Product Proliferation

Product Proliferation
Author: Barry L. Bayus
Publisher:
Total Pages: 0
Release: 2012
Genre:
ISBN:

Previous theoretical research has identified three primary effects of a product proliferation strategy: (1) a broad product line can increase overall demand, (2) a broad product line can affect supply by increasing costs, and (3) broad product lines can have strategic consequences (e.g., long product lines can deter entry, thereby allowing an incumbent firm to raise prices). In this paper we propose a three-equation simultaneous system that captures both the determinants and market outcomes of a firm's product line decisions. In particular, we specify market share, price and product line length equations, which are estimated by three stage least squares. Our empirical results for the personal computer industry over the period 1981-1992 demonstrate that product proliferation decisions have both demand (market share) and supply (price) implications. Our empirical results also suggest that the firm-level net market share impact of product proliferation in the personal computer industry is negative (i.e., the cost increases associated with a broader product line dominate any potential demand increases). As expected, we find that structural competitive factors play an important role in the determinants and market outcomes of a firm's product line decisions. However, we do not find evidence of firms using proliferation strategies to deter entry in this industry. Finally, we also demonstrate that some of the empirical conclusions from previous research are reversed once product line length is specified as endogenous in the share and price specifications.

Lean Production for Competitive Advantage

Lean Production for Competitive Advantage
Author: John Nicholas
Publisher: CRC Press
Total Pages: 613
Release: 2018-03-15
Genre: Business & Economics
ISBN: 149878089X

Lean Production for Competitive Advantage: A Comprehensive Guide to Lean Methodologies and Management Practices, Second Edition introduces Lean philosophy and illustrates the effective application of Lean tools with real-world case studies. From fundamental concepts to integrated planning and control in pull production and the supply chain, the text provides a complete introduction to Lean production. Coverage includes small batch production, setup reduction, pull production, preventive maintenance, standard work, as well as synchronizing and scheduling Lean operations. Detailing the key principles and practices of Lean production, the text also: Illustrates effective implementation techniques with case studies from a range of industries. Includes questions and completed problems in each chapter. Explains how to effectively partner with suppliers and employees to achieve productivity goals Designed for students who have a basic foundation in production and operations management, the text provides a thorough understanding of the principles of Lean. It also offers practical know-how for implementing a culture of continuous improvement on the shop floor and in the office, creating a heightened sense of responsibility in all stakeholders, and enhancing productivity and efficiency to improve the bottom line. In this second edition, the author addresses management’s role in Lean production. Early observers of Japanese methods focused on the shop floor to see amazing things unlike anything practiced elsewhere. And the thinking was, if the "methods" could be adopted by companies elsewhere, those companies would experience the success of the Japanese. What the early observers hadn’t considered were dramatic differences in the way those companies were managed, both daily and strategically. The "management side" of Lean production is addressed in two new chapters, one devoted to daily management, the other to strategy deployment. Additionally, there is a new chapter that addresses breakthrough improvement and an approach to achieving it called Production Preparation Process. Every chapter has been revised and expanded to better tell the story of Lean production—its history, applications, practices, and methods.

Redesigning the Firm

Redesigning the Firm
Author: Edward H. Bowman
Publisher: Oxford University Press, USA
Total Pages: 292
Release: 1995
Genre: Business & Economics
ISBN: 0195087100

Examines the best way to organize a firm

Impact of Part Proliferation on a High Mix Low Volume Manufacturing Environment

Impact of Part Proliferation on a High Mix Low Volume Manufacturing Environment
Author: Paige Denise Youngerman
Publisher:
Total Pages: 41
Release: 2020
Genre:
ISBN:

This project set out to create a framework for conducting a cost benefit analysis of part proliferation looking into first, second and third order effects of part specialization within the entire Caterpillar enterprise. This project builds on previous internal efforts to reduce complexity by evaluating the impact of increasing part count on design, procurement, inventory, production and both internal and external quality. Part proliferation occurs as parts are designed or redesigned to increase safety, comply with changing regulatory rules, improve profitability, serve niche customer demands and increase percentage of industry sales (PINS). The main driver for creating unique parts instead of common components comes from the incentivization to optimize designs for individual models and applications with a relatively narrow perspective on the cost function underlying parts proliferation. Caterpillar factories assemble final products from unique components sourced from both internal and external suppliers. Part proliferation increases inventory and requires design and upkeep actions to create and produce the new product. Many of the challenges associated with proliferation are hidden or poorly understood as they involve factory and quality efficiencies which tend to be aggregated at a high level or dealt with as a one-time issue. Other benefits such as inventory reduction are clearer but were analyzed by this project to understand the total impact of a unique part to the system. This project focused on decreasing the proliferation of axle options within the Medium Wheel Loader (MWL) and Large Wheel Loader (LWL) product families, with the outcome of creating a generalized framework for use throughout the enterprise on any product family. The study found that the impact of including the areas of operational inefficiencies, internal quality, and external quality, when adding an axle configuration increased the costing analysis by 64%. The details of this analysis are presented in the following dissertation.