Lars Hvam, Centre for Product Modelling, DTU www.productmodels.orgControl your product range if you want lean and robust business processes
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Control your product range if you want lean and robust business processes
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Agenda The centre for Product modelling How to control the product range? How to model product families for product configuration
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Centre for Product modelling Focus area: Platform development Product architecture Modularisation Standardisation Configuration Activities Research Ph.D. projects Industrial projects Consultancy Development of architectures, modules and configuration systems Courses & workshops Education Master courses in product platforms and product configuration Master Thesis projects
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
The association for product modelling Established in September 1999 by the Centre for Product Modelling, Technical University of Denmark. The objective of the Association for Product Modelling is to spread the knowledge of new operational methods for product modelling and to establish a personal network for mutual inspiration and help. The association comprises a network of persons who work within the area of product modelling. Two to four meetings a year. Webpage: www.produktmodeller.dk / www.productmodels.org At present 45 companies are members of the association.
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
References Alfa Laval (Sweden, Denmark) APC (Denmark) Bang & Olufsen (Denmark) Danfoss Drives (Denmark) Danfoss Industrial Controls (Denmark/Poland) Danfoss DH (Denmark, Germany, Poland, Finland, Russia) FLS (Denmark) NCC Construction (Denmark, Sweden) LEGO Company (Denmark) Grundfos (Denmark) YORK Refrigeration (Denmark) Vestas (Denmark) Wärtsilä (Finland) Andersen Windows (US) Invensys / Beologic (Denmark) Sony Ericsson (Sweden) Kværner (Sweden/Norway)
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Book: Product Customization Contents: Introduction. Specification Processes and Product Configuration.- The Procedure for Designing Product Configuration Systems. Development of Specification Processes. Analysis of the Product Range. Object-Oriented Modelling. Knowledge Representation and Forms of Reasoning for Expert Systems. Choosing Configuration Software. Product Configuration at F.L. Smidth. 2008. XII, 283 p. 123 illus. Hardcover • $ 59.95 ISBN: 978-3-540-71448-4
How to control the product range?
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
The process of delivering customized products
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Standard products are sold by use of configuration systems
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Product modularization and configuration is: To structure and model the product assortment in order to create (configure) a customer tailored product unambiguously. Customer tailored products are configured based on predefined solutions. Clear separation between standard and special products. If you can configure it – it’s standard. Shorter lead time, improved quality, increased productivity, better dialogue with customers. Sales Engineering Planning Production Delivery Configured products Odd/ specialized products
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Product configuration systems create specifications We all use specifications in our day-to-day life. A specification is as a description which can unambiguously transfer needs or intentions from one group of people to another. Specifications: Baking recipes Assembly instructions for an item of furniture from IKEA A set of instructions for finding the way to somewhere. In industrial companies where many people are involved in developing, marketing, selling, producing and servicing products, specifications make up an important part of daily life. Specifications in industry: Descriptions of customer requirements Product drawings Lists of parts Assembly instructions Service manuals
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Specifications of a product life cycle
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Specification errors is a costly affair
Example: Actual Gross Margin (GM)
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Getting control of the product assortment and the business processes Product configuration is a means to implement a standardised product assortment. For companies delivering customer tailored products a well structured– and standardised - product assortment is a precondition for obtaining robust and effective business processes. Companies have achieved significant benefits by using product configuration systems. A modular product assortment and use of configuration systems is a part of coherent business model. Configured products Odd/ specialized products
Scania
”With a minimum of components we have achieved the difficult task of having a very flexible variety of finished products.” [Leif Östling, CEO Scania AB]
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Scania ”A customer pays more for a highly specified vehicle than for a standard product” “With Scania’s system the customer can specify the vehicle that he/she wants” “The more closely vehicles can be adapted to a transport task the better the customer operating economy will be” “The modular system is important to Scania’s development, production and product quality” “It simplifies parts management, contributes to higher degree of service” “The modular system provides a carefully balanced number of main components with great flexibility” “This allows considerably longer production runs that is possible in a conventional product system”
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Scania GPRT 4-series Variants <1000 50.000 >50.000 Assembly time 100% 75% 50% Storing (max) 4 months 30 days 10 days Storing (average) 2 months 15 days 5 days Robotic welding 0% 60% 80% Scania GPRT 4-series Effects from modularisation Source: Modular Management
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
CTO and ETO processes Configure-to-order (CTO) Well defined offerings to the market Predefined modules and well defined rules for configuration Complete specification at order entry Well defined sales and ordering process with defined spec’s in handovers Responsibilities well defined (due to predefined products and activities) Increased support of IT Well defined process responsibility Engineer-to-order ETO Outside the product range for standard customization Not full specification at order entry More complexity and less predictability in the order handling process – products and activities not fully predefined SEMC Configuration Market Unit Production CTO ETO Customer configuration
Lars Hvam, Centre for Product Modelling, DTU www.productmodels.org
Definition of the CTO product range The CTO process is based on a definition of the CTO product range. That is a definition of standard modules and components and rules for combining these into a complete customer tailored product. The CTO product range is defined based on a conceptual model of the entire product range across product models and product families and an analysis of which modules/ components and combinations of modules/ components leads to significant complexity and increased lead times in the ordering process. The product range is modeled and defined from a customer view with a definition of feature packages and offerings to the market, an engineering view with definition of technologies and a part view with definition of manufacturing BOM’s. Linking the three views and making decisions on preferred solutions leads to a definition of the CTO product range with short and predictable lead time.
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