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Using the economic point of truncation process for new product introduction
Author(s) -
Zurn James T.
Publication year - 1992
Publication title -
quality and reliability engineering international
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.913
H-Index - 62
eISSN - 1099-1638
pISSN - 0748-8017
DOI - 10.1002/qre.4680080508
Subject(s) - product (mathematics) , truncation (statistics) , product lifecycle , process (computing) , computer science , point (geometry) , reliability engineering , operations research , resolution (logic) , total cost , quality (philosophy) , new product development , engineering , mathematics , economics , geometry , management , machine learning , artificial intelligence , microeconomics , operating system , philosophy , epistemology
Proper validation and release of a newly developed product into the market‐place at the minimum supplier cost requires a robust deterministic system. It must characterize cost elements and recommend optimum introduction points in support of total quality management. The economic point of truncation (EPOT) process fulfils the requirements for this system. It integrates pre‐ and post‐release problem resolution costs with the rates of problem discovery, latent problems and product shipping into a product life cycle model. The model simulates the cost accrual for problem resolution during the validation, release and product shipment periods. Model execution results in a characterized life cycle indicating the optimum duration of product validation that minimizes total problem resolution costs.