Quality improvement through product redesign and the learning curve

This paper presents a dynamic programming model for studying the effects of product redesign on the value, cost, and quality control processes in a single product environment. The model provides the optimal redesign policy, that is the optimal depth and the optimal timing for implementing the redesign, so the accumulated net product value can be maximized. The accumulated net product value is used as a measure of product quality, however the model formulation allows for the use of other quality functions as well. The model can be used with different processes, and non-uniform redesign effects on the value, cost, and quality control learning curves. Selective results demonstrate that the early implementation of the optimal redesign level enhances the accumulated net product value.