Configuration Management is the intentional design strategy and implementation to make the complex simple around people, process and technology.
There are often significant breakdowns in the configure-price-quote (CPQ) processes to support configurable products.
The biggest breakdown for manufacturers is the practice of creating a unique bill of material for each order configuration.
Is it a hoax or a cover-up? Sometimes it doesn’t matter. The word “hoax” has been used to dismiss factual situations. “Hoax” means “a humorous or malicious deception.” Characterizing something as a hoax can also be a means of covering up a legitimate concern that needs to be addressed. A hoax or cover-up can actually be a legitimate threat to the future of a business.
What executives with configurable products & services want for their businesses, employees, and customers.
-Increased market share
-Delighted customers
-Improved quality
-Improved operating margins
-Differentiation/Competitive advantage
-Lean the business–eliminate waste
-Happy employees
The downside of bundled products and services? What happens when a consumer is limited to buying in bundles? Friction! Friction means the buyer is looking to replace you. Offer A La Carte Customer® business model instead.
If you wanted to start a company that offered highly-configurable products, the worst business paradigm you could select would be engineer-to-order (ETO).
There is conventional thinking for durable competitive advantage during normal economic conditions, but I’ve added 2 action steps for durable competitive advantage during economic crisis, like this Covid-19 economic crisis.
Recurring Operating Challenges That Affect Customer Satisfaction and Profits
Remember: The best process can’t add value if it is subverted. Our CEO instilled in us that our vendors were our partners, not merely suppliers. We were to treat them as employees or family. Our growth taxed our suppliers to keep up with us. We needed them to keep up.
A decade ago, I wrote an article in Fast Company called We Offer It, You Buy It; Take It Or Leave It. Here’s how I kicked off that article: Does the headline of this article represent an attitude that customers are drawn to? It sounds like a customer strategy taken Read more…
The primary interface between Engineering and the rest of the manufacturing enterprise lies in your company’s Engineering Change Order (ECO) process. If the underlying process is sound, your company’s business execution will be sound. Conversely, if the underlying process is weak, the value-add of this critical business process is greatly Read more…