Product Configuration in the Full Product Lifecycle

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1 Product Configuration in the Full Product Lifecycle Prof. Dr. Henrik Reif Andersen CEO and Founder, Configit

2 About Configit Founded in 2000 based on academic research by the founders on handling large solution spaces Enabled manufacturing companies to handle configurable products in all relevant business processes More than 2 million users SAP Certified Partner D&B AAA rated Revenue growth: 10x over last 5 years US HQ, Atlanta German HQ, Langenfeld (Köln/Düsseldorf) Warwick Chennai Global HQ, Copenhagen Page 2

3 CPQ and CLM solutions: 17 years of proven track record, >200 projects Industrial machinery & components, high tech, medical equipment Automotive Other Industries Page 3

4 CONFIGURATION LIFECYCLE MANAGEMENT

5 Configuration Lifecycle Management Configuration Lifecycle Management (CLM) is the management of all configuration definitions and configurations across all involved business processes applied throughout the lifecycle of a product. Page 5

6 CPQ (configure-price-quote): part of CLM CPQ CLM Sell Resell Deliver Install Develop Price Market Sell Source Build Deliver Maintain Page 6

7 Joining data sources for a single source of truth CPQ Compile Consume Develop Price Market Sell Sell Resell CLM Source Build Deliver Deliver Install Maintain Converge Page 7

8 Joining sources Page 8

9 Converge and consume Converge Compile Consume Engineering & homologation rules CPQ for resellers Market rules Sales rules Valid combinations E-commerce portal CPQ for internal sales Offline CPQ Page 9

10 VT: simple but powerful idea Valid configurations can be thought of as a (high-dimensional) solution space All possible configurations Valid configurations according to rules Page 10

11 Feature strings as the link between different views Page 11

12 One Feature String, Many Views Customer order choices 2.0l turbo Auto 5 door Red Market spec. & default choices Engineering & homologation rules Leather Sunroof Sports pack DATE Xenon HFS HRS RHD 433MHz LWN Configuration Solve Page 12

13 VT APPLICATION 1: MODEL VALIDATION

14 Google: the master of search Google indexes a big subset of the estimated existing 130 * web-pages That is 17,000 web-pages per each of the 7.5 billion living humans! Page 14

15 But that s peanuts... A Range Rover Sport exists in valid configurations It has around 3000 features and 300 families (+ time dimension) That is 133 billion different vehicles per human being... Page 15

16 Buildable and orderable combinations as it should be All possible feature combinations Nonbuildable feature string Buildable combinations Orderable combinations Sold Orderable (and buildable) feature string Page 16

17 An error state scenario: Non-aligned definitions All possible feature combinations Buildable combinations Orderable combinations Sold Orderable (and buildable) feature string Orderable but non-buildable feature string! Sold but nonbuildable feature string!! Page 17

18 APPLICATION 2: INTERACTIVE CONFIGURATION

19 Example of Interactive Configuration: 8-Queens Problem 4,426,165,368 combinations of which 92 are valid Live at: Page 19

20 Example of Interactive Configuration: 8-Queens Problem 4,426,165,368 combinations of which 92 are valid Live at: 8-queen-problem Page 20

21 Example of Interactive Configuration: 8-Queens Problem 4,426,165,368 combinations of which 92 are valid Live at: 8-queen-problem Page 21

22 Example of Interactive Configuration: 8-Queens Problem 4,426,165,368 combinations of which 92 are valid Live at: 8-queen-problem Page 22

23 Example of Interactive Configuration: 8-Queens Problem 4,426,165,368 combinations of which 92 are valid Live at: 8-queen-problem Page 23

24 Interactive configuration Any sequence Guiding feedback No dead paths Responsive Scalable Due to the pre-compiled solutions space, VTs are perfect for this. Response time is in the milliseconds range. (Corresponding to a full solve including technical and commercial features on each click. In fact, 100s of concurrent solves in order to show effect on all options.) Page 24

