| 2006 - May 17 |
Getting a Grip on Configurators - Comparing Configurators: Part I: |
| Friedman Associates - by Mark Lieberman, Chief Operating Officer & Bill Leete, Director of Pre-Sales Support |
This two-part article provides the first requirements checklist for
configurator- based MRP II software systems and serves as a guide for
investigating the capabilities of this comparatively new software
category. While not every manufacturer needs every capability, they should
be aware of the wide range of functionality that does exist. The article
also details differences between the two major categories of configurators
-- add-on and integrated -- and how each affects the major functional
areas of a company.
Part I defines the different types of configurator systems, compare basic functions, and describe how they enhance engineering and production control operations.
Part II focuses on configurator functions in sales & marketing and financial areas, and provide a business analysis for selecting a configurator system.
The conventions of manufacturing have changed. In today's customer-driven marketplace, to- order manufacturing -- whether assemble, make, configure or engineer-to-order -- now stands beside the traditional categories of repetitive, process and discrete as a fourth, distinct manufacturing environment.
Many once-standard industries -- such as doors, windows, furniture and recreational vehicles -- are moving toward to-order manufacturing to meet the consumer's growing need for individualized products at mass-produced prices.
In response to this change, many manufacturing software vendors on a variety of platforms have introduced software packages aimed at to-order manufacturing. An essential element in these packages is a configurator -- a computer program that defines the characteristics of a product and uses this definition to determine if, when and how to produce it.
In the last few years, many vendors have jumped on the bandwagon and added configurators to their MRP systems. But all configurators are not created equal. Some are fully integrated and others are add-on modules. Some are in early developmental stages, while others have been tested and enhanced over a number of years. To know which configurator is right for your company, you should examine the range of configurator functions, identify which are essential to your business, and then narrow your search to software packages that meet those criteria.
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| Defining Configurators: |
| The level of integration and types of interfaces in place are a critical link to how well a configurator system will work in your business environment. There is often a distinction drawn between 'add-on' configurators and 'integrated' configurators, but in reality there can also be major differences within each category.
The add-on configurator is typically separate from the production and inventory control system. Because of this separation, the add-on configurator must maintain a redundant database of information required to process an order, such as part and customer master data. Integrated systems, on the other hand, can be pictured in either of two ways: it can be fully integrated, using the same data files as the rest of the production and inventory control system, or it can coexist with the production and inventory control system, transferring data bidirectionally between the two systems. Any time data is maintained in more than one location synchronization problems will occur, and the user must make certain that each system maintains the same version of common data.
Data redundancy and information availability can become even more critical as we move deeper into the configuration process. Many customer service functions rely on the ability to access production and inventory information while an order is being taken. In order for a customer service rep to provide an accurate promise date, for example, they may need visibility to current shipping schedules, inventory status and capacity availability. Likewise, when a customer calls to change or check the status of an order, the rep needs access to order and production status information. All of this information is typically maintained within the host business system, and in many businesses it may be essential for the configurator system to have immediate access to it as well.
Most add-on configurators will support the entry of customer orders, along with the configuration of production bills of material and routings. This order and production information is then transferred in a one-way flow to the host business system. The transfer of data is typically done in a batch mode, with customer requirements only being visible within the host system upon completion of the batch transfer. The batch interface may also generate replenishment orders against the customer requirements, or a batch MRP run may need to be executed to complete this step. An integrated configurator supports the same type of functions as the add-on system, but has the capability of transferring order and production data in real-time as orders are being entered. This provides visibility of customer requirements and the generation of replenishment orders within the host system as soon as the order is booked.
Another distinction between most add-on configurators, and some integrated configurators, is a reliance on end item part numbers within the production and inventory modules of the system. This is often a limitation of the production system in use and not always just a function of the configurator system itself. Many production systems have no way of entering or tracking a temporary, intelligent item number for use in the order processing, manufacturing and shipping of a product. Every sales order line item that is transferred into the host business system from the configurator must have a unique part number, with a unique bill of material and routing associated with it.
Some of the benefits associated with the implementation of a configurator are in reducing the proliferation of engineering data (end item part numbers, bills of material, and routings), providing structured history files to feed sales analysis programs, and being able to take advantage of configured end item inventory. A continued reliance on discrete part numbers within a configuration system can often limit the ability for a company to achieve these benefits.
