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Download Configurability Strategy White Paper from Access Commerce

The Spectrum of To-Order Products

Pick-to-Order (PTO) – products usually shipped from stock inventory, for example, catalog items with optional accessories shipped with the catalog item.
Assemble-to-Order (ATO) – products with standard sets of predefined features and options, from which unique product configurations are developed by the customer selecting specific features and options; for example, computers ordered over the Internet.
Configure-to-Order (CTO) – products based on consultative dialogue with the customer, through Web interface, to address specific requirements. The products have been predesigned in computer-aided-design (CAD) models or parameterized documents, but not predefined with specific part numbers; for example, products with dimensional and spatial requirements, such as hydraulic actuators, and windows and doors.
Engineer-to-Order (ETO) – the most complex products that during configuring must interface with product development activities and tools, such as CAD software, design rules and other expert IT systems that can support development of configuration, pricing, and complete documentation over a typically iterative proposal cycle; for example, electrical distribution systems.

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Configurability Strategy - A Competitive Advantage

Executive Guide

Developing Configurable Products

A robust configurability strategy capitalizes on the power of a product configurator, initiated in concert with several related elements of product development - a set of activities, tools and methods spanning concept generation, performance planning, design and testing, and the commercialization of new products.

Product development encompasses a vast array of engineering design software tools and methods. However, only those directly related to exploiting configurability are briefly described in this guide: platform planning, product modularization, parts standardization, design for manufacturing and assembly, product line rationalization and product lifecycle management (PLM). The extended functionality of a product configurator is explained in more detail.

First, it is important to recognize that the following widely recognized axioms will dramatically affect product development:

The early stages of product development result in 70-80% of committed direct product cost.

Engineering changes, later in the product lifecycle, become exponentially more expensive to incorporate.

Clearly, therefore, design personnel must actively pursue cost avoidance during product development, not after release to manufacturing when opportunities for product cost reduction are minimal. Manufacturing and supplier participation from the beginning is essential – “throwing the prints over the wall to manufacturing” cannot be tolerated.

All of the following elements share a common goal: gaining more product options and variations – with less or more efficient use of resources.

Platform Planning - designing components (parts and assemblies) that are widely shared by product families, and from which numerous derivative products can be designed and produced. (2)

The automobile manufacturer’s efforts to derive more car models from fewer major components, such as a chassis, are a prime example of this cost reduction thinking.

One output from platform planning is a Concept (or Generic) bill of material (BOM). It defines marketing factors, major assemblies, required performance and target pricing. This special BOM is the basis for more detailed product development in the following related elements.

Product Modularization - developing smaller sub-systems to be able to function properly when assembled and tested as an end item.

It is required for a configurability strategy and is an effective design approach if precise, unambiguous and complete.

The tangible goals of product modularization are to:

Avoid the unnecessary cost of designing new components for each order to meet individual customer requirements

Encourage parts reuse in as many product families as possible

Gain higher product quality

Significantly, modularization facilitates the use of product configurators and enables a postponement strategy – delaying the point of product differentiation to the latest possible time in the supply network.



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