scholarly journals Reduction of Product Portfolio Complexity Based on Process Analysis

Author(s):  
Aleksandra Staskiewicz ◽  
Lars Hvam ◽  
Anders Haug

The increased demand for product variety has implied that many manufacturing companies are struggling with managing product complexity. This article suggests a framework for combined modeling of product variants and the process flow in production and assembly for customized products. The aim of the framework is to create a visual model that illustrates the product variety relative to the process flow and provides transparency of product variety in the different process steps. Literature has suggested various methods and techniques. These provide means for reducing complexity based on analysis of the end product, but do not pay much attention to understanding where in the production and assembly processes, this variance occurs. The suggested models form a basis for analyzing and reducing product complexity based on a visual model of the product variety in each process step. The models gave rise to a reduction of the SKUs with 33% without losing product variety offered to the end customer. The initial test of the framework and models in the case company showed that the models can provide new insight into the product variety, which forms a solid basis for making decisions on reducing product portfolio variety and adjusting the order decoupling point.

Author(s):  
Sridhar Kota ◽  
Kannan Sethuraman

Abstract Majority of companies develop a family of products and many new product variations are added to the product portfolio regularly to meet changing market needs and/or to attract new customer base. Although, the core functionality remains essentially unchanged across all products within a family, new functions, new feature combinations and new technologies are incorporated into each new product. The component variations, commonly referred to as “complexity”, grow exponentially resulting in loss of productivity and/or quality. The challenge lies in effective management of product variations in the design studies and on the manufacturing floor. The key is to minimize non-value added variations across models within a product family without limiting customer choices. Although the benefits of standardization are widely known and most companies do standardize stock components such as fasteners, they are far from standardizing their product -specific core components and thus fail to reap significant benefits in quality and cost. Through this research, we are developing new methodologies for improved management of product variety to achieve higher productivity. In this paper, we discuss the factors that contribute to product complexity in general, and present an objective measure, called the Product Line Commonality Index, to capture the level of part commonality in a product family. Through our Walkman case study, we illustrate robust design/manufacturing strategies, including modularity and postponement of product differentiation, that help minimize non-value added variation across models within a product family1 without limiting customer choices. Finally, we present a simple and yet a powerful method of benchmarking product families or companies in their ability to share parts effectively (modularity) and reduce the total number of parts (multi-functionality) used in product families.


2021 ◽  
Vol 1 ◽  
pp. 2791-2800
Author(s):  
Jarkko Pakkanen ◽  
Teuvo Heikkinen ◽  
Nillo Adlin ◽  
Timo Lehtonen ◽  
Janne Mämmelä ◽  
...  

AbstractThe paper studies what kind of support could be applied to the management of partly configurable modular systems. The main tasks of product management, product portfolio management and product variety management are defined. In addition, a partly configurable product structure and modular system are defined. Because the limited support in the literature for managing partly configurable modular systems, the article reviews previous product development cases in which authors have been involved on lessons learnt basis, i.e., if the methods and tools used in the cases could provide support for the research objective. As a result, the existing definition of the modular system should be extended by the concepts of non-module and design decision sequence description when dealing with partly configurable modular systems. This is because engineer-to-order should be made possible in cases where it brings clear added value to the customer compared to completely pre-defined solutions that may limit the customer's interest in the offering. Tools to assess the impact of changes to the product offering are required. These should be taken into account in frameworks that are used in method and tool development.


2018 ◽  
Vol 11 (2) ◽  
pp. 174-201 ◽  
Author(s):  
Gabriella Engström ◽  
Kristina Sollander ◽  
Per Hilletofth ◽  
David Eriksson

PurposeThe purpose of this study is to explore reshoring drivers and barriers from a Swedish manufacturing perspective.Design/methodology/approachThis paper is a case study, including four Swedish manufacturing companies, with focus on drivers and barriers from the context of the Swedish manufacturing industry. A literature review of previously established drivers and barriers is used to map out the empirical findings and thereby identify potential gaps between the current body of literature and drivers and barriers from a Swedish manufacturing context.FindingsThe findings of the study suggest that quality issues continue to be one of the strongest reshoring drivers. Except for product quality, quality is also connected to host country’s infrastructure, communication and service. The supply chain perspective is a source of several drivers and is identified as a perspective often overlooked in offshoring decisions. Barriers related to firm specifics were more elaborately discussed by the companies, especially concerning calculation of location decision and the need to invest in resources, which allows for a higher level of capacity at the home country facility.Research limitations/implicationsThe study develops a structured table of reshoring drivers and barriers which can serve as a base for future research. Future research on the calculation of location decisions is deemed as a crucial step to further understand reshoring and aid companies in the decision-making process.Practical implicationsThe drivers and barriers identified in the study can give practitioners insight into reshoring from the perspective of the Swedish manufacturing industry and thus aid in future manufacturing location decisions. The table of drivers and barriers can also be important to understand how Sweden can strengthen its competitive advantage and motivate more companies to reshore manufacturing.Originality/valueThis is one of only few papers from the Nordic countries and also one of few case studies examining reshoring in manufacturing companies.


2021 ◽  
Vol 7 (2) ◽  
pp. 1-7
Author(s):  
Nurul Sima Mohamad Shariff ◽  
Nur Hayani Izzati Abd Hamid

The world has been affected by the COVID-19 outbreak recently, affecting the economy worldwide. Due to the booming of online activities, especially online shopping, this study is interested in finding the relationship between factors affecting consumers’ buying behavior on online shopping in Malaysia during the COVID-19 pandemic. The least studies related to this issue is needed in Malaysia to further understand the behavior of the consumers on online shopping. Based on available literatures, the factors of interest were trust, convenience, price, product variety and promotion on consumers’ buying behavior in Malaysia. The study employed survey procedures to collect the data, whereby online questionnaires were disseminated and recorded from a total of 335 respondents. The data was then analysed using several statistical analyses, namely pilot test, descriptive statistics and an ordered probit model.  The result from an ordered probit model indicated that convenience, product variety, trust and promotion affected the Malaysian consumers’ buying behavior during the pandemic. Only price showed an insignificant impact on online shopping. This gave the sellers insight into understanding the consumers’ buying behavior on the online platform by planning marketing strategies to fascinate more customers.


