CHOICE NAVIGATION ASSESSMENT FOR MASS CUSTOMIZATION CONFIGURATION - - PowerPoint PPT Presentation

CHOICE NAVIGATION ASSESSMENT FOR MASS CUSTOMIZATION

CONFIGURATION WORKSHOP VIENNA 2013

BY/ KJELD NIELSEN

• 1. Intro
• 2. Choice Navigation and Configuration
• 3. Metrics and KPI
• 4. Conclusions and further research

Agenda

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 2 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Intro

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 3 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Research project McMATIA Mass Customization Measurement and Assessment Tool for Industrial Application

Intro

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 4 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

[Salvador et al., 2009]

Intro

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 5 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Robust Process Design Solution Space Development Choice Navigation

Key Peformance Indicators

• Reliable
• Measurable
• Assessable
• Comparable
• Computeable
• Easy data access

Should express business strategy and business process one way or another In this case specific the Mass Customization business strategy and process

Intro

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 6 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

This work are based on: The capability choice navigation defined in Cracking the Code of Mass Customization [Salvador et al., 2009] as “Support customers in identifying their own solutions w hile minimizing complexity and the burden of choice”. Hence this capability is related primarily to the capabilities of the configuration system, and its ability to configure a variety of products. The Choice Navigation capability are based on three approaches; Assortment Matching, Fast -cycle, trial-and-error learning and Embedded configuration. However these support the development of choice navigation rather than the assessment of choice navigation capabilities.

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 7 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Customer support Business support

Choice navigation vs. Product configuration

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 8 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Product Configuration

Solution Space (SS) Customer Demanded Variety (CDV) SS CDV SS ∩ CDV

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 9 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

• Maximize SSCDV potential numbers of variant
• Minimize SS\CDV variant not demanded by costumers

Describing the numbers, variants or elements involved in SS would be extreme astronomical numbers, ex Mini Cooper Variant of Coopers (SS) 20digit Sold units (SS∩CDV) 5mill Makes CDV a tiny fraction of SS Describing the numbers of customer demands even more difficult or practically impossible express SS/CDV

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 0 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Solution Space (SS) Customer Demanded Variety (CDV) SS CDV SS ∩ CDV

More feasible way to express SS we thus propose SS express as customizable attributes (10 colors + 2 sizes = 12) CDV still impossible Knowledge about SSCDV could do it, but this express customers demand within the SS and not if customer buy, buying has to do weather the customer actually can configure the product fulfilling his needs So a third set is introduced (next)

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 1 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Solution Space (SS) Customer Demanded Variety (CDV) Customer Configuration (CC) E A F G D B C

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 2 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

SSCDVCC (A) would be optimal All other areas spells problems

• F(D) the configurator can express variants not in SS and F matching CDV
• C customer may leave the configuration process fast or worse giving the

company bad reputation

• E good match between SS and CDV, but impossible to configure = no sales

This used as evaluation and development criteria Delimitation and other remarks

• Bias from B2B or B2C
• Time and efforts cross products and business setup (ex. Customer

enjoying or educating during the configurations process)

Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 3 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Solution Space (SS) Customer Demanded Variety (CDV) Customer Configuration (CC) E A F G D B C

Methods used

• Literature study
• Development of new metrics

The main literature

• 1. Blecker, T., et al. , 2003 – Key Metrics
• 2. Sterne, J, 2003 – Web metrics
• 3. Piller, F., 2002 – Logistiche Kennzahlen
• 4. Walcher & Piller, 2012 - MC 500
• Ex. of literature we have used for other metrics in this project:
• K o r e n , Y. , e t a l . , 1 9 9 9 , R e c o n f i g u r a b l e m a n u f a c t u r i n g s ys t e m s . C I R P A n n a l s -

M a n u f a c t u r i n g Te c h n o l o g y, 4 8 ( 2 ) , 5 2 7 - 5 4 0 .

• N a s r, N . , & T h u r s t o n , M. , 2 0 0 6 , R e m a n u f a c t u r i n g : A k e y e n a b l e r t o

s u s t a i n a b l e p r o d u c t s ys t e m s . R o c h e s t e r I n s t i t u t e o f Te c h n o l o g y,

Metrics for Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 4 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Identified in literature : Configuration Abortion rate 1 (high CAE) Customers Return Rate 3 (high RTRG) Customers Churn Rate 2 (high CRG) Customers Repurchase Rate 3 (low RRG) Customers Complaints Rate 1 (high CORG) Developed for the project: Seller Order Cancellation rate (high SOCRF) Seller Order change rate after purchase (high SOCRAPF) Customer Order Cancellation rate (high COCRF) Customer Order change rate after purchase (high COCRAPF) Configuration sales rate metric(CSR indicates A)

Metrics for Choice Navigation

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 5 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Solution Space (SS) Customer Demanded Variety (CDV) Customer Configuration (CC) E A F G D B C

Data availability – based on data found in ERP systems Choice Navigation is one out of three capabilities – strong relationships requires more actions across capabilities (ex Abortion Rate(CA), influence from both Solution Space Development and Choice Navigation) Benchmarking and comparison should be carefully (ex. Car vs. Müsli complain and repurchase rate)

Understanding the results

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 6 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Further development

• Verification of causal relations
• Modeling of the relationships between capabilities
• Verification of relations between performance and specific methods

and tools

• Making the metrics industrial applicable

Next phase Test and evaluation of metrics in industry setup.

Further

C H O I C E N A V I G A T I O N A S S E S S M E N T F O R M A S S C U S T O M I Z A T I O N – P A G E 1 7 - 3 0 0 8 1 3 M A S S C U S T O M I Z A T I O N G R O U P D E P A R T M E N T O F M E C H A N I C A L A N D M A N U F A C T U R I N G E N G I N E E R I N G A A L B O R G U N I V E R S I T E T

Question

Doing this work we have been focusing on our research questions and during that process we may or could have lost orientation, we would appreciate any kind of comments which could assist us in better understanding and keeping us on track Qs Are there metrics or KPIs we have missed we should or could include in our work? Would it be possible to find some systems capable to measure any of the proposed metrics?