Mastering product complexity (PDF, 3316 KB) - Roland Berger

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40 B.4 PRODUCT VALUE MANAGEMENT FOR A LEADING CONSUMER GOODS MANUFACTURER A four-step approach was used to integrate customer and company perspectives – Customer view as starting point and end point Approach Customer view A Which features do customers prefer In which order of priority At what cost > Feature check > Focus groups > … D What alternatives are valued by customers and maximize profitability > Sales volume testing > Price positioning > … > We started by analyzing customer preferences > We then identified cost drivers > In a product workshop, we defined alternative solutions to reduce product costs and increase performance Company view B What drives cost and how can we influence it early on > Value-based featuring > Cost driver analysis > … C What alternatives can optimize product cost/ performance > Product teardown > Product convention > … > Lastly, the solution was evaluated and optimized from the customer's perspective Customer/external view Company/internal view Sample methods
41 B.4 PRODUCT VALUE MANAGEMENT FOR A LEADING CONSUMER GOODS MANUFACTURER The company applied a broad range of tools to optimize product value in all four steps Methods (excerpt) CUSTOMER TRANSPARENCY ALTERNATIVES VALUE A PREFERENCES B C D MAXIMIZATION Customer observation Cost driver analysis Product teardown Sales volume testing Focus groups Linear performance pricing Commonality Value engineering Part Functions Sub-Functions Fuel Fuel Tank Tank Fuel Total Pump Valves Shell Straps Gauge Value Added 1) [EUR] 100 90 80 70 60 50 40 30 Supplier 2 Supplier 3 Supplier 1 Target corridor Fuel Tanks SAFETY STORE FUEL DELIVER FUEL GAUGE FUEL Crash Worthiness 2 2 2 4 0 10 Fire Proof 0 0 1 2 0 3 Durability 2 0.5 0.5 12 0 15 Maximise volume 0 2 1 0 0 3 Easy to fill 0 1 1 0 0 2 Vent fuel gas 0 2 3 0 0 5 Provide supply at pressure 28 0 0 0 0 28 Maximize fuel suck up 2 0 1 0 0 3 Deliver while dynamic driving 3 0 1 0 0 4 Supply clean fuel 8 0 0 0 0 8 Tell customer whats left 0 0 0 0 7 7 Warn customer running out 0 0 0 0 1 1 20 10 0 Stop air in system 1 0