Product SupplyChain Improved

Architecture Design Business Performance

Who am I
Jeroen Vos Study
Jeroen.Vos@asintik.com • Phd. Mechanical Engineering
06-30678709 Delft University of Technology
• Research student
NTN Bearing Corporation, Japan
• Research Student
Carnegie Mellon University, USA
• Guest Researcher
Tampere University of Technology, Finland

Work experience
• Production System Architect
Philips DAP Drachten
Philips DAP, Singapore
• Business architect
Philips DAP Drachten
• Technology & business Lecturer
University of Groningen
• Founder & owner
Asintik

Keywords
Focus on results, analytical, technology & business,
team leader, communication & coaching skills
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions, smart customization
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others did this… What they changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered them…
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions, smart customization
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others did this… What they changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered
delivered them…
them…
 How much…

Our project results at your competitors

• 30% Profit increase
• 20% Toolcost reduction
• 30% development reduction same result
• 60% shorter time-to-market
• ….

Where do you want to

improve?
Theory
1. Fast product development
[Henderson and Clark 1990, Sanchez 1995]

2. Cost reduction in development & production

[Loch, Terwiesch, & Thomke, 2001]

3. Easily create high product variety

[Sanchez en Mohoney 1996, Schilling 2000, Pine 1993]

4. Increase specialisation opportunities

[Langlois 2000, Fine 1998]

5. Product customization opportunities

[Pine, 1993]

6. Improved outsouring opportunities

[O'Grady, 1999]

7. Improved mass customization opportunities

[O'Grady, 1999]
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions, smart customization
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others did this… What they changed…
changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered them…
Product & Supplychain architecture

Investment -20%
IFO +30%
Innovation-to-market 3yr -> ½ - 2yr
Mix-flex +
Innovation-flex +

Supplychain
•late CODP
•Additional customization
centre
•Allocation

Innovation to market
•Split standard versus
diversity functionality
 Machine development

Investment per product -45%

Floorspace per product -75%
Innovation-flex ++
Volume-flex ++
Mix-flex +

• Modular buildup
• Market roadmap focus
• Quantitative function costs analysis
• Technical & business interaction
The customer:
• The EK and SU were key-enablers to
launch two mission critical projects in time
• Two years after start-up the EK platform
has reached the variable cost levels of our
most mature platform
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions, smart customization
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others
others did
did this…
this… What they changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered them…
How: Paradigm shifts

Often encountered… Good for business…

Decrease diversity in portfolio Increase diversity in portfolio

Product standardization Supplychain standardization

Integrated development through the

Engineer: function design
chain

Conflicting interests Departments share same goal:

between departments Business Performance

Focus for whole supplychain: Split supplychain in separate parts for

costs & deliverytime cost focus & delivery time focus
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions, smart customization
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle customer diversity
diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others did this… What they changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered them…
Question

Do you always deliver the exact same product to each

customer?

Why yes / no?

Which one do you prefer of these?

This one? Or one of these?

Diversity will sell more!

(provided it is equal @price, @quality, @availability etc.)
Question

Do you want standardization in

• production processes
• processing order
• Supplier choice
• Used parts

Why yes / no?

Supplychain standardization

Supplychain standardization delivers efficiency!

lowers costs, improves quality, reduces delivery time
Question

Does engineering itself add costs or value?

Why?
 Engineering focus?

Original: Added:
realise technical function Engineer the chain?

Marketing Purchasing

After sales Logistics

Service Manufactu

Assembly

Design
Quality

Distribution

Traditionally engineering focuses on creating the technical function

The rest of the chain however highly determines costs, quality & delivery time
Product architecture adds costs

Product architecture:
building blocks &
interfaces

Smart high payed

professional

Thinking: $$$
Drawing: $$$
 Supplychain – late CODP: low costs & short delivery time

Demand Delivery Supplychain:

SPEC SPEC
• Add diversity late

Product:
• Split ‘diversity’
features from the
rest of your product
codp codp Customer diversity
=> sales value

Hi gh i nventory (costs)
or l ong delivery ti me

FOCUS: FOCUS:
Effi ci ency, costs fa s t delivery
 Approach

GOALS: Quality Costs Delivery time

NFP A l ab e l s(Fran s, En ge ls), C E l abels (i f

US co n tro l s: NFP A taal (Fran s / Enge l s))

Safety map (IF co n tro l s=EU then

T0 STM23\ STM24\ STM35

N oz z les (check tes t req.)

Safe tymap (ja, n e e)) US = stan dard
Extra noz z le adjus tment

Top-down blower kort&

Steam tunnel guarding
SMED product guiding

Sectie aantal
BOM modules

Stoom s ectie labels

Clos ed cable gutter
SMED breedte ins t.

SMED hoogte ins t.

Extra s afety cover

motor-dis connect

Running divers ity

Blower (exhaus t)

Conveyor hoogte
energy s aving
SMED klokjes
•

Central drain
AMEC | loto
Split orders in

Doors witch

CV breedte
Spare kit

By pas s

lang
key
CTO Process

ETO and CTO

1 Looprichting (LR / RL) x x x ?
2 CV breedte (106 / 138) x x
3 controls (EU / U S) x x x x x x x
Enabler

4 # noz z le adjus tments x x x x x

Configurator
5 Spare kit (ja / nee) x ?

