Download Configuration Examples

Configuration Examples
& Mass Customization
by Christian Bentzen
Sales & Project Director | SolutionSpace
Example of Complex Configurable Item: Cyclone Air Filter
Different Configuration for different purposes, same model
Configuration Complexity
Configure to Order (CTO) & Configure, Price & Quote (CPQ)
Multiple Channels & Geographies
Objectives of Configuration Management
Cyclone Air Filter
Motor
Blower Outlet
Duct
Blower
Cyclone
Outlet
Inlet
Outer
Cylinder
Muffler
Filters
Cone
Flex Hose
Dust Bin
Clean Air Out
Cyclone Air Filter
Motor
Blower Outlet
Duct
Blower
Cyclone
Outlet
Inlet
Outer
Cylinder
Muffler
Filters
Cone
Flex Hose
Dust Bin
Clean Air Out
Blower
Motor
Capacity
Motor Size
Blower Outlet
Diameter
Outlet Length
Material
Blower
Inlet
Inlet
Air Flow Cyclone
Diameter Outlet
Length
Material
Cyclone
Air Flow
Inner Diameter
Outer Diameter
Cone
Height
Material
Outer
Overall
Cylinder
Total
Capacity
Mass Balance
Energy Balance
Noise Level
Mounting
Flex Hoze
Diameter
Length
Material
Flex Hose
Dust Bin
Dust Bin
Diameter
Height
Material
Capacity
How to Empty
Confugurable
Parameters
Duct
Duct
Diameter
Bend Degree
Material
Muffler
Muffler
Noise Reduction
Material
Filters
Filters
Air Flow
Diameter
Length
Filtration Capability
Cleaning Method
Clean Air Out
Sales Configuration
Type of Air
Degree of Pollution
Air Volume
Industry Requirements
Chamber Structure
. . . . leads
to:
Production
Configuration
Height
Upper
Mounting Ring
- Diameter,
# Holes
Diameter
Four
Upper Cone Parts
Material
- Hight, Width, Material, Surface
Surface
- Bending
work, Welding time
Four Lower Cone Parts
- Hight, Width, Material, Surface
- Bending work, Welding time
Two Assemply Rings
- Diameter, # Holes
- Mounting time
Outlet Tube
Procurement Configuration
Material & Surface
Squaremeters
Time to Cut & Bend
Meters of Welding
Grinding and Finishing
Packaging, Transportation
- Hight, Diameter, Mounting
Mounting, Grinding, Finishing
Packaging, Transportation . . .
- All according to the
frame agreements
with the workshops
Configuration Complexity
Different Views on the same Components
• Sales Configuration
‒ Business Oriented, Customer Requirements & Benefits
‒ Easy to use for Sales, Web Portal, B2B, B2C
‒ Configure, Price & Quote (CPQ)
• Product Configuration
‒ More Detailed, Individual Components
‒ Engineering, Construction, CAD Drawings
‒ Input to Production Planning, Project Management
• Procurement Configuration
‒ Next Generation Approach
‒ To be built into the Supplier Agreements
‒ Lean, Just-in-time, take more control of the Value Chain
Facts from Gulf Extrusions:
60,000 tons of extruded aluminium profiles per year
13,000 different profile designs
10,000 price enquiries per month
Fluctuating raw material prices, based on weight
Increasing cost of finishing, heavy investments
Low Margins in a volatile market
The Most Advanced CPQ System
- Configure to Order
13,000 Profile Designs
Alloy, Length, Quantity
Anodizing, Dying, Sealing
Powder Coating, Curing
Polishing, Packaging
10,000 Enquiries per Month
6 Extrusion Presses
Fully Automated Factory
Total Cost Control of all
Processes and Machines
Increasing Production Cost
Configure
Price
Quote
All necessary
Production
Details -> ERP
Master Data Management
Detailed Cost Analysis
Product Modelling
Advanced Configuration
Dynamic Production Planning
Sales Configuration across multiple
sales channels and geographies
The Challenge
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Multiple product lines from different parts of the organization
Difficulty to fulfil the intention of One Point of Contact for all products & services
Customers often ask different parts of your organization and get different answers
Desire to improve conformity across all sales channels on a global scale
Increasing demand for flexibility from the customers
Pricing dependent on complex rules and agreements, often off-line
Problems to follow all changes in products and services and their prices
Too long time to introduce new products or changes
Sales often promote outdated or impossible to produce products, leading to low margins,
rework or high warranty cost
Low Cross-Sales and Up-Sales support in existing systems
High time and resource consumption to prepare complex quotations
Complex approval processes to ensure correctness and proper margins
....
Why Configuration ?
If you manufacture or sell complex product and services, you
should consider introducing Configuration Management if you
want to achieve the following benefits:
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Lower cost of Flexibility
Improved Customization
Faster Time-to-Market
Better Cost of Sales
Shorter Sales Cycles
Higher Customer Satisfaction
Optimized Product Quality
Structured Master Data Management
Sharing of Best Practices
More efficient Change Management
Visibility of Mistakes
Where Configuration fits in:
– Product Design
– Engineering
– Sourcing
– Manufacturing
– Stock keeping
– Marketing
– Sales
– Documentation
– Service
– Spare Parts
Objectives of Configuration Management
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To Design products that can meet customer demand the most optimal way
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To Engineer products and manufacturing methods to satisfy mass customization
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To Source required components with maximum re-usability and best possible price
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To Manufacture customized products at mass production efficiency and cost
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To improve Quality and Change Management
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To keep the lowest possible Stock to minimize tied-up capital
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To make sure that your products are Marketed according to local requirements
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To lower Cost of Sales by optimizing Channels to Market
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To minimize the cost of and maximize flexibility of Documentation
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To ensure optimal Service in order to improve Customer Satisfaction
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To optimize availability of Spare Parts at lowest possible cost
Disciplines of Configuration
• Modeling Products
– To ensure mass customization possibilities
• Testing Models
– It’s far cheaper to test a model than a product
• Implementing Models in Manufacturing
– Getting the most out of the configuration technology
• Using Models in Marketing and Sales
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Meeting Market Demand
Product Catalogues
Only sell what can be produced
Up- and Cross selling
• Building efficient Sales Channels
– Indirect sales and web shops
– Self Service Portals
– Same model for all