The impact of design rework on engineer-to-order lead-time dynamics

Zhou, Yuxuan, Naim, Mohamed ORCID: https://orcid.org/0000-0003-3361-9400, Gosling, Jonathan ORCID: https://orcid.org/0000-0002-9027-9011 and Wang, Xun ORCID: https://orcid.org/0000-0001-7800-726X 2025. The impact of design rework on engineer-to-order lead-time dynamics. International Journal of Production Economics , 109763. 10.1016/j.ijpe.2025.109763 Item availability restricted.

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Abstract

Design rework is a major challenge in Engineer-to-Order (ETO) systems, often leading to significant cost and time overruns. It arises in two forms: errors or customer design changes identified during the design phase and those discovered later in downstream production. This study aims to investigate the impact of these rework types on ETO lead times and evaluates the effectiveness of the "Think Slow, Act Fast" philosophy in improving system performance. To achieve this, two ETO archetypes are developed to quantify the benefits of this approach and determine the optimal time allocation for the design phase. While several studies emphasize minimizing design errors before production, often through extended design lead time or additional inspection resources, the justification for such measures and their impact on production dynamics remain unclear. This research provides a quantitative framework to assess the "Think Slow, Act Fast" philosophy by comparing two ETO system archetypes. Key findings reveal that allocating additional time to the design phase can reduce lead-time variability and mitigate the bullwhip effect. Simulation results demonstrate a reduction in production workload, as represented by formula: RW/(1-RW), if design errors or changes are prevented from transferring to the production system. From a practical perspective, this study offers managers a method to optimize time and resource allocation, ensuring design errors are resolved before reaching production and minimizing their impact on the overall system. These insights support informed decision-making for improving performance in ETO systems.

Item Type:	Article
Date Type:	Published Online
Status:	In Press
Schools:	Schools > Business (Including Economics) Research Institutes & Centres > Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Publisher:	Elsevier
ISSN:	0925-5273
Date of First Compliant Deposit:	7 August 2025
Date of Acceptance:	4 August 2025
Last Modified:	07 Aug 2025 13:30
URI:	https://orca.cardiff.ac.uk/id/eprint/180296

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