Managing design of assembly sequences for product lines that delay product differentiation

The integration of product design and operations could potentially enhance the ability of manufacturers to provide large variety in the product line while keeping their operations competitive. At the plant level, an improved assembly sequence can lead to superior operational response to customer demands. While this has been intuitively accepted, there is a scarcity of models that can adequately reflect the operational benefits of a costlier yet better design. In this paper, we present integrated models applicable at a plant level that can provide quantification of certain operational benefits. Further, through a computational study, we also provide qualitative insights on several issues such as the effect of: (i) features in the product line; (ii) variance of demand for the different features on the optimal assembly design; (iii) set-up times; and (iv) life cycle of the product line.