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| Basic Configurator Functions: |
| The basic functions of a configurator should allow a manufacturer to create and produce a high volume of customized products efficiently, with consistent quality and within competitive cycle times. In executing these basic operations, add-on and integrated configurators appear quite similar, although there can be a wide range of performance levels in each category.
| Comparison of Basic Configurator Functions |
| Function |
Benefits |
Add-On Configurator |
Integrated Configurator |
| User-defined variables |
Independence from programming |
Available |
Available |
| Discrete, continuous & text variable |
Ability to describe all possible products, components & options |
Available |
Available |
| Configuration code creation |
Permits inventory tracking, retains history, allows sales & financial analysis |
Available, if interfaced to production system |
Available |
| Rule creation |
Simplicity, ease of use |
Available |
Available |
| Vocabulary |
Assess all database elemants |
Not available |
Available |
| Processing speed |
Makes efficient use of system resources |
Available |
Available |
| Multi-platform capability |
Can use on different platforms, in local or remote locations |
Available |
Available |
User-Defined Variables
The most basic function of a configurator is the ability to ask questions about the product being ordered and then validate the answers to ensure consistency, buildability and profitability. The questions may be as simple as "What color?" or may be a complicated series of queries. For example, the answer to "Gas or electric motor?" may prompt subsequent questions on variables such as "Cord length" and "Type of insulation." Or it may eliminate the need for these questions. In other words, questions can encompass a simple, independent variable or a complex set of dependent variables. A configurator should allow users to construct these questions without complicated programming. Relying on programmers, who may have little product knowledge, to maintain and update the configuration variables can cause delays and inaccuracies that defeat the very purpose of the configurator.
For example, one West Coast manufacturer, producing more than 50,000 styles of plastic connectors in several dozen basic types created a custom configurator to define their product line. However, it required a program with over 100 pages of computer code. When new products were developed, an engineer had to meet with the data processing department, describe the product variations in detail, and have a programmer make changes to the already overly complex program.
Discrete, Continuous & Text Variables
In a configuration system, a variable may take several forms, and the configurator you select should support the types of variables needed in your manufacturing process.
A discrete variable is one that has a finite list of values. The list may be short, such as "Gas" or "Electric" motor types, or it can be long, as with a Midwestern drapery manufacturer who offers over 700 colors of drapery fabric. In this case, the configurator should provide a rapid way to search through the variables. If the configurator had to validate the answer to "What Color?" by searching all 700 choices alphabetically, order entry would grind to a halt (unless alabaster were a very popular color and yellow an infrequent choice).
A continuous variable is one whose values cannot be listed. Usually, continuous variables are numeric. With a cable manufacturer, for example, customers can order cable length in any decimal value between one and 100 feet. A configurator that did not support continuous variables would fail here. The third type of variable is text, whether a word, phrase, name or statement. A manufacturer of custom pens, for example, would need to enter the company name to imprint on the barrel of pen.
Configuration Code Creation
A configuration code is a alpha/numeric identifier of the variables selected for a particular product, and it should be permanently stored and retrievable. While a configurator can function without producing a code, many benefits to be discussed later -- such as sales analysis and inventory tracking -- would be impossible.
Rule Creation
The fundamental characteristic of a configurator is the ability to let a user ask questions relating to products and options, and then translate the associated responses into accurate prices, bills of materials and routings. This translation is done through the use of a configuration rule base. It is possible -- even common -- for a particular product definition to contain thousands of rules. To simplify the process, a configurator should provide fast, concise methods for creating rules.
There are three primary rule development techniques: special purpose, Boolean, and matrix.
Special purpose rules can be found in configurators designed for a particular industry and use terms that are specific to that business environment -- but too limited for other industries. Such configurators exist for the window and door industry, for example.
Boolean techniques are the most general way to express rules. Using traditional boolean operators such as "And . . . Or" and "If . . . Then . . . Else," rule construction is relatively easy, although somewhat tedious for complex products.
A matrix technique provides concise expressions, but the conditions in the matrix table cannot be too complex. Matrix expressions are especially convenient for dimensional manufactures where rules often take the form of "a measurement between X and Y."
Since rules can be so voluminous, configurators should minimize the efforts of rule creation through reuse and copy functions. Reuse allows you to create one rule that can be shared by several products. Copying allows you duplicate an existing rule and then edit it to fit another product.
