Cycle time estimation approach based on mathematical programming and statistical regression

Under the environment of fierce market competition, to enhance customer satisfactions and improve ability of quick responses, the production type of mass customization is advocated in many enterprises, especially in automobile industry. Because of the customization demands will impact the standard cycle time, cycle time estimation is essential in mass customization in the analysis of contracts negotiation, capacity planning, and the assignments of due dates. In this paper, a combined methodology employing an analytical model and a statistical regression method is proposed to facilitate the cycle time estimation considering the customer demands. The analytical optimal model for the cost minimization is expressed as the function of the degree of customization and the cost coefficient, their relationship is described by a statistical regression method. Finally, a case study is used to illustrate the detailed estimation procedures.