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INTRODUCING A FRAMEWORK TO GENERATE AND EVALUATE THE COST EFFECTS OF PRODUCT (FAMILY) CONCEPTS

Published online by Cambridge University Press:  27 July 2021

Kai G. Mertens*
Affiliation:
Hamburg University of Technology - Institute of Management Accounting and Simulation
Mark Schmidt
Affiliation:
Hamburg University of Technology - Institute of Management Accounting and Simulation
Tugba Yildiz
Affiliation:
Hamburg University of Technology - Institute of Management Accounting and Simulation
Matthias Meyer
Affiliation:
Hamburg University of Technology - Institute of Management Accounting and Simulation
*
Mertens, Kai G., Hamburg University of Technology, Institute of Management Accounting and Simulation, Germany, kai.mertens@tuhh.de

Abstract

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Product concept generation and evaluation are critical for the success of new product developments (NPD) because managers need to select the most profitable product concepts. However, current approaches can be restricted to single products and do not cover product families' effects. Similarly, they do not necessarily capture all requirements and usually lack extensive cost analyses. Thus, this paper proposes a framework supporting product concept generation and evaluation by providing an accessible conceptualization to overcome the limitations. Using the so-called Extended Axiomatic Design (EAD) supports designers and managers to configure the requirements across product concepts' various domains while concurrently evaluating their economic consequences. The study applies the framework on a simplified case of a bottle manufacturer to conceptualize four product concepts. The case illustrates how the EAD can be used as a virtual testbed to generate and evaluate new product concepts. Finally, designers and managers can make more informed decisions about product concepts by considering their economic and engineering selection criteria to select the most profitable NPD project configuration.

Type
Article
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2021. Published by Cambridge University Press

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