Barco implements platform-based product development in its healthcare division
Boute, Robert Van den Broeke, Maud Deneire, Kristof
Boute, Robert
Van den Broeke, Maud
Deneire, Kristof
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2018
Journal
Interfaces
Book
Publication Volume
48
Publication Issue
1
Publication Begin page
35
Publication End page
44
Publication NUmber of pages
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Abstract
In this article, we present how Barco, a global technology company, used an operations research optimization model, which was supported by an efficient solution method, to implement platforms—common structures from which sets of products could be made—for the design and production of its high-tech medical displays. Our optimization model captures all cost aspects related to the use of platforms, thus, it is an objective tool that considers the input from marketing, sales, research and development (R&D), operations, and the supply chain. This comprehensive view allowed Barco to avoid the excessive costs that may result from the implementation of an incorrect platform. Our model supported Barco in determining the elements that should comprise each platform, the number of platforms to develop, and the products to derive from each platform. The results of the project led to reductions in safety stock and increased flexibility due to the use of platforms: R&D can now introduce twice as many products using the same resources, thus increasing Barco's earnings by over 5 million euros annually and reducing product introduction time by nearly 50 percent.
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Keywords
Operations Management, Healthcare Management, Healthcare Supply Chain, Platforms, Product Development, Supply Chain