Optimal resource allocation for dynamic product development process via convex optimization
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ORIGINAL PAPER
Optimal resource allocation for dynamic product development process via convex optimization Chengyan Zhao1 · Masaki Ogura2 · Masako Kishida3 · Ali Yassine4 Received: 20 February 2020 / Revised: 19 September 2020 / Accepted: 24 September 2020 © Springer-Verlag London Ltd., part of Springer Nature 2020
Abstract Resource allocation is an essential aspect of successful Product Development (PD). In this paper, we formulate the dynamic resource allocation problem of the PD process as a convex optimization problem. Specially, we build and solve two variants of this problem: the budget-constrained problem and the performance-constrained problem. We use convex optimization as a framework to optimally solve large problem instances at a relatively small computational cost. The solutions to both problems exhibit similar trends regarding resource allocation decisions and performance evolution. Furthermore, we show that the product architecture affects resource allocation, which in turn affects the performance of the PD process. By introducing centrality metrics for measuring the location of the modules and design rules within the product architecture, we find that resource allocation decisions correlate to their metrics. These results provide simple, but powerful, managerial guidelines for efficiently designing and managing the PD process. Finally, for validating the model and its results, we introduce and solve two design case studies for a mechanical manipulator and for an automotive appearance design process. Keywords Product development · Dynamic model · Resource allocation · Investment/performance trade-offs · Centrality · Convex optimization
1 Introduction Successful Product Development (PD) requires careful allocation of development resources. Allocating resources to various subsystems and modules within the product system requires a deep understanding of many complex interactions. * Chengyan Zhao [email protected] Masaki Ogura m‑[email protected]‑u.ac.jp Masako Kishida [email protected] Ali Yassine [email protected] 1
Graduate School of Science and Technology, Nara Institute of Science and Technology, Ikoma, Nara 630‑0192, Japan
2
Graduate School of Information Science and Technology, Osaka University, Suita, Osaka 565‑0871, Japan
3
Principles of Informatics Research Division, National Institute of Informatics, Tokyo 101‑8430, Japan
4
Department of Industrial Engineering and Management, American University of Beirut, Beirut 1107‑2020, Lebanon
These interactions arise from various sources; namely, due to the physical interdependencies between the different subsystems in the product itself (i.e., the product architecture), the arrangements of organizations that will carry out the development process (i.e., the social network behind the organization), and the structure of the development process (i.e., predecessor relationships between development activities) Yassine (2019). In particular, this paper is focused on obtaining an understanding of the product architecture an
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