Example of Complex Configurable Item: Cyclone Air Filter

1. Configuration Examples& Mass Customizationby Christian BentzenSales & Project Director | SolutionSpace Example of ComplexConfigurable Item: Cyclone Air Filter Different Configuration for different purposes, same model Configuration Complexity Configure to Order (CTO) & Configure, Price & Quote (CPQ) Multiple Channels & Geographies Objectives of Configuration Management

2. Cyclone Air Filter Motor Blower Outlet Duct Blower Cyclone Outlet Outer Cylinder Inlet Muffler Filters Cone Flex Hose Dust Bin Clean Air Out

3. Cyclone Air Filter Motor Blower Outlet Duct Blower Cyclone Outlet Outer Cylinder Inlet Muffler Filters Cone Flex Hose Dust Bin Clean Air Out

4. ConfugurableParameters Blower Capacity Motor Size Diameter Outlet Length Material Motor Blower Outlet Duct Diameter Bend Degree Material Muffler Noise Reduction Material Duct Blower Inlet Air Flow Diameter Length Material Cyclone Outlet Outer Cylinder Inlet Overall Total Capacity Mass Balance Energy Balance Noise Level Mounting Muffler Cyclone Air Flow Inner Diameter Outer Diameter Height Material Filters Cone Flex Hoze Diameter Length Material Filters Air Flow Diameter Length Filtration Capability Cleaning Method Flex Hose Dust Bin Diameter Height Material Capacity How to Empty Dust Bin Clean Air Out

5. ChamberStructure Sales Configuration Type of Air Degree of Pollution Air Volume Industry Requirements . . . . leads to: Height Diameter Material Surface Production Configuration Upper Mounting Ring - Diameter, # Holes Four Upper Cone Parts - Hight, Width, Material, Surface - Bending work, Welding time Four Lower Cone Parts - Hight, Width, Material, Surface - Bending work, Welding time Two Assemply Rings - Diameter, # Holes - Mounting time Outlet Tube - Hight, Diameter, Mounting Mounting, Grinding, Finishing Packaging, Transportation . . . Procurement Configuration Material & Surface Squaremeters Time to Cut & Bend Meters of Welding Grinding and Finishing Packaging, Transportation - All according to the frame agreements with the workshops

6. Configuration Complexity Different Views on the same Components • Sales Configuration • Business Oriented, Customer Requirements & Benefits • Easy to use for Sales, Web Portal, B2B, B2C • Configure, Price & Quote (CPQ) • Product Configuration • More Detailed, Individual Components • Engineering, Construction, CAD Drawings • Input to Production Planning, Project Management • Procurement Configuration • Next Generation Approach • To be built into the Supplier Agreements • Lean, Just-in-time, take more control of the Value Chain

7. Facts from Gulf Extrusions: 60,000 tons of extruded aluminium profiles per year 13,000 different profile designs 10,000 price enquiries per month Fluctuating raw material prices, based on weight Increasing cost of finishing, heavy investments Low Margins in a volatile market

8. The Most Advanced CPQ System - Configure to Order 13,000 Profile Designs Alloy, Length, Quantity Anodizing, Dying, Sealing Powder Coating, Curing Polishing, Packaging Configure Price Quote All necessary Production Details -> ERP 10,000 Enquiries per Month 6 Extrusion Presses Fully Automated Factory Total Cost Control of all Processes and Machines Increasing Production Cost Master Data Management Detailed Cost Analysis Product Modelling Advanced Configuration Dynamic Production Planning

9. Sales Configuration across multiple sales channels and geographies The Challenge • Multiple product lines from different parts of the organization • Difficulty to fulfil the intention of One Point of Contact for all products & services • Customers often ask different parts of your organization and get different answers • Desire to improve conformity across all sales channels on a global scale • Increasing demand for flexibility from the customers • Pricing dependent on complex rules and agreements, often off-line • Problems to follow all changes in products and services and their prices • Too long time to introduce new products or changes • Sales often promote outdated or impossible to produce products, leading to low margins, rework or high warranty cost • Low Cross-Sales and Up-Sales support in existing systems • High time and resource consumption to prepare complex quotations • Complex approval processes to ensure correctness and proper margins • . . . .

10. Why Configuration ? • Where Configuration fits in: • Product Design • Engineering • Sourcing • Manufacturing • Stockkeeping • Marketing • Sales • Documentation • Service • Spare Parts If youmanufacture or sellcomplexproduct and services, youshouldconsiderintroducing Configuration Management ifyouwant to achieve the followingbenefits: • Lowercost of Flexibility • ImprovedCustomization • Faster Time-to-Market • BetterCost of Sales • Shorter Sales Cycles • Higher Customer Satisfaction • Optimized Product Quality • Structured Master Data Management • Sharing of Best Practices • More efficient Change Management • Visibility of Mistakes

11. Objectives of Configuration Management To Design products thatcanmeetcustomerdemand the most optimal way To Engineer products and manufacturingmethods to satisfymasscustomization To Source required components with maximum re-usability and bestpossibleprice To Manufacturecustomized products at massproductionefficiency and cost To improveQualityand Change Management To keep the lowestpossibleStock to minimizetied-up capital To make sure thatyour products areMarketedaccording to localrequirements To lowerCost of Sales by optimizing Channels to Market To minimize the cost of and maximizeflexibility of Documentation To ensure optimal Service in order to improve Customer Satisfaction To optimizeavailability of Spare Parts at lowestpossiblecost

12. Disciplines of Configuration • Modeling Products • To ensuremasscustomizationpossibilities • Testing Models • It’s far cheaper to test a model than a product • Implementing Models in Manufacturing • Getting the most out of the configurationtechnology • Using Models in Marketing and Sales • Meeting Market Demand • Product Catalogues • Onlysellwhatcanbeproduced • Up- and Cross selling • Building efficient Sales Channels • Indirect sales and web shops • Self Service Portals • Same model for all