1. 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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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