Elements of a product configuration model
As many products become commodities, a need arises for differentiating them. Previously, the immediate response of manufacturers to this challenge was to create variants of each product so that customers have more alternatives. This strategy has led to increased forecast challenges and to an increase in inventory cost and unsold products that are now obsolete.
In this situation, the key to success is to carefully analyze the product portfolio and to look for patterns in product features and processes. The goal is to identify generic components that the same equipment can manufacture and that manufacturers can use in all variants.
The Product configuration feature set includes a user interface (UI) that provides a visual overview of the product configuration model structure. It offers a declarative constraint syntax that manufacturers don't need to compile. Therefore, companies that want to support a configuration practice can get started more easily. As the following sections explain, a product designer no longer requires the support of a developer to build a product configuration model, test it, and then release it to the sales organization.
Several approaches are available for building a product configuration model. One option is to follow a sequential flow by creating all reference data, such as product masters, distinct products, and operational resources, and then including them as components, bill of materials (BOM) lines, route operations, and other elements of the product configuration model. Alternatively, you can select a more iterative approach by creating the model and then adding reference data as the need arises.