With Intelligent Solutions for Discreet Manufacturing
The competitive pressure for discreet manufacturing is rising. Thus, you have to become more efficient and distance yourself from the market with individual efforts. The tendency towards on-demand production to reduce storage of finished products, has been increasing for many years. Especially in the multi-variant product groups, it is no longer cost effective to store finished products, but rather, meet the demand to produce directly upon customer request. Configure To Order (CTO) is a keyword that is required by variant configuration.
Configure Price Quote (CPQ) is the progression of CTO and tops off the solution offering. A modern ERP solution connected to an intelligent variant configuration creates the free spaces you will need to react to constantly changing market conditions. You will shorten your offer periods and be able to better fulfill your customers’ rising expectations. Paired with a very detailed calculation, an offer is created which transparently depicts the expected costs.
How We Improve Variant Configuration
Our intention is to perform the pre-calculation for tender preparation as accurately as possible to the expected true costs. CPQ is in our DNA.
We understand the standardly delivered LO-VC offered by SAP, and have been immersed in it since the last millennium. This was optimized and augmented by us. Due to the number of features that occur in today’s productions, we saw ourselves best prepared to create our own structures for variant configuration, particularly for order and tender planning. We manage to work without SAP standard modifications, but constantly ensure that all necessary standard objects are always updated, in order to prevent the generation information jams in the SD. To enhance the performance of SAP standard VC, we provided the existing objects with a user-friendly, dynamic input mask.
Our software solution VCPowerPack helps to utilize an efficient controlling of prices in product areas with small margins. Unavoidable scrap quantities in the manufacturing processes are taken into account in all machine running performances. This creates a complex set of rules, which we pre-defined to be industry-specific and provide for a rapidly sped up implementation process.
We can advise our customers strategically with the development of their product variants – for process and system. Through the development of a structure we create together with the client, we impart the needed knowledge, so that the customer manage future maintenance on their own.
VCPowerPack enables our employees to work more efficiently
One of the big advantages of us using the VCPowerPack at Menasha Corporation is it allowed us to deploy a very user-friendly interface within the software that we laid on top of the SAP variant configuration functionality. So, what that did it made it easier for our end-users to do their job.
It actually allowed them to process their work – things as far as estimating their quotes or sales order – to the business in faster process which really reduced our internal time to get our jobs done within the corporation. We found our relationship with AICOMP was very successful in that. We are currently supporting applications today without a lot of external consulting because of the way it was delivered within the AICOMP structure.
Advantages of an Intelligent Software Solution for Variant Configuration
Configure Price Quote. Your client has individual requirements that are configured and calculated in your system, which build the basis for determining the selling price. This, all within an offer that you hand directly to your customer.
Our understanding of variant configuration
If you manage various products in your portfolio that are similar to each other or that the customer can create on his own up to a certain degree, we refer to variant configuration. "Variant," because a base product is defined and then adapted to the customer's needs.
A simple example would be a pen in the standard color black, which has the possibility to be ordered in different colors. The customer orders the blue variant of the standard pen and the variant gets configured.
Now you could say produce article 1 "Pen in black," or article 2 "Pen in blue," in the respective quantity. This is surely feasible if you have a manageable quantity of different articles, whose parts list you can keep up-to-date.
However, what if you have many articles in your portfolio or a special characteristic, that is only introduced to the customer at the time of the inquiry? Wouldn't it be better to define a core product once, one that has a certain range of functions or characteristics, which can then take on tender preparation on basis of the customer requirements?
Such an approach spares the need for a high level of master data and their maintenance.