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© Zuken 2016Zuken proprietary information. Forwarding beyond the intended recipient(s) is not permitted. © Zuken 2018Slide 1 of 42
Webinar:Get your complexity under control
An introduction to handling product and variant diversity, and approaching electromechanical data management with confidence.
Wolfgang Heinrichs
Head of Strategic Solutions and e-PLM Business
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Agenda
Involved Engineering Data
What to do?
How to analyze? - The guideline
Product variety – why is it growing so fast and who is involved?
Data transparency & traceability
Feature versus Variant
Trends in the industry
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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Product variety – why is it growing so fast and who is involved?
Technology area absolute % growth over the last years
Electrical Machines, Apparatus, facilities 593 98,1%
Electronics 1.591 52,1%
Pumps und Compressor 728 47,5%
Heating-, Filter-, Air-, Cleaning technic 1.898 47,2%
Motors, Power Machines, Powertrain technology 3.645 44,9%
Mechanical Measurement technology 1.107 27,9%
Agricultural machinery, Tractors 503 27,4%
Machine Tools 2.417 16,5%
Special machines / vehicles 3.328 -9,1%
Communication Technology 3.796 -20,5%
Today’s innovation is mainly driven by Electronics and SW
Patents filed absolutely in one year versus patents filed growth path across many years
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Product variety – why is it growing so fast and who is involved?Who and what is driving the Product variety?
• Total costs of transport• Terms of payment• Total delivery time• Safety compliance• Reliability information• Re-use of the Component
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Agenda
Product variety – why is it growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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Product variety – Feature versus VariantWho and what is driving product variety?
Source: http://www.complexitymanager.de/en/
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Agenda
Product variety – why is it growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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Product variety - Trend seen in the industryWho and what is driving the Product variety?
Source: http://www.complexitymanager.de/en/
81%
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Product variety - Trend seen in the industryWho and what is driving the Product variety?
Product variety potentially allows companies to improve supply and demand alignment Leads to a number of challenges
• Product complexity, portfolio increase, additional internal process elements are required to handle the increased product variety
Spreads through all functional areas and operational processes
• Product development, logistics, production, marketing, sales, etc.
In some cases higher product variety leads to
• Higher manufacturing costs
• Greater manufacturing overhead
• Longer delivery times
• Higher inventory levels
• Higher components prices
• more complex Variation & Option matrix
Source: http://www.complexitymanager.de/en/
significant impact
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Product variety - Trend seen in the industryWho and what is driving the Product variety?
However: The goal is NOT to reduce complexity as far as possible
BUT, to find the optimum level of complexity that takes into account the benefits as well as the extra efforts generated by the increase of product variety.
Complexity is not an evil per se! Companies acknowledge the value of competitor differentiation effect
A diversified and complex product portfolio is considered as an important factor in achieving and sustaining advantage against competitors
Companies are aware of the importance of managing this complexity to realize a competitive advantage
First Conclusion: Variety-induced complexity and its management is an issue with increasing relevance in manufacturing companies
These manufacturing companies have to develop and applying innovative approaches to complexity management
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Product variety - Trend seen in the industryWho and what is driving the Product variety?
Source: St. Gallen University
Differentiating factor?
Competitive advantage?
Successfullyimplemented?
Variant and complexity management provides plenty of room for optimization
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Agenda
Product variety – why is it growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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Product variety – what to do?
It’s all about “Transparency” on variety-induced complexity: The creation of transparency is recognized as a key task by managers – but it isn’t an easy task …
Transparency is also a critical factor for managing the complexity
Managers need to know the complexity levels their company has to handle as well as the impact on its
• Processes
• Products
• Product portfolio
• Margins
• Supply chain
• And so on
Source: The complexity challenge of manufacturing companies (Schuh 1995,p.431)
Consequently, the broadening of the product portfolio and uncontrolled adding of product variants most likely leads to a competitive disadvantage!