25 APPLICATION 3: COMPLEXITY MANAGEMENT

26 One source of configuration information many views and analyses Page 26

27 APPLICATION 4: BOM MANAGEMENT

28 Part Ace / Feature BOM structure X0 Audio Nokya Xenon Headlamp Heated Seats Front Quantity 1 Configurable Y Kenwood B390 Kenwood Speakers K900 Meridian X100 JBL Speakers J350i Leather Luxury Front, 6x6 way Quantity 1 Quantity 2 Selection Condition Quantity 1 Selection Condition Quantity 6 Selection Condition Quantity 1 Selection Condition Quantity 8 Selection Condition if XEN Quantity 2 Configurable Y Selection Condition if Y_HEATF or Y_HEATA Quantity 2 Selection Condition if BASE_AUD and USA if BASE_AUD and USA if BASE_AUD and not(usa) if BASE_AUD and not(usa) if LEA_INT USA BASE_AUD XEN Y_HEATF LEA_INT... Feat n Feat_X1 Feat_Y2 Feat_B2 Feat_A1... Feat n X0 Audio Nokya Xenon Headlamp Heated Seats Front Quantity 1 Kenwood B390 Kenwood Speakers K900 Meridian X100 JBL Speakers J350i Leather Luxury Front, 6x6 way Quantity 1 Quantity 2 Quantity 2 Quantity 1 Quantity 6 Quantity 2 Suede Cloth Quantity 2 Selection Condition if not(lea_int) Suede Cloth Super BOM + Feature String = BOM

29 BOM analysis All possible feature combinations Allowed and has a BOM definition Defined allowed combinations Covered by BOM selection conditions BOM definition but not allowed: zero runners Allowed but without a BOM Page 29

30 APPLICATION 5: LOGISTICS PLANNING

31 Order Bank Predictions The order bank is used in the material acquisition process Resource planning, production planning, finance predictions etc. also depends on the order bank Objective: to have as complete and accurate an order bank as possible The order bank is only complete for the immediate future Estimates are used to fill in free slots in the order bank Orders Order Bank Capacity The estimates are based on statistical analysis of historical feature take-rates and predicted take rates based on marketing campaigns, effectivity on features, changes in regulations, etc. Sometimes partial or complete resolving of the order bank is necessary Time Page 31

32 Generating dummy orders for predictive analysis Orders / Slots Roll-over Order Bank Capacity Dummy Orders Customer Orders Time Page 32

33 CLM EXAMPLES

34 Example 450 product ranges 2500 models >100 option families >500k engineering rules

35 Convergence and consumption of configuration data SAP (VC, IPC) Non-SAP rules Virtual Table Compiler Virtual Table Configuration Engine Non-SAP systems SAP (ERP, CRM, Hybris, Visual Enterprise, ZeroLight,...) Configuration data is valuable! Knowledge bases contain many man-years of work. Why not make the most of it? Reusing both on the modelling and the configurator side: Reuse of legacy data for quick migration to SAP environment Mixing rule bases from SAP and non-sap systems Consuming rule logic in both SAP and non-sap systems 450 product ranges 2500 models > 100 option families > 500k engineering rules Page 35

36 CLM + CPQ at CNH CPQ Dealer portal Offline reseller solution Internal sales CLM Sell Resell Deliver Install Develop Price Market Sell Source Build Deliver Maintain Engineering rules defined in custom PLM system Pricing from SAP Market information added by Configit Model Page 36

37 Example: Embedded configuration of wind turbines Page 37

38 Configuration of wind turbines 10s of components connected 50,000 parameters in the controlling software 150 engineers defining parameters and rules between them Page 38

39 CLM at Vestas CLM Sell Resell Deliver Install Develop Price Market Sell Source Build Deliver Maintain Engineering team defines product models with all configuration rules Service team use configurator service tool to configure wind turbines Page 39

40 CLM + CPQ at ABB Page 40

41 Part of ABB solution: Rack configuration Page 41

42 CLM at ABB CPQ Dealer portal Internal sales CLM Sell Resell Deliver Install Develop Price Market Sell Source Build Deliver Maintain Engineering team defines product models with all configuration rules. Many teams collaborating Region specific backend systems and region specific offerings and pricing Page 42

43 QUESTIONS?

44 Legal notes. This presentation is Copyright Configit A/S and may not be distributed without permission from Configit. This presentation is strictly confidential and only intended for those receiving it directly from Configit. Configit, the Configit logo, Virtual Tabulation, Configit Product Modeler, Configit Runtime, Configit Quote for SAP, Configit Ace, Configit Model and other Configit product names are trademarks or registered trademarks of Configit A/S. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies.

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