Short answer
When designing a new product family, do not treat the Bill of Materials and the supply chain as separate entities; integrate their design processes to uncover cost-saving opportunities.
- Field
- Commercial Production
- Source
- HAL (Le Centre pour la Communication Scientifique Directe) (2012)
- Method
- Mathematical modelling and optimization
- Evidence
- Strong effect
Designing the Bill of Materials (BOM) and the supply chain concurrently for a product family can lead to significant cost reductions compared to optimizing them separately. This commercial production research insight is drawn from a 2012 study published in HAL (Le Centre pour la Communication Scientifique Directe). Using Mathematical modelling and optimization, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing a new product family, do not treat the Bill of Materials and the supply chain as separate entities; integrate their design processes to uncover cost-saving opportunities.
Integrated Bill of Materials and Supply Chain Design Reduces Product Family Costs
Designing the Bill of Materials (BOM) and the supply chain concurrently for a product family can lead to significant cost reductions compared to optimizing them separately.
HAL (Le Centre pour la Communication Scientifique Directe) · 2012
Key Findings
- 01Joint optimization of BOM and supply chain design leads to lower total costs.
- 02Interdisciplinary approaches are more effective for managing product diversity and associated costs.
- 03Mathematical models can facilitate the integration of product design and supply chain decisions.
Application
Design takeaway
When designing a new product family, do not treat the Bill of Materials and the supply chain as separate entities; integrate their design processes to uncover cost-saving opportunities.
How to apply
When developing a new product line, involve supply chain experts early in the BOM design process to identify common components, shared manufacturing steps, and efficient distribution strategies.
Project actions
- 01Consider how changes in product components affect shipping and storage.
- 02Explore software that can model both product structure and logistics simultaneously.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Addresses a critical real-world business problem.
- +Provides a structured, mathematical approach to complex design integration.
Limitations
The mathematical models used may be simplified representations of complex industrial realities. Data availability for accurate cost estimations can be a challenge.
Reliability & validity
The reliability of the findings depends on the accuracy of the mathematical models and the input data. Validity is supported by the logical framework of integrated design, but real-world application may introduce confounding factors.
Think critically
To what extent can the cost savings identified in this research be generalized across different industries and product complexity levels?
Design Principles
"Holistic design integration: Optimize interconnected systems (e.g., product structure and logistics) concurrently rather than sequentially to achieve superior overall performance and cost-effectiveness."
In today's competitive landscape, companies must offer diverse product ranges while managing costs effectively. This research highlights that a holistic approach, integrating product structure (BOM) with logistical operations, is crucial for achieving greater efficiency and cost control across a family of products.
What This Means for Your Design
Think about how the parts list for a product family and how you'll get those products to customers at the same time. Doing both together can save a lot of money.
How to use in your project
- 1.Reference this study when discussing the importance of integrated design processes for product families and supply chains in your design project's background research or justification sections.
Add to My Project
Quick Cite
Paragraph starter
Research by Baud-Lavigne (2012) demonstrates that the concurrent design of a product family's Bill of Materials and its supply chain offers significant advantages over sequential optimization. By integrating these two critical aspects, designers and engineers can achieve substantial reductions in production, inventory, and logistics costs, leading to improved overall economic viability and competitiveness.
Source
HAL (Le Centre pour la Communication Scientifique Directe)
Conception conjointe de nomenclatures et de la chaîne logistique pour une famille de produits : outils d'optimisation et analyse
journal · 2012
View sourceQuestions About This Research
- What does the research say about integrated bill of materials and supply chain design reduces product family costs?
- When designing a new product family, do not treat the Bill of Materials and the supply chain as separate entities; integrate their design processes to uncover cost-saving opportunities. Evidence: HAL (Le Centre pour la Communication Scientifique Directe) (2012).
- Why does "Integrated Bill of Materials and Supply Chain Design Reduces Product Family Costs" matter for design?
- In today's competitive landscape, companies must offer diverse product ranges while managing costs effectively. This research highlights that a holistic approach, integrating product structure (BOM) with logistical operations, is crucial for achieving greater efficiency and cost control across a family of products.
- How can designers apply this research?
- When designing a new product family, do not treat the Bill of Materials and the supply chain as separate entities; integrate their design processes to uncover cost-saving opportunities.
- What were the main findings?
- Joint optimization of BOM and supply chain design leads to lower total costs.. Interdisciplinary approaches are more effective for managing product diversity and associated costs.. Mathematical models can facilitate the integration of product design and supply chain decisions.
- What research method was used?
- Mathematical modelling and optimization.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2012 journal from HAL (Le Centre pour la Communication Scientifique Directe).
- What should I do differently in my next project?
- When developing a new product line, involve supply chain experts early in the BOM design process to identify common components, shared manufacturing steps, and efficient distribution strategies.
- What are the limitations?
- The complexity of real-world supply chains and product variations may require further refinement of the mathematical models. The focus on cost optimization might not fully account for other critical factors like lead time or resilience.