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Challenges in product variant costing – a case study

Published online by Cambridge University Press:  16 May 2024

Morten Nørgaard ,
Jakob Meinertz Grønvald ,
Carsten Keinicke Fjord Christensen  and
Niels Henrik Mortensen
Morten Nørgaard*
Affiliation:
Technical University of Denmark, Denmark
Jakob Meinertz Grønvald
Affiliation:
Technical University of Denmark, Denmark
Carsten Keinicke Fjord Christensen
Affiliation:
Technical University of Denmark, Denmark
Niels Henrik Mortensen
Affiliation:
Technical University of Denmark, Denmark
*
[email protected]

Abstract

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This study explores challenges in decision-making for product design due to insufficient cost transparency because of product variety across the value chain. Utilizing a literature review and a case study on a company, it delves into issues such as value chain consideration, product family assessment, linking effects to specific product levels, and converting measured effects. Highlighting the critical need to address these challenges for decision-making. Future research should focus on a comprehensive costing framework, explore effect interdependencies, and expand the value chain analysis.

Keywords

decision makingdesign knowledgevariant managementvariant costing
Type
Engineering Design Practice
Information
Proceedings of the Design Society , Volume 4: DESIGN 2024 , May 2024 , pp. 3003 - 3012
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2024.

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