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product configuration
 | What is product configuration? |
 | Configuration is a bunch of methods and techniques for managing all aspects of configurable products, from design to production to sales. |
 | A product is configurable if it is available in a (high) number of variants; that is, of similar but distinct versions. |
| Product configuration is often also called variant configuration, especially in the SAP world. |
| This is what the SAP documentation has to say introductorily: |
| Variant configuration is for manufacturing complex products. [..] The important thing is to react quickly to customers' requirements. |
| The customer determines the features of the product. A customer buying a car, for example, can choose the features of the car and combine these features as required. |
| The basic techniques of configuration were developed in the area of artificial intelligence, but it's not sexy to dwell on that nowadays. |
| so shoot us, we're not sexy. |
| A typical example is a car. |
| A specific model, say a '53 Studebaker Coupe, might at first glance appear well-defined, but actually leaves a lot of questions open: color, engine type, transmission type, power steering (yes/no), radio (yes/no, model), upholstery (leather, plastic, cloth), wheels (type of tire, rims) etc. |
| So, to be well-defined -- that is, to be sure you know what you are getting, and the manufacturer knows what you want -- your variant must specify each of these attributes. |
| So when you are ordering your '53 Studebaker Coupe, you say, I'd like a '53 Studebaker Coupe with: |
| blue metallic paint |
| Mr. Fusion 3TW engine |
| stick shift 6 gear 6-wheel drive |
| power steering |
| solid state mp3 player / radio / GPS unit model "Wintermute" |
| fake alpaca leather upholstery |
| etc. etc. |
| Formally, you are specifying a configuration, or variant, of the configurable product "'53 Studebaker Coupe", by giving the product name, together with a set of attribute values. |
| PRODUCT_ID = Z_53_STUDE_COUP |
| COLOR = BLUE_METALLIC |
| ENGINE = MR._FUSION_3TW |
| TRANSMISSION = STICK_SHIFT_6_GEAR_6WD |
| STEERING = POWER |
| RADIO = MODEL_WINTERMUTE |
| UPHOLSTERY = FAKE_ALPACA_LEATHER |
| The bunch of methods and techniques we call product configuration exist to manage these attributes and their interrelationships. |
| A product configurator is a program, a kind of expert system, that "knows" all about the different options and their interrelationships (and their effect on the price) that are available for the product. |
| Now, rather than enumerating and defining each and every of the kadzillion possible combinations -- even if it's just to say they can't be built, or you don't want to -- rather than listing them, you can define an expert system that knows all about them. |
| The expert system "knows", for instance, that you can't get the color bright orange together with the turbo diesel engine, but you can with the V8, albeit only if you also take power steering. |
| It also "knows" what all of these cost, both as idividual options, and as discounted combination packages. |
| And it "knows" how to get this particular variant of the our built, should the customer actually order it: |
| what the resulting product structure is, |
| what individual components have to be built, and how, or have to be procured from a supplier |
| what individual steps, and in which sequence, are necessary in the factory |
| The idea here is also called mass customization: we apply every bit of automation we possibly can, from offer to order to production to delivery, while at the same time offering the customer a maximum of choice. |
| Another story: |
| Streamlining customer-specific production |
| Modern product configuration can be seen as applying the methods of mass production -- the beneficial ones -- to the task of customer-specific production. |
| Buzz words |
| CRM Customer relationship management |
| SCM Supply-chain management |
| MTO, BTO, ATO, CTO Make, Build, Assemble, Configure to order |
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