For Configure-to-Order (CTO) and Engineer-to-Order (ETO) products, performance-oriented Definition Logic is widely used. To illustrate, a customer designated need for a truck to haul a specified load, e.g., 20 tons, will drive the requirements for a specific chassis. Other examples include hydraulic pumps and industrial equipment. A variation of performance-oriented modeling is the ability to configure dimensional and spatial products, like office furniture systems.

For all “To-Order” products, the modeling results must include the ability to:

Create and maintain the configurable product models by non-programmer personnel

Deploy across numerous sales channels with a single architecture

Link to ERP and SCM systems to provide information seamlessly

Visualize the product

Configure a unique product automatically and quickly – without continuous intervention by engineering personnel during the LTO process

Generate, dynamically, manufacturing and engineering BOMs and routings

For CTO and ETO products, these additional functionalities are essential:

Interfaces to computer-aided design (CAD) models

Automatic creation of related files and documents by parametric logic

Product Lifecycle Management (PLM) – a strategic business approach for collaborative creation, dissemination and use of product data across the extended enterprise from concept to end of life – integrating people, processes and information. (4)

PLM capabilities are highly desirable – some say mandatory – to ensure an effective configurability strategy. They provide a multitude of software tools, including the ability to:

Enable configuration management – ensuring product documentation integrity over the life of the product – using PLM data vault management functionality to rigorously control all versions of all product data files, including the Definition Logic

Share product visualization

Ensure timely distribution of product information using electronic workflow, including attached documents

For ETO product specifications, additional PLM capabilities are significant when more design effort is required to develop a complete configuration, other than provided by Definition Logic. These include the ability to:

Share configuration and design files with suppliers and customers

Perform collaborative product design with suppliers

Conduct material and vendor sourcing by engineering personnel

Product Development: The Last Steps – The last step before releasing a configurable product model for use in the execution phase is to completely validate it through structured testing, accomplished with full participation of engineering personnel. When validated, the operational product model eliminates the costly need for engineers to constantly validate completed configurations – a major benefit.

A validated model ensures a positive customer experience during the critical “customer facing” LTO process, for instance, by not offering a unique configuration that could not be built.

Furthermore, the validated model can then be used in future product development modeling efforts for “what-if” simulations, reducing the new product introduction cycle time.

Optimizing Configurability: A Balancing Act

To reemphasize, the goal is to gain competitive advantage by offering a greater variety of product options and variations with less, or more efficient use of resources. However, unlimited variety may not be economical, risking an increase in non-value added costs.

Optimizing configurability, therefore, is a balancing act – weighing the additional value of more product options and variations compared with any additional costs required. For instance, some product modules may be more difficult and expensive to design, including the added cost of designing interfaces, as Reinersten points out. (5)