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Variety optimized module set: building a modular product family

The challenge: externally versatile and internally lean

Are your products as versatile as your customer requests? That’s good. For your customers. This external variety, however, is frequently offset by a high degree of technical variety. This variety must be handled by your organization and by other participants in the product life cycle, unnecessarily tying up capacities in the process. This situation creates the desire for a variety optimized module set.

In order to reduce complexity, achieve more flexibility and still be able to fulfil all relevant customer requests, the interdependencies between external variety and internal technical solutions must be minimized on component level. That is the only way to uncover the potential for simplification.

Process for a variety optimized module set: Distinction between external and internal variety

At the start of a variety optimized module set, we will create a structured overview together with you in order to analyze the portfolio’s product variety which is being offered externally.

We will subsequently analyze the internal technical variety and visualize the relations between internal and external variety. We will help you determine which factors influence the internal variety the most.

Based on those findings, we will jointly develop a concept in order to uncouple such dependencies and enable the development of a modular product family. In doing so, we will note which adjustments truly make sense in regards to sales numbers, revenue and margin, and which product variants can be replaced or canceled. From the very beginning, we will be sure to take into account future uncertainties and requirements, such as new technologies, and thereby create a modular product architecture which is stable enough to handle future changes.

The next process step includes the visualization and evaluation of the new product family concept as well as support in its implementation.

At a glance: The five steps of a variety optimized module set

At MB Collaborations, we divide the process for the development of a variety optimized module set into the following five steps:

Step 1: Analysis of product variety being offered externally

Step 2: Analysis of internal technical variety

Step 3: Analysis and visualization of dependencies between internal and external variety.

Step 4: Development of concept for uncoupling internal and external variety and creation of a modular product family

Step 5: Visualization, evaluation and implementation of concept

Results: a variety optimized module set

The result of a variety optimized module set is a product configuration that does justice to its versatility and makes it possible to fulfill all relevant customer requests with a minimum of internal component variety.

Specifically, this sustainable optimization of variants means:

  1. The number of components is reduced by 50% on average.
  2. The number of variant components is reduced by 30% on average.
  3. The number of standard components is increased by up to 30%.

Would you like to find out more about a variety optimized module set? Contact us or drop us a line.