN1072-4761
    Publication statusPublished - 2010

    Keywords

    • Architecture
    • Product Family Design
    • Product development
    • Platform

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