Investigation of cost saving with common components in a product family

• Main Author: En, Pei Qing
• Other Authors: Chen Songlin
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2023
• Subjects: Engineering::Mechanical engineering
• Online Access: https://hdl.handle.net/10356/167340
• Institution: Nanyang Technological University

Component commonality is a critical concept in modern manufacturing, as it has been demonstrated to offer several benefits, such as lower inventory costs, reduced lead time, and increased production flexibility. This paper provides an overview of the concept of 12 different types of component commonality indices. Each index focuses on different aspects of commonality and can be useful for engineers to identify which components can be shared among product families. This study presents a methodology for identifying component commonality in a product family using the commonality indices, as well as how company identify component commonality. The methodology includes a proposed dissection of how different commonality indices can be applied. The report also includes a case study with Thermo Fisher Scientific, a company in the life sciences industry. The case study shows the whole process of identifying component commonality in their product line and how the commonality strategy helps to potentially reduce cost and improve overall supply chain management. The study concludes with recommendation and limitations that the study have.