A Method to Improve Platform Leveraging in a Market Segmentation Grid for an Existing Product Line

Abstract

This paper describes a method for improving commonality in a highly customized low volume product line whose members were originally developed one at a time to meet specific customer requirements. Rather than focusing on redesign of the entire product line, which can often be cost prohibitive, the method is part of a strategy to redesign a limited set of component parts that have the highest potential for cost savings. The method involves a four-step methodology: (1) determine an optimal component solution for each member artifact of an existing market segment grid, (2) test the feasibility of using each optimal component as a platform for the other artifacts, (3) formulate an optimization problem around the feasibility statistics whose solution is a product platform portfolio, and (4) solve the optimization problem for the platform portfolio that can span the existing market segment grid most cost effectively. The proposed method is applied to an example involving the redesign of actuator mounting yokes for an existing set of valves that are used in nuclear power plants. The methodology shows promise for determining a product platform mix that maximizes cost effectiveness yet meets performance requirements.