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 Cone Filters Flex Hose Dust Bin Clean Air Out

Cyclone Air Filter Motor Blower Outlet Duct Blower Cyclone Outer Inlet Dust Bin Flex Hose Clean Air Out Cone Outer Cylinder Motor Cyclone Outlet Blower Outlet Duct Muffler Filters Blower Inlet

Confugurable Parameters Blower Capacity Motor Size Diameter Outlet Length Material Motor Blower Outlet Duct Diameter Bend Degree Material Muffler Noise Reduction Duct Blower Inlet Air Flow Diameter Length Material Cyclone Outlet Inlet Outer Cylinder Overall Total Capacity Mass Balance Energy Balance Noise Level Mounting Muffler Cyclone Air Flow Inner Diameter Outer Diameter Height Material Cone Filters Flex Hoze Diameter Length Material Filters Air Flow Diameter Length Filtration Capability Cleaning Method Flex Hose Dust Bin Diameter Height Material Capacity How to Empty Dust Bin Clean Air Out

Chamber Structure Sales Configuration Type of Air Degree of Pollution Air Volume Industry Requirements . . . . leads to: Height Diameter Material Surface Production Configuration Upper Mounting Ring - Diameter, # Holes Four Upper Cone Parts - Hight, Width, Material, Surface - Bending work, Welding time Four Lower Cone Parts Two Assemply Rings - Mounting time Outlet Tube - Hight, Diameter, Mounting Mounting, Grinding, Finishing Packaging, Transportation . . . Procurement Configuration Material & Surface Squaremeters Time to Cut & Bend Meters of Welding Grinding and 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 6 Extrusion Presses Fully Automated Factory Total Cost Control of all Processes and Machines Increasing Production Cost 10,000 Enquiries per Month 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 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