Abstract

Tradeoff curves are a knowledge management tool used in Lean Product and Process Development (LPPD) to illustrate the known relationship of two design characteristics relative to each other. These characteristics are usually in conflict, whereby increasing one characteristic results in a decrease of the other, and the tradeoff curve defines the feasible limit for the design options. Target Costing is a practice used by firms to ensure that a future product meets and retains desired profit levels throughout its lifespan in the market. The allowable Direct Cost for the product is composed of Direct Material and Direct Assembly. In assembly process development, engineers face a tradeoff between labor and capital investment. A tradeoff curve can be used to illustrate the relationship between these two characteristics for given market conditions. This paper describes the development of a model that can be used to generate tradeoff curves to map the feasible solution space for assembly process alternatives in different economic environments with potentially different target costs. Understanding the tradeoffs and limits in advance of detailed development enables process designers to consider several solution sets to support better decisions and achieve desired levels of profitability.