Vocabulary
A configurator should be able to access any information in the corporate database (customer master or product master data, for example) to help construct rules, define products, generate pricing or plan production schedules. A manufacturer may use a configurator to prevent some of its customers from ordering certain types of windows. While this could have been accomplished elsewhere in their system, having the configurator check customer type during order entry eliminates any delays or confusion for the customers.
Processing Speed
All configurators are more system resource intensive on front-end order entry processing than a part number based system. Due to this fact, a configurator needs to be analyzed from a technical viewpoint as to how efficiently it processes rules. Some of the questions to ask include: Is rule processing executed after each option question? Can rules be grouped and nested to reduce the number of rules executed? Are all rule types executed during order entry? Add-on configurators may run on a different hardware platform than the host business system, which can be an advantage in offloading system resources. But this benefit may be overshadowed by the time and resources required to execute the necessary data transfers between the systems.
Multi-Platform Capability
A multi-platform configurator can execute the same rules on both large and small computers with sufficient processing speed on both to perform the required validation in an acceptable time period. For example, a Midwestern calendar manufacturer plans to run their configurator on a midrange computer for orders taken at the headquarters and on personal computers for remote orders taken by their nationwide distributors. By running the same system on both platforms, the manufacturer ensures that all orders are accurate and buildable.
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| Engineering & Production Functions: |
| Both engineering and production control are major beneficiaries of configurators, which can help automate replenishment, simplify creation of BOMs and routings, streamline multi-plant processing and improve shop scheduling.
| Comparison of Engineering & Production Function |
| Function |
Benefits |
Add-On Configurator |
Integrated Configurator |
| Generation of replenishment orders |
Handle single & multi-level configurations, create both work orders & purchase orders |
Not available |
Available |
| Creating BOMs & routings |
Dynamic creation improves accuracy, speed processing |
Available |
Available |
| Advanced function rules |
Ability to handle calculations, trigonometry functions, matrics |
Available |
Available |
| Multi-plant processing |
Vary manufacturing methods by facility |
Not available |
Available |
| Generation of instructions |
Provides uniformity of assembly |
Available |
Available |
| Shop scheduling |
Create & revise schedule based on configuration |
Not available |
Available |
| Stock use up |
Prevent build up of returns, allows build-aheads to speed delivery |
Not available |
Available |
| Interface to MES & MRP |
Improves factory floor control & performance measurments |
Not available |
Available |
| Engineering change control |
Tracks engineering, BOM, routing & product changes |
Available but limited |
Available |
| CAD |
Generatee drawings for shop floor & customer use passes configuerd BOM to/from CAD system |
Available with interface |
Available |
Generation of Replenishment Orders
Like bills of material, configurators can provide either single or multi level processing. A multi- level configurator can create configured lower-level requirements for subassemblies or components that are part of a finished configured product. For example, several independently assembled windows may go into a final window assembly.
Another consideration is that these lower level subassemblies may be purchased or manufactured items. Our window manufacturer may not have the equipment necessary to temper their own glass, so tempered glass panels must be purchased to size from a supplier and pegged back to customer orders. A configured purchase order is needed to complete this type of transaction. Add-on configurators are generally unable to handle the creation and replenishment of configured purchase items, while an integrated system can easily generate both.
Creating BOMs & Routings
Both add-on and integrated configurators have the ability to create production BOMs and routings in a real-time environment. An important difference, however, is that an integrated configurator generates the records directly into the host system, where an add-on product will require an extra step to transfer the data across. The functionality associated with the dynamic generation of routings can vary across configuration products: some may not support routing creation at all, while others allow activation of the correct routing operations as well as dynamically calculating production run and setup times.
Advanced Function Rules
Customer choices may not be the only input manufacturing needs. Often calculations must be made based on the selected variables before the production process begins. For example, automated cutting equipment used by window manufacturers requires not only the dimension of the window, which the customer provides, but also certain angles between edges of the window. A configurator should be able to perform these calculations and transmit the results for subsequent processing.
Depending on the complexity of the products being configured, calculations can range from simple arithmetic expressions to complex trigonometric functions. For a company who manufactures triangular or elliptical shaped products to accurately calculate cut sizes and associated cut angles, functions such as exponentials, square roots, tangents, sines, and cosines must be supported.