2021 ◽  
Vol 27 (2) ◽  
pp. 638-657
Author(s):  
Fredrik Milani ◽  
Luciano Garcia-Banuelos ◽  
Svitlana Filipova ◽  
Mariia Markovska

PurposeBlockchain technology is increasingly positioned as a promising and disruptive technology. Such a promise has attracted companies to explore how blockchain technology can be used to gain significant benefits. Process models play a cardinal role when seeking to improve business processes as they are the foundation of process analysis and redesign. This paper examines how blockchain-oriented processes can be conceptually modelled with activity- (BPMN) and artifact-centric (CMMN) modelling paradigms.Design/methodology/approachThis paper discusses how commonly occurring patterns, specific to block-chain-based applications, can be modelled with BPMN and CMMN. Furthermore, the advantages and disadvantages of both notations for accurately representing blockchain-specific patterns are discussed.FindingsThe main finding of this paper is that neither BPMN nor CMMN can adequately and accurately represent certain patterns specific for blockchain-oriented processes. BPMN, while supporting most of the patterns, does not provide sufficient support to represent tokenization. CMMN, on the other hand, does not provide support to distinguish between activities executed and data stored on-chain versus off-chain.Originality/valueThe paper provides insight into the strengths and weaknesses of BPMN and CMMN for modelling processes to be supported by blockchain. This will serve to aid analysts to produce better process models for communication purposes and, thereby, facilitate development of blockchain-based solutions.


Author(s):  
Erik J. Zamirowski ◽  
Kevin N. Otto

Abstract This paper proposes a method for identifying product portfolio architecture alternatives based upon customer needs and product function. Customer needs and uses are interpreted according to the variation in performance target values across the market and within the set of individual customer uses. Product uses are represented by function structures consisting of the functions necessary for achieving the use. These individual product use function structures are combined into a monolithic function structure to represent the entire product portfolio. This monolith is then partitioned according to function and product variety heuristics into function clusters that anticipate product modules. This candidate modularity can then be used to deliver product variety across the product portfolio given functional constraints. A portfolio of xerographic products is used as the working example.


Author(s):  
Sayel Ramadhan

The main purpose of this study is to provide evidence on the contextual featutres of firms adopting Activity-Based Costing (ABC) compared to those not adopting ABC. The study examines certain organisational and business environment variables which appear to have influenced the adoption of ABC. Based on a review of the relevant literature, it is hypothesised that firm size, the amount of overhead costs, the level of product variety, production complexity, the degree of competition, and the degree of computer usage are factors which encourage firms to adopt ABC. A list of manufacturing companies operating in Bahrain (332 firms) was obtained from the Ministry of Industry. Firms with (50) workers or more were selected for the study. The reason for limiting the study to firms with this number of workers is that small firms are less likely to be able to afford the cost of adopting and implementing an ABC system and its required changes. Total of (111) firms met this size criterion and a questionnaire was developed and distributed to the entire sample. Fifty seven questionnaires were returned completed; a response rate of (51.4%). The results of the study show that a small percentage of Bahraini manufacturing companies are adopting or planning to adopt ABC systems (26.3%). There were significant relationships between the adoption of ABC and the variables selected for the study except production complexity and the degree of computer usage. The results are consistent with previous research. However, further research using a case study approach with semi-structured interviews could be conducted in those firms which claim to have adopted ABC. This approach might be fruitful and would provide more insight in identifying the characteristics of ABC companies in the Bahraini context.


Author(s):  
Gad Allon ◽  
Jan Van Mieghem ◽  
Ilya Kolesov

HP sells configure-to-order products. With millions of part combinations going into an order, the challenge is deciding which parts to keep in the portfolio to balance costs with revenues. The case explains how one would approach this problem before product introduction, but focuses on managing the existing portfolio.Students will develop a systematic, data-driven approach to decide on the best product portfolio to sell for a configure-to-order business. Which SKUs are candidates for a “global core” product offering? For an extended offering? For elimination?


Energy ◽  
2019 ◽  
Vol 189 ◽  
pp. 116159 ◽  
Author(s):  
Dariusz Kardaś ◽  
Paulina Hercel ◽  
Sylwia Polesek-Karczewska ◽  
Izabela Wardach-Świȩcicka

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sophie Richard ◽  
Robert Pellerin ◽  
Jocelyn Bellemare ◽  
Nathalie Perrier

PurposeThe purpose of this paper is to address the difficulties faced by manufacturing enterprises by providing a project portfolio management approach supporting the selection and prioritization of various Industry 4.0 projects where business process analysis is used to ensure the strategic alignment and value of the project portfolio.Design/methodology/approachThe design research methodology, a mixed applied research methodology, was used to develop and test the proposed approach.FindingsDespite the growing interest of the scientific and industrial communities in I4.0, it seems that there is no method by which manufacturing companies can select a large number of improvement projects. Moreover, studies tend to focus on the evaluation and implementation of a single technology, while the transformation of an intelligent plant requires the consolidation and coordination of many initiatives to achieve a global objective.Originality/valueThe proposed project portfolio management model offers support to enterprises during their digital transformation and improves their processes by integrating technology levers through consistent and achievable selection of I4.0 initiatives while meeting strategic goals and objectives.


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