Configuration Examples & Mass Customization by Christian Bentzen Sales & Project Director |...
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Transcript of Configuration Examples & Mass Customization by Christian Bentzen Sales & Project Director |...
Configuration Examples& Mass Customization
by Christian BentzenSales & 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
Flex Hose
Clean Air Out
Cone
Outer Cylinder
Motor
CycloneOutlet
Blower Outlet
Duct
Muffler
Filters
Blower
Inlet
Dust Bin
Cyclone Air Filter
Dust Bin
Flex Hose
Clean Air Out
Cone
Outer Cylinder
Motor
CycloneOutlet
Blower Outlet
Duct
Muffler
Filters
Blower
Inlet
Cyclone Air Filter
Dust Bin
Flex Hose
Clean Air Out
Cone
Outer Cylinder
Motor
CycloneOutlet
Blower Outlet
Duct
Muffler
Filters
Blower
Inlet
Flex HozeDiameterLengthMaterial
BlowerCapacityMotor SizeDiameterOutlet LengthMaterial
CycloneAir FlowInner DiameterOuter DiameterHeightMaterial
InletAir FlowDiameterLengthMaterial
Dust BinDiameterHeightMaterialCapacityHow to Empty
DuctDiameterBend DegreeMaterial
MufflerNoise ReductionMaterial
FiltersAir FlowDiameterLengthFiltration CapabilityCleaning Method
OverallTotal CapacityMass BalanceEnergy BalanceNoise LevelMounting
Confugurable Parameters
Sales ConfigurationType of AirDegree of PollutionAir VolumeIndustry Requirements
. . . . leads to:HeightDiameterMaterialSurface
Production ConfigurationUpper Mounting Ring- Diameter, # HolesFour Upper Cone Parts- Hight, Width, Material, Surface- Bending work, Welding timeFour Lower Cone Parts- Hight, Width, Material, Surface- Bending work, Welding timeTwo Assemply Rings- Diameter, # Holes- Mounting timeOutlet Tube- Hight, Diameter, MountingMounting, Grinding, FinishingPackaging, Transportation . . .
Procurement ConfigurationMaterial & SurfaceSquaremetersTime to Cut & BendMeters of WeldingGrinding and FinishingPackaging, Transportation
- All according to the frame agreements with the workshops
Chamber Structure
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 year13,000 different profile designs10,000 price enquiries per month
Fluctuating raw material prices, based on weightIncreasing cost of finishing, heavy investmentsLow Margins in a volatile market
ConfigurePrice
Quote
13,000 Profile DesignsAlloy, Length, QuantityAnodizing, Dying, SealingPowder Coating, CuringPolishing, Packaging
6 Extrusion PressesFully Automated FactoryTotal Cost Control of all Processes and MachinesIncreasing Production Cost
10,000 Enquiries per MonthAll necessary ProductionDetails -> ERP
Master Data ManagementDetailed Cost AnalysisProduct ModellingAdvanced ConfigurationDynamic Production Planning
The Most Advanced CPQ System - Configure to Order
Sales Configuration across multiple sales channels and geographies
The Challenge‒ 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:
– 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
• To Design products that can meet customer demand the most optimal way
• To Engineer products and manufacturing methods to satisfy mass customization
• To Source required components with maximum re-usability and best possible price
• To Manufacture customized products at mass production efficiency and cost
• To improve Quality and Change Management
• To keep the lowest possible Stock to minimize tied-up capital
• To make sure that your products are Marketed according to local requirements
• To lower Cost of Sales by optimizing Channels to Market
• To minimize the cost of and maximize flexibility of Documentation
• To ensure optimal Service in order to improve Customer Satisfaction
• 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– 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