Multi-Plant Processing
For multi-plant manufacturers, a configurator must be able to assign an order to one of several plants, and may have to create a different bill or routing depending on the selected plant. It may also be required to select alternate manufacturing techniques based on internal plant variables or machine availability. In some cases, a configurator may need to assign one plant to make items that will be used at other plants in the production of the final configured product. Here again integrated configurators, with access to plant and production data, have a major advantage over add-on configurators.
Generation of Assembly Instructions
When it comes to product assembly, many to-order manufacturers rely on worker knowledge rather than formal instructions -- even though the variety of items flowing past a particular worker or cell is infinitely variable. This results in a loss of uniformity -- identical products produced at different times may not be truly identical. Configurators that have the ability to produce printed instructions or drawings to illustrate how to assemble a product can reduce assembly time and production errors.
Shop Scheduling
Whenever production facilities are flexible enough to make all products or whenever capacity is large compared to required output, shop scheduling is not a problem. However, few to-order manufacturers are so lucky. Usually, there is some sort of scheduling required -- often based on variables in the configuration code such as color, finish or size. For example, a millwork company prefers to sequence its cuts from narrow to wide to minimize saw movement and setup time. Having access to size data from the configuration code is essential to scheduling their operations.
An add-on configurator cannot perform this task because it ignores what happens inside the factory and does not tally the load created by other orders. If the underlying production and inventory control system addressed the problem, there would be no serious deficiency. But the underlying system probably cannot read the configuration code. The result of this separation is a failure to reap the benefits of computerized shop scheduling. To illustrate these benefits, one window manufacturer used his integrated configurator to schedule his cutting, finishing, and assembly departments and decreased production lead time by 20%.
Stock Use Up
Theoretically, a to-order manufacturer should not have finished stock, because each end item is created only after a customer order is in hand. But, in reality, returned goods, customer accommodations, and production errors result in inventory for almost every manufacturer. Another possible inventory source is build aheads: a subassembly or finished product produced in anticipation of a customer order, usually to tighten lead times.
An add-on configurator assumes all orders are started from scratch, ignoring existing inventory. The result may be unnecessarily producing an identical item. An integrated configuration system can check existing inventory first and avoid production if the desired item is already in stock.
A manufacturer of commercial ovens uses build-ahead oven subassemblies to shorten perceived order cycle time. After an order is received, they need only to add options to the preassembled ovens. Starting work before order receipt is a significant market advantage for them, but doing so required an integrated configurator.
Interface to MES & MRP
Product configuration is not of much value if it does not lead to production. Invariably that means an interface to MRP or -- more recently -- MES (Manufacturing Execution System). An add-on configurator does not provide an interface to MRP or MES, and can result in conflicts between the front office and the factory floor. By definition, an integrated configurator usually comes already bound to the planning and execution systems needed to produce products.
The interface to an MRP/MES system can be viewed as an hourglass. Activity above the neck is handled by the configurator, while the activity below the neck is handled by the planning systems. Actual demand for component items is generated from the configurator through production BOMs and replenishments are based on traditional MRP netting and order policies.
Engineering Change Control
Many part number based manufacturing systems include extensive engineering change functionality to track engineering change requests, BOM and routing changes and product revision levels. As configuration rules replace traditional BOMs and routings, the same level of engineering change control is required. An integrated configurator is able to utilize and incorporate the engineering change functionality of the host business system, where an add-on configurator will be limited in this area.
CAD Interface
A CAD interface allows manufacturers to pass configured bills of material to and from a CAD system, helping to automate the engineering process and eliminating errors in manual translation. With a CAD interface, they can produce engineering drawings for internal shop floor use or for external use with customers based on the elements (dimensions, materials, etc.) in the configuration code. Conversely, they can also generate configurations and BOMs based on the specifications in an engineering drawing.
Finding The Right Configurator
Finding the "right" configurator requires analyzing your entire business operation and selecting a system that most closely matches your total needs. Although we have so far focused primarily on basic production functions, the role of the configurator can and should extend into marketing and financial operations. To create a truly customer-driven process, to-order manufacturers must tie together all areas involved in delivering customized products to the consumer.
Part II of this article will complete our requirements checklist by identifying how configurators improve these other functional areas of the to-order company. |
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