Customer •
6
7
Top-down blower (ja / nee)

No more engineering
Doors witch (ja / nee)
x
x
Orders to

questions
8 Motor dis connect (ja / nee) x x
9 Materiaal motor dis connect (plas tic / s tainles s ) x
10
11
Soort uitwerpbak (rotary / bin)
Energy Saving Mode (ja / nee)
x
x
Suppliers and
involved in CTO orders
x x x x

questions
12 SMED (ja / nee)

assembly
13 # producten x x x x
14 Kleur SMED dopjes

Interaction matrix
x x x x
15 Bypas s (ja / nee) x x
16 # producten bypas s

•
x

Orders directly from sales

17 Kleur SMED bypas s dopjes
x x
18 Type goot (open / clos ed) x
19 Safety cover (ja / nee) x x
20 # extra noz z le adjus tment keys x
21
22
23
24
AMEC (ja, nee)
configurator to ERP
Stoom s ectie s tickers (ja / nee)

Central drain (ja, nee)

Steam tunnel guarding (ja, nee)
x
x
x
x
25 Safety map (ja, nee) x x x x x
26 Top-down blower (geen, kort, lang) - komt uit
tes trapport x x x
27 Conveyor hoogte (800-1400) x
28 Production Speed/ Conveyor Speed x

1 2 3 4
Approach

Identify
customer Restructuring Process
CTO Monitor
diversity BOM redesign
 Approach Wind direction approach
GOALS: Quality Costs Delivery time

NFP A l ab e l s(Fran s, En ge ls), C E l abels (i f

US co n tro l s: NFP A taal (Fran s / Enge l s))

Safety map (IF co n tro l s=EU then

T0 STM23\ STM24\ STM35

N oz z les (check tes t req.)

Safe tymap (ja, n e e)) US = stan dard
Extra noz z le adjus tment

Top-down blower kort&

Steam tunnel guarding
SMED product guiding

Sectie aantal
BOM modules

Stoom s ectie labels

Clos ed cable gutter
SMED breedte ins t.

SMED hoogte ins t.

Extra s afety cover

motor-dis connect

Running divers ity

Blower (exhaus t)

Conveyor hoogte
energy s aving
SMED klokjes
•

Central drain
AMEC | loto
Split orders in

Doors witch

CV breedte
Spare kit

By pas s

lang
key
CTO Process

ETO and CTO

1 Looprichting (LR / RL) x x x ?
2 CV breedte (106 / 138) x x
3 controls (EU / U S) x x x x x x x
Enabler

4 # noz z le adjus tments x x x x x

Configurator
5 Spare kit (ja / nee) x ?

Customer •
6
7
Top-down blower (ja / nee)

No more engineering
Doors witch (ja / nee)
x
x
Orders to

questions
8 Motor dis connect (ja / nee) x x
9 Materiaal motor dis connect (plas tic / s tainles s ) x
10
11
Soort uitwerpbak (rotary / bin)
Energy Saving Mode (ja / nee)
x
x
Suppliers and
involved in CTO orders
x x x x

questions
12 SMED (ja / nee)

assembly
13 # producten x x x x
14 Kleur SMED dopjes

Interaction matrix
x x x x
15 Bypas s (ja / nee) x x
16 # producten bypas s

•
x

Orders directly from sales

17 Kleur SMED bypas s dopjes
x x
18 Type goot (open / clos ed) x
19 Safety cover (ja / nee) x x
20 # extra noz z le adjus tment keys x
21
22
23
24
AMEC (ja, nee)
configurator to ERP
Stoom s ectie s tickers (ja / nee)

Central drain (ja, nee)

Steam tunnel guarding (ja, nee)
x
x
x
x
25 Safety map (ja, nee) x x x x x
26 Top-down blower (geen, kort, lang) - komt uit
tes trapport x x x
27 Conveyor hoogte (800-1400) x
28 Production Speed/ Conveyor Speed x

1 2 3 4
Approach

Identify
customer Restructuring Process
CTO Monitor
diversity BOM redesign
 My promise in my abstract…

Keywords: supplychain improvement, concurrent design of supplychain and product architecture, your down
to earth
Yourfirstfirst
actions,
first smart customization
actions…
actions…
Most businesses are about serving their customers well in an efficient manner. The key is in the combination
of the different customer demands and design a combined product architecture and supplychain. This serves
the different customer demands as well as the internal demands.

In this presentation you will learn what product architecture is, whyImportance
it is important of high customer
to handle diversity
high customer
diversity well and how it improves your supplychain performance. Most important lesson: design your
product and supplychain in one go. Do this with a focus on the customer (diversity) demand and your
company’s business performance.

More and more companies are discovering this as a key element in their next step in improvement. Examples
are machine builders or manufacturers of consumer goods. Common key characteristic of these companies is
the high end-diversity they deliver: each customer receives a different machine or product.

Often these companies strive for standardization to handle the diversity. However, the end result of good
architecture projects is: increased diversity for the customer, a more easy and efficient supplychain with
highly improved performance of the business as a whole. These projects use different terminology: mass
customization, configure to order, smart customization, product architecture, modular product buildup and
modularity. This presentation will introduce these different terms.
How others did this… What they changed…
This presentation will introduce both the ‘how’ these companies did this as well as examples of ‘what’ they
changed and ‘how much’ it delivered them.
How much it delivered them…
 Change does not happen overnight… today

I often came home with lots of ideas and inspiration after a seminar like today…
 Change does not happen overnight… today… tomorrow…

Back at the office the daily hassle waited for me…

 It’s time for you to make the first step in change

What is your first action?

 Put in your agenda, no matter how small, but make the first step
 And…. In the agenda for the time-slot, the last point is ‘what is my next step’?
Product SupplyChain Improved
Architecture Design Business Performance