Estimating Production and Warranty Cost at the Early Stage of a New Product Development Project. Issue 1 (2021)

• Record Type: Journal Article
• Authors: Relich, Marcin; Nielsen, Izabela
• Is Part Of: IFAC-PapersOnLine. Volume 54:Issue 1(2021)
• Page Start: 1092
• Page End: 1097
• Publication Date: 2021
• Subjects: business analytics -- computational intelligence for business -- data-driven decision making -- decision support -- control -- project management; Automatic control -- Periodicals; 629.805
• DOI: 10.1016/j.ifacol.2021.08.128
• Languages: English
• ISSNs: 2405-8963

Abstract

Abstract: The paper is concerned with estimating the cost of production and warranty in the context a new product development project. All possible variants of the trade-off between costs are sought within the company's resources and requirements for a product development project. A company and its projects can be specified in terms of variables and constraints that constitute the systems approach for a problem related to cost optimization. This problem is described in the form of a constraint satisfaction problem and implemented with the use of parametric modelling and constraint programming techniques. The paper also presents a method for estimating the cost of prototyping, faulty products in manufacturing and the after-sales stage, and simulating variants that ensure the desirable level of costs. An example shows the applicability of the proposed approach in the context of a product development project.