The objective is to identify the »optimal« variety
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Steering wheel example:
25 variants in manufacturing can mean
‒ 50 variants for purchasing (dual sourcing
strategy) but only
‒ 4 variants for development due to
four different functional product
designs
Product variety – what to do?
Source: Illustration of parts belonging to a car (source: www.autchannel.com/news)
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Product variety – Product configuration ontology
Source: www.bwm.de3 Component Types:1. Stable (CS
ij) component permutations2. Voluntary (CV
ij) component permutations3. Compulsory optional component (CC
ij) permutations
Source: https://www.researchgate.net/publication/301613471
BMW
….
….
….
….
Product Family
Group / Model
Features
Physical Components
Product Configurations
….
Doors
Model
Gearing
Fuel Type
Engine (ccm)
Colour
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Product variety – Sample (simple) Variant room calculation
2 Type Standard X-Type2 Doors 2 Doors 5 Doors2 Gasoline Diesel Patrol4 Models Advantage M Sport Sport Line Urban Line2 Gearing Manual Automatic6 Engine 1,6L 1,8L 2,0L 2,5L 4,0L 4,0LX8 Colour Alpine Weiß Saphirschwarz Metallic Schwarz Uni Melbourne Rot metallic Glaciersilber metallic Mineralgrau metallic Sparkling Brown metallic Sparkling Storm metallic3 Car Tire-inches 16" 17" 18"4 Car Tire-types Standard Wheel M-Sport Wheels Sport Line Wheels Urban Line Wheels4 Steering-wheel Standard Multi-function Sport-no-whipes Sport-whipes6 Driver assistanceCamera Auto Park Head-up Speed-Limit Park Distance front Park Distance f/b
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Revenue
Cost
Product variety – what to do? “The optimal variety”
There is a specific point on the x-axis after which the impact of cost for product variety becomes more significant than the revenues. Consequently and profits start declining.To apply this concept, companies are forced to constantly determine the optimal variety that yields the maximum profit. -> Please refer to our guideline proposal on the next page.
Source: Balance of revenues and costs to define optimal variety (Rathnow 1993, p. 44; Kaiser 1995, p. 111; Danne 2009, p. 16)
The model of optimal variety only takes into account the number of variants and not the type of variant. There might be some variants which have higher complexity costs than others.
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Agenda
Product variety – why growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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Product variety – what to do? – The guideline proposal
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Product variety – what to do? – The guideline
Mastering Complexity
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Agenda
Product variety – why is it growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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It’s all about Data …..... Engineering Data ...... E/E Data ......
HIL: HW in the Loop Simulation
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Product variety – The next wave is coming soon …..
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Product variety – The next wave is coming soon …..
Future Mobility
EE Platform
Autonomous functions
Industrialization
Future structures
Mobility services
Vehicle connectivity
EnergiespeicherEnergy storage
Systems / Multi-Agents / -UsersSysteme / Multi-Agenten / -anwender
Big Data for mobilityBig Data für Mobilität
HMI of the futureHMI der Zukunft
New structuresNeue Strukturen
Future materialsZukünftige Materialienrobotic platform
Roboterplattform
Sensors of the futureSensoren der Zukunft
SafetySicherheit
RoboticsRobotik
SecuritySicherheitsmaßnahmen
Drive- / PowertrainMotorisierung
EE ArchitectureEE Architektur
AI
MBSE
ValidationValidierung
CertificationZertifizierung
CloudComputing
UX DesignUser Interface
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Industry 4.0, AI, Robots, IoT, … – The next wave is knocking already on the doors …..
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Agenda
Product variety – why growing so fast and who is involved?
Feature versus Variant
Trends in the industry
What to do?
How to analyze? - The guideline
Involved Engineering Data
Data transparency & traceability
Topic4
Topic2
Topic3
Topic1
Topic5
Topic6
Topic7
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design ….
OrganizationalAnchoring
Enabling Factors
Activity Areas
lead to
External & Internal Complexity Drivers
triggerEffectiveness and
Efficiency of Projects
Complexity Management
Conceptual Model
ProductArchitecture
ProductArchitecture
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
Protect cargo from weather
Connect to Vehicle
Minimize air drag
Support cargo loads
Suspend trailer structure
Transfer loads to road
Box / Kasten
Hitch / Anhängehaken
Fairing / Verkleidung
Bed / Ladefläche
Springs / Federn
Wheels / Reifen
A modular trailer architecture exhibiting a one-to-one mapping from functional elements to physical components
Functional Elements Components
Protect cargo from weather
Connect to Vehicle
Minimize air drag
Support cargo loads
Suspend trailer structure
Transfer loads to road
Upper Half / oberer Kasten
Lower half / unterer Kasten
Nose piece / Anhängehaken
Cargo hanging straps /
Ladebefestigung
Spring slot covers / Federabdeckung
Wheels / Reifen
An integral trailer exhibiting a complex mapping from functional elements to physical components
Functional Elements Components
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
Strategic Advantage of
modular Product development
There are multiple ways of achieving the objective of a modular product
architecture
F: Function, C: Component, M: Module
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
Case study: family of drills and their family function structure, with modules shown
RegisterBattery
Un-RegisterBattery
TransmitElectricity
Hand force
BatteryForce into Opposite handBattery
Force into Opposite hand
ConvertElec. To Motion
SwitchPower Input
SignalInput
Speedselection
Transmitselection
Transform(Ƭ,ω)
TransmitPower
PermitDrill Bit
Positioning
Finger force
7.2V DC
Finger
FingerRotary Torque
transmission
Noise, HeatForce in to finger
motorSpeed changer
slip clutch
triggerswitch
Noise
Hand
Hand
DrillHole
Object
contact
drillingHot drilled object
Hot filings
Heat in bit
Un-lockDrill Bit
ReleaseDrill Bit
RegisterDrill Bit
Bit securedHand
Force chuck
Drill Bit
Force into opposite hand
SecureDrill Bit
Drill bit
casing
Current drill modules
Heavy-duty /Professional module
Integrated module for platform alternative A
2 Integrated modules for platform alternative B
functionFunction only in the Heavy-duty and the Professional models
Noise
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
Product variants of the product family of herbicide spraying system MANKAR-Roll
1) Analysis of product variety
2) Applying the variety Allocation Model to optimize product family
3) Allocate Module drivers to Module driver specification
4) Modular sales concept with integrated aspect of ergonomics and corporate styling
5) Result of case study
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
Product variants of the product family of herbicide spraying system MANKAR-Roll
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It’s all about Data …..... Engineering Data ...... E/E Data ......
Idea / Innovation Concept Design Verification / Validation Production / Manufacturing Service
Requirements Structure Functional Product Structure Engineering Product Structure Validation Product Structure Manfucturing Product Structure Service Structure
Production Systems(ERP / MRP / MES)
As Defined As Designed As Produced As Serviced
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It’s all about Data …..... Engineering Data ...... E/E Data ......Variance structures can be very time consuming (performance) …. Have a look to the IT & Infrastructure
Tree structure representation Cross-style representation Table / Matrix representation
Same variant Product – 3 different BOM representations & algorithms
From a PDM point of view we have to distinguish two measures of BOM performance:• Time it takes to execute an algorithm• Amount of memory needed to calculate and store resultsAccordingly, there are two measures of algorithm complexity: time and spaceAnother dimension is of course the data size (file size itself, # of sheets, # of BOM positions, etc.)
Variants Space / Room
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It’s all about Data …..... Engineering Data ...... E/E Data ......Variance structures can be very time consuming….
An MRP algorithm is a time consuming algorithm, and therefore we are particularly interested in estimating the complexity of
algorithm implementation in terms of the time needed to perform operations on the data.
Time complexity of a program is measured by the number of basic operations to be performed in order to calculate the result. The
complexity unit is given to each command within the algorithm, so the time complexity of the program is calculated as the total
complexity of all commands in it.
Matrix representation
Variants Space / Room
• N will represent the number of different elements contained in the bill of material;
• O(…) will be the pessimistic (the worst case) number of steps the algorithm takes;
• Table – data in a database describing all relationships between elements (max N2);
• Descendant – material or part needed in the production of other elements;
• Requirements – list of requirements in the production of final products (max N);
• Algorithms will be described by pseudo code to preserve simplicity.
N
N
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It’s all about Data …..... Engineering Data ...... E/E Data ......Variance Algorithms and Variance Design approaches can be very time consuming….
Comparison of Traditional BOM Algorithm and Improved BOM Algorithm
Algorithm Processing Capability Comparison of BOM Material Expand
BOM managing systems Flexible use of algorithms
Tree structure representation Cross-style representation Matrix representation
Depending on the size and type of the BOM, today’s BOM management systems may have to be more agile in terms of which algorithm is to be used to achieve required performance.
Customer sample data:
350+ Variants
⇒ 122.500 Data Records
⇒ above 10 * 104 !!!!!
Source: www.sersc.org/journals/IJHIT/vol7_no3_2014/7
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
StandardCustomized Standard
Modified Standard
Customer Specific Design to OrderEngineering to Order
Custom
Configure to Order
No. of orders
Product is Non-modular Product is ModularProcess and Organization
Impl
emen
t a m
odul
ar a
nd
stru
ctur
al A
rchi
tect
ure
Pro
cess
es, O
rgan
izat
ion
&
I/F In
frast
ruct
ure
• There will be no 100% CTO approach in the future.
• Companies needs to enter into new Market segments or niche markets
• …
150% Design approach Modular Design approach
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It’s all about Data …..... Engineering Data ...... E/E Data ......Decoupling by Modularity ….
Product Leadership
Customer Orientation
Operational Excellence
Operational Excellence
Product Leadership Customer Oriented
Interfaces isolates modules in their strategic circle to optimize each in accordance with its strategic direction
• Reduce Lead-time• Optimize Costs• Maximum Re-Use• Maximum Modularity• Quality focus
• Ensure Leading edge Technology supplier
• Niche Markets• As required
standardization• As required modular• ….
• Maximum customer fit• No or very few
modules• Niche Markets driven• Early Idea and
Innovation Prototyping• …
ModularityComplexity
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It’s all about Data …..... Engineering Data ...... E/E Data ......150% Design versus modular Design …. Strategic Advantage of modular Product development
High performance IT Infrastructure and Controlled Modular Engineering methods enable firms to achieve a number of strategically important advantages:1. Well addressed Complexity Management operations will lead to optimal transparency enabling early analysis how to avoid and reduce complexity = product variety
2. External and Internal balanced increase in product variety can lead to solid revenue increase
3. Structured internal product variety can especially lead to significant complexity cost reductions
4. 2 & 3 applied in a structured and controlled way will eventually lead to increased profitability
Source: www.mechanicaldesign.asmedigitalcollection.asme.org
Engineering: Modularization
IT: Improved BOM Algorithm
Sales: possible higher revenue
Note:1. reduced internal product variety2. achieved complexity cost savings3. new complexity cost curve
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System Design
Circuit Design
2D/3D Layout
It’s all about Data …..... Engineering Data ...... E/E Data ...... AND Transparency
MechanikMCAD
Enterprise PLM / ERPBackbone
MCAD
EngineeringData Management
Mechanical CAD
PLM / ERPIntegration Layer
Software DevelopmentEnvironment
Software ConfigurationManagement
Schematic
Panel
Harness
Mastering ComplexityPLM / ERP
Integration Layer
Innovation is today driven by Electronics (ADAS, Connected Drive, IoT, etc.) and SW (embedded and Apps). Therefore they need to be integrated on an equal level.
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Executive Summary
Achieving the required transparency, balance between external product variety and internal variety allows a excellent planning and processing to achieve maximum time-, effort-, quality-, revenue- and profit optimization
Source: www.tuhh.de
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