Lars Hvam

Improving the quotation process with product configuration

How can product configuration support the process of engineering highly complex industrial products? This article describes how an IT-based product configuration system was developed to support the process of making budget quotations. The article is based on a research project carried out as collaboration between the Centre for Product Modelling (CPM) at the Technical University of Denmark and a Danish cement plant manufacturer. A procedure for building product models developed by the Centre for Product Modelling was tested empirically at the company during the project. The system was developed from 1998 to 1999, and the configuration system has now been in operation for more than three years during which period significant results have been achieved. The lead-time for making budget quotations has been reduced from 2-5 weeks to 1-3 days. The quotations are more consistent and easy to read with focus on the big issues of the cement plant. The configuration system makes it possible to optimise the cement factories with respect to performance, an increased use of the companys components, and with respect to the use of previously manufactured components. Finally, the engineering resources used for making a budget quotation have been significantly reduced.

A procedure for building product models

This article presents a procedure for building product models to support the specification processes dealing with sales, design of product variants and production preparation. The procedure includes, as the first phase, an analysis and redesign of the business processes, which are to be supported with product models. The next phase includes an analysis of the product assortment, and the set up of a so-called product master. Finally the product model is designed and implemented using object oriented modelling. The procedure is developed in order to ensure that the product models constructed are fit for the business processes they support, and properly structured and documented, in order to facilitate that the systems can be maintained continually and further developed. The research has been carried out at the Centre for Industrialisation of Engineering, Department of Manufacturing Engineering, Technical University of Denmark.

Mass customisation in the electronics industry: based on modular products and product configuration

American Power Conversion (APC), a company in the electronics industry, has used the principles of mass customisation to achieve major improvements in its efficiency and performance. APC sells, designs, produces, delivers, and installs large complex infrastructure systems for data centres, and components for these systems. At the heart of its mass customisation strategy are a module-based product range and the use of product configuration systems for sales and order processing. In addition, the company has implemented a manufacturing concept, which involves the mass production of standard components in the Far East, and customer order-based final assembly based on customer orders at various production sites around the world within close customer proximity. The results of applying mass customisation principles include a reduction of the overall delivery time for a complete system from around 400 to 16 days. Also, production costs were significantly reduced. At the same time, the companys capability for introducing new products has increased.

Definition and evaluation of product configurator development strategies

Product configurators represent one of the most successful applications of artificial intelligence principles. Product configurators are a subtype of software-based expert systems with a focus on the creation of product specifications. The use of product configurators has resulted in many positive effects in engineering-oriented companies such as reduced lead times, fewer errors, shorter learning periods for new employees, etc. Unfortunately, many configuration projects also fail because the task of developing the configurator turns out to be much more difficult and time-consuming than anticipated. Thus, it is crucial to apply the appropriate strategy. However, the literature does not discuss different strategic alternatives in a detailed manner; it only provides generalised recommendations of single strategies. To deal with this issue, this paper defines and compares seven different strategies for the development of product configurators. The relevance of the defined strategies is supported by seven named case studies.

Reengineering of the quotation process: application of knowledge based systems

Is it possible to support the engineering processes with intelligent product models when the knowledge and information work is very complex? This paper describes how IT‐supported product configuration can support the complex engineering activities carried out in the quotation processes. The research has been carried out at the Centre for Product Modelling at the Technical University of Denmark in co‐operation with F.L. Smidth, a Danish cement plant manufacturer with a world‐wide leading position. The redesign of the quotation process lasted three years but, as the paper illustrates, remarkable results have been accomplished. The lead‐time for making quotations was reduced from two to four weeks to one to two days. A better quality of quotes was obtained, and the direct consumption of engineering resources for making quotations was reduced from five man‐weeks to one to two man‐days.

CRC cards for product modelling

This paper describes the CRC (class, responsibility, collaboration) modelling process for building product models. The proposed CRC modelling process includes: organising the CRC modelling team, educating relevant personnel, and iteratively performing the steps of CRC modelling (find classes, find responsibilities, define collaborators, etc.). CRC modelling covers some of the basic work before the actual implementation of the product model in a standard configuration software. This article focuses on the application of CRC-cards in the analysis phase.The concepts and methods for modelling product knowledge have been tested in Danish industrial companies. The article presents a case study from Alfa Laval Separation.

A Framework for Determining Product Modularity Levels

The application of modular products is seen as an important enabler for delivering customized products competitively. However, many companies struggle to find ways to implement modular products in a manner that suits their particular business. The literature includes examples of how modular products have been implemented in specific types of companies (mostly mass producers), but little guidance exists on how to identify the right level of modularity for other types of companies (such as engineer-to-order companies). In this article, we address this gap by suggesting a framework that categorizes the different types of modularity, where the categories fit different types of companies. More specifically, we introduce the Modularity Application Matrix – a conceptual tool that leads to a better understanding of partial modularization in relation to products. Through four case studies, its application in practice is illustrated. This article thereby contributes with new theoretical developments as well as a practical tool for practitioners in industries using partial modularization, such as the construction and building industry.

The impact of product configurators on lead times in engineering-oriented companies

Abstract This paper presents a study of how the use of product configurators affects business processes of engineering-oriented companies. A literature study shows that only a minor part of product configuration research deals with the effects of product configuration, and that the ones that do are mostly vague when reporting the effects of configurator projects. Only six cases were identified, which provide estimates of the actual size of lead time reduction achieved from product configurators. To broaden this knowledge, this paper presents the results of a study of 14 companies concerning the impact of product configurators on business processes related to the creation of quotes and detailed product specifications. The study documents impressive results of the application of configurator technology. For example, in the data retrieved the use of configurators was estimated to have implied up to a 99.9% reduction of the quotation lead time with an average estimated reduction of 85.5%.

Efficient on‐site construction: learning points from a German platform for housing

Purpose – This research aims to analyse the implementation of a German platform for housing projects through a successful case on modern methods of construction featuring efficient on‐site construction. Through continuous development, the platform has been carefully designed to suit a carefully selected market – optimising cost and value. Based on the platform, the company has managed to create a high‐quality product at low cost. In fact, they have managed to reduce costs by more than 30 per cent, enabling the company to sell houses to people that normally would not be able to afford a house of their own.Design/methodology/approach – The paper adopts a case study approach combining a qualitative collection of empirical material with an analytical framework drawing upon classical modelling techniques for development of product platforms.Findings – The paper identifies some central learning points from the German platform such as: platform does not imply that “off‐site manufacturing” is the most optimal pro...

Mass customisation of process plants

This case study describes how F.L.Smidth A/S, a manufacturer of large processing plants for cement production, has applied the principles of mass customisation in the area of highly complex, custom engineered products. The company has based its sales process on a configuration system to achieve a more efficient sales and engineering process. The implementation of the configuration system was accompanied by a radical redefinition of the modular structure of the companys product architectures. The project was carried out in cooperation with the Centre for Product Modelling (CPM) at the Technical University of Denmark and illustrates the methods developed at the CPM for the construction of configuration systems. The case analyses the implementation process of the configuration system and documents the results attained after implementation.