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1 – 10 of 142Product configurator is a sales and production‐planning tool that helps to transform customer requirements into bills‐of‐materials, lists of features and cost estimations. The…
Abstract
Purpose
Product configurator is a sales and production‐planning tool that helps to transform customer requirements into bills‐of‐materials, lists of features and cost estimations. The purpose of this paper is to introduce a method of how to analyse sales configuration models by using a design structure matrix (DSM) tool. By applying the DSM techniques, the sales configuration managers may sequence the product configuration questions and organize the connection to production.
Design/methodology/approach
First, the paper explains a sales configuration system structure from published academic and non‐academic works. These sources employ both theoretical and practical views on the topic of computer‐based sales expert systems. Second, the paper demonstrates an application of using DSM for configuration modelling.
Findings
The current sales configuration approaches include constraint‐based, rules‐based, and object‐oriented approaches. Product description methods vary, but the general problem remains the same: the configuration process should be designed in such a way that customer selections do not affect the previous selections. From the user point of view, answering the questions should be smooth and fast. In turn this will lead to the growing importance of building more effective product configuration models. DSM offers a systematic way to organise customer interface in sales configuration systems.
Research limitations/implications
This paper analyses how DSM could help in planning product configuration modelling. Comparison of different sequences is presented. The examples used are hypothetical, but illustrate the suitability of DSM analysis. Companies are trying to establish easily configured product models, which are fast, flexible and cost‐effective for adjustments and modifications. Use of DSM may help in the roll‐out of sales configuration projects. DSM may also be used as a quick view to represent the complexity of product configurability. The future needs for configuration tools will be focused towards product model management from the technical limitations of different data storage approaches.
Practical implications
Configurator software creates product variants, which are logical descriptions of physical products. Variants have parameters which describe the customer‐made selections. The parameter selections may have interconnections between the choices. Some selections may affect further selections and some combinations may not be allowed for incompatibility, cost or safety reasons. There are several commercial software packages available for creating product configurations. Product description methods vary, but the general problem remains the same: the configuration process should be designed in such a way that customer selections do not affect the previous selections. Answering the questions should be smooth and fast. Configuration of complex products, for instance, airplanes, may include several sub‐systems and have various loops within the quotation process. The use of DSM may help in the roll‐out of sales configuration projects. DSM may also be used as a quick view to represent the complexity of product configurability.
Originality/value
The paper helps both researchers and practitioners to obtain a clearer view on the development of sales configuration systems and the potential of systematic DSM‐based product model analysis.
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Ahm Shamsuzzoha, Sami Kyllönen and Petri Helo
The purpose of this paper is to introduce a methodological approach to develop customized products which offer true customer value and achieve superior competitive advantage.
Abstract
Purpose
The purpose of this paper is to introduce a methodological approach to develop customized products which offer true customer value and achieve superior competitive advantage.
Design/methodology/approach
An integrated framework is presented where both front‐ and back‐end features of product development activities are illustrated. Detailed explanations of the framework participants are discussed with their specifications and view points that illustrate the value of the framework. This framework communicates between citarasa and do‐it‐yourself‐design configurators at the upstream, and available to promise, agile supply and demand network, advanced planning and scheduling systems in the downstream, in order to visualize the complete production scenarios and to maintain the flow of custom tailored product development.
Findings
It is hoped that the illustrated framework will bridge the gap between manufacturers, and customers in order to produce customer satisfied products that fulfill the business target in terms of earning more revenues.
Research limitations/implications
This research work is based on a theoretical hypothesis. Although the proposed framework is implemented in a truck manufacturing company, it requires application in more industrial organizations in order to generalize its effectiveness, suitability, and consistency in the manufacturing arena.
Originality/value
This paper outlines the configuration principle, along with different tools and methodologies, which support manufacturing firms in the customization of products in both upstream and downstream activities in a profitable way. These tools or methodologies can help product developers to improve their due‐date promising, exploitation of bottlenecks, and the visualization of their capability to produce the customers' specific products.
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Tuomas Korhonen, Erno Selos, Teemu Laine and Petri Suomala
The purpose of this paper is to better understand management accounting automation by exploring the programmability of management accounting work.
Abstract
Purpose
The purpose of this paper is to better understand management accounting automation by exploring the programmability of management accounting work.
Design/methodology/approach
We build upon the literature on digitalization in management accounting and draw upon the pragmatic constructivist methodology to understand how digitalization takes place at the individual actors' level in accounting practice. The paper uses a data set from an interventionist case study of a machinery manufacturer.
Findings
We examine an actual process of automating management accounting tasks. During this development process, surprisingly, calculation tasks remained more fit for humans than machines though, initially, they were thought to be programmable.
Research limitations/implications
According to our findings, practitioners may interpret experts' nonprogrammable work tasks as programmable and seek to automate them. Only identifying the factual possibilities for automating accounting-related work can lead to automation-improved efficiency. Our findings can be increasingly relevant for advanced analytics initiatives and applications within management accounting (e.g. robotic process automation, big data, machine learning and artificial intelligence).
Practical implications
Practitioners need to carefully analyze the entity they wish to automate and understand the factual possibilities of using and maintaining the planned automatic system throughout its life cycle.
Originality/value
The paper shows that when processes are assessed from a distance, the nonprogrammable management accounting tasks and expertise can become misinterpreted as programmable, and the goal of automating them has little chance of success. It also shows possibilities for human accountants to remain relevant in comparison to machines and paves the way for further studies on advanced decision technologies in management accounting.
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Sara Shafiee, Anders Haug, Saeedeh Shafiee Kristensen and Lars Hvam
Product configurators are expert systems that support product customization by defining how predefined entities and their properties may be combined. Developers of configuration…
Abstract
Purpose
Product configurators are expert systems that support product customization by defining how predefined entities and their properties may be combined. Developers of configuration systems act as designers, although they do not often recognize that they are performing as such. Moreover, exploring solution spaces is typically not integral to configuration projects, as this task is typically perceived as mapping existing knowledge to the configurator. This article argues that developing configurators may be understood by distinguishing between the problem and solution spaces using design thinking (DT).
Design/methodology/approach
A multiple-case-study approach with four configuration projects is adopted to study two projects involving DT and compare them to two similar projects not involving DT. Data collection depended on multiple data sources via workshops and semi-structured interviews.
Findings
First, DT methods and concept–knowledge (C-K) theory are integrated into configuration projects. Second, the application of DT during configurator development is presented through workshops and interviews, which demonstrates the benefits of DT in overcoming existing challenges.
Research limitations/implications
The case studies demonstrate the successful implementation of DT in developing configurators. However, a limited number of cases in only one company limits the generalizability of the results.
Practical implications
The framework's individual steps create a structured approach to supporting industrial companies with a toolbox of DT techniques and methods for configuration projects.
Originality/value
The results show that the application of DT to configuration projects can improve user motivation, stakeholder satisfaction and knowledge acquisition.
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Summarizes several strategic briefings, conference presentations and reports on the topic of logistics management. Covers in turn logistics in China and Japan, including a profile…
Abstract
Summarizes several strategic briefings, conference presentations and reports on the topic of logistics management. Covers in turn logistics in China and Japan, including a profile of Braun Electric; methods of improving the supply chain, highlighting new technology, the “bullwhip effect” of distorted information and a case study of Tektronix; logistics in retailing, including direct mail in Japan, home shopping and distribution networks; and applications of the Internet in the logistics field, focusing on “knowledge logistics” (electronic publishing). Concludes with a summary of research conducted by McKinsey which suggests that doing business in a world of plentiful and cheap interactions will require new skills and new ways of thinking and those who anticipate and understand the fundamental nature of the changes will be best placed to exploit the opportunities.
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Enrico Sandrin, Alessio Trentin, Chiara Grosso and Cipriano Forza
The purpose of this paper is to focus on online sales configurators (SCs), also known as mass-customization toolkits, which enable consumers to self-customize their product…
Abstract
Purpose
The purpose of this paper is to focus on online sales configurators (SCs), also known as mass-customization toolkits, which enable consumers to self-customize their product solutions online. The paper aims to provide new insights into which characteristics of an online SC increase the consumer-perceived benefits of possessing a mass-customized product.
Design/methodology/approach
Previous studies on mass customization (MC), sales configuration, and learning psychology are used to develop the research hypotheses, which are tested by analyzing data from 675 configuration experiences from a convenience sample of potential consumers using 31 real online SCs for laptops/notebooks, economy cars, and sport shoes/sneakers.
Findings
The paper finds support for the hypotheses that SCs with higher flexible-navigation, focused-navigation, and easy-comparison capabilities enhance not only the traditionally considered utilitarian benefit (UT), but also the consumer-perceived uniqueness benefit (UN) and self-expressiveness (SE) benefit (SE). Furthermore, consistent with the study’s hypotheses, SCs with higher benefit-cost communication and user-friendly product-space description capabilities are found to improve UT. The hypotheses that these two capabilities enhance UN and SE, however, are not supported. Post-hoc analyses suggest that the examined SCs are generally UT-centered and need improvement of their ability to communicate the UN and the SE a consumer could derive from the purchase of his/her configured product.
Originality/value
While prior research has primarily been concerned with conceptually arguing and empirically showing that uniqueness and self-expressiveness are two additional sources of consumer value in business-to-consumer MC, this is the first empirical study that offers insights into which characteristics online SCs should have in order to draw from these two value sources.
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Jo Bramham, Bart MacCarthy and Jane Guinery
Manufacturers across many sectors increasingly operate in high variety environments. Research evidence suggests that variety has a negative impact on performance. However, the…
Abstract
Purpose
Manufacturers across many sectors increasingly operate in high variety environments. Research evidence suggests that variety has a negative impact on performance. However, the research literature is limited on the enablers that allow variety to be managed effectively and efficiently at the “front‐end” of an organisation and in quotation processes in particular.
Design/methodology/approach
This paper presents case analysis of the quotation processes from manufacturers operating in high‐variety environments. Qualitative process modelling tools have been developed to allow representation of process complexities and informal process elements.
Findings
Findings are presented on generic mechanisms for absorbing and mitigating the impact of variety on quotation processes. A generic quotation process model is presented comprising four key decisions centres: customization request initiation and information gathering on customer needs, classification of requests, resource control, and identification of information for reuse.
Practical implications
The implications of the study for the automation of quotation processes in high variety and mass customization environments are discussed and it is speculated that different decision centres will dominate in different environments.
Originality/value
The generic model developed by this research offers insight into the functioning of the core process elements of the quotation system. Reviewing an organisation's structure and the information systems infrastructure supporting these decision centres should lead to the identification of potential system or reorganisation improvements.
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Lars Hvam, Martin Malis, Benjamin Hansen and Jesper Riis
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…
Abstract
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.
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Mads Bejlegaard, Ioan-Matei Sarivan and Brian Vejrum Waehrens
This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on…
Abstract
Purpose
This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on its position as a sub-supplier. The transformation is motivated and enabled by end-to-end business intelligence related to processes revolving around the product’s design, configuration and engineering. The investigation builds on case-based research following the company’s decision of converting its product portfolio to only one family of products, thus increasing process efficiency whilst at the same time enlarging its market reach by offering individualized and innovative products. By digitally integrating operations related to sales, product development and production preparation, the traditional trade-off between cost-effective solutions with high product variety and low lead-time is significantly reduced.
Design/methodology/approach
A design science research project has been conducted to create knowledge on the effects of integration across the value-adding chain of operations. Several design cycles illustrate how development based on business intelligence and available technological enablers for inter-operation integration influence the traditional approach towards supply chain pipeline selection strategies.
Findings
Relating to digital transformation, the consequences and means of adopting digital business intelligence for integrating several administrative and engineering operations in small-medium enterprises (SME) are studied. The product delivery performance of the SME is improved, thus, having ETO lead-time comparable to manufacturing to order company. The findings show how the adoption of state-of-the-art technological solutions for cross-operation digital integration challenges traditional supply chain, coordination models.
Research limitations/implications
The conclusions are drawn based on a single case. The limitations associated with case-based research call for further work to support generalization. Furthermore, the long-term influence of the effects of increased interoperability on supply chain coordination strategies requires further investigation.
Practical implications
As technological solutions evolve, new opportunities for supply chain management arise, which put into question the traditional understanding that complex supply chain pipeline characteristics should be handled by complexity reducing initiatives, which opens up new competitive opportunities for companies in high-cost countries.
Social implications
Enabling the use of human resources towards expanding the business (rather than running it only) are aligned with the current economic and political situation in high-cost countries like Denmark and potentially releases skilled employees from repetitive and low value-adding work and reengages them in business development.
Originality/value
By embracing flexibility and volatility as an opportunity, this publication exemplifies how to move beyond hedging the supply chain volatility, but systematically enable the supply chain to deal with complexity efficiently.
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Managing the production and operations of a contemporary electronics manufacturing is challenging. Companies need to be proactive for uncertainties of the market in a productive…
Abstract
Managing the production and operations of a contemporary electronics manufacturing is challenging. Companies need to be proactive for uncertainties of the market in a productive way. This paper analyses the electronics manufacturing context and proposes the data system implementations based on context requirements. The general trends in electronics manufacturing are time‐based competition, increasing product variety and new technologies. Cost structure changes are driving productivity. Price erosion is forcing flexible operations and fast inventory turn rates. The uncertainties in electronics manufacturing that need especial management are: volume – the change in demand and its effect on lead‐time of order‐fulfilment; product mix – managing product variety and lot sizing issues and product life cycles – changing products and production technologies. Managing and measuring these dimensions require wide implementation of ERP packages. In some cases, more advance planning tools such as product configurators and advanced planning systems are required.
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