Title: Combining a cost-benefit algorithm for ECTEP into the product structure diagram

Authors: Yuan-Shyi Peter Chiu

Addresses: Department of Industrial Engineering & Management, Chaoyang University of Technology, Taichung 413, Taiwan

Abstract: This study presents a cost-benefit algorithm for Expediting the Completion Time of End Product (ECTEP) in the Product Structure Diagram (PSD) using the Critical Path Method (CPM) and the time-costing method. The classic PSD provides essential information for the consequent Material Requirement Planning (MRP). Selecting an appropriate acquisition method (either a particular manufacturing process or a specific speed of assembly or a specific supplier) for each component part is one of the early tasks faced by a product/process design team and it is critical because the resulting decisions are then translated into the PSD and its subsequent MRP. This study incorporates a cost-benefit decision procedure into the PSD for determining the optimal component procuring alternatives that not only expedites the completion time of the end product but also maximises the benefits. A numerical example is provided to demonstrate its practical usage.

Keywords: cost-benefit algorithm; product structure diagram; time costing method; component procurement decision; CPM; critical path method; supplier selection; MRP; product development; procurement alternatives; process selection; material requirements planning.

DOI: 10.1504/IJMPT.2005.006463

International Journal of Materials and Product Technology, 2005 Vol.22 No.4, pp.339 - 350

Published online: 10 Mar 2005 *

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