In-Production Product Value: A New Method for Part Type Prioritization

Typically, the value of a product is addressed in the fields of marketing, neoclassical economics, or classical economics. Product value in these fields is associated with the final shape of a product. This paper presents a new different perspective for defining product value. It introduces a formula for evaluating product value while it is in production. Contributors of the proposed formula include the product revenue, the percentage of the product’s finished-cycle time, the product criticality, and the due date of the product. Based on the in-production product value formula, an algorithm for part type priority and scheduling is presented. The algorithm was applied to a hypothetical manufacturing example and the simulation results proved the validity and applicability of the proposed algorithm