Complexity cost analysis in a large product line
Name
127320468-MIT.pdf
Description
Full printable version
Size
21.8 MB
Format
Adobe PDF
Checksum (MD5)
dcc5b3b6c694c661083ce041e4a34050
Author(s)
Landivar Chávez, José Luis
Advisor(s)
Sharon Novak and David Simchi-Levi.
Alternative Title
Product line costs of complexity
Date Issued
2006
Publisher
Massachusetts Institute of Technology
Abstract
Hewlett-Packard's Industry Standard Servers (ISS) organization offers a large variety of server computers and accessories. The large range of options available to its customers gives way to complex processes and less than optimal resource usage. In the work presented here, a method for quantifying the costs associated with these effects is reviewed and applied to the current ISS offering. Several areas for investigation are identified including Research and Development, Sales and Marketing, Materials, Inventory, Organizational, amongst other costs that erode profits. Each area is explored through interviews and detailed modeling to arrive to a cost estimate. The end goal for estimating the costs associated with complexity is to establish a simple process for evaluating the "real" profitability of a new product introduction (NPI). Such process is enabled by implementing a set of complexity guidelines through the use of a complexity cost calculator. The end result is that HP's ISS division could see savings in the millions of dollars once the program is implemented. In the end, a set of wide reaching conclusions are drawn from the study to assist in future complexity cost analyses.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2006.
Includes bibliographical references (p. 73).
Subjects
Electrical Engineering and Computer Science.
Sloan School of Management.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
Sloan School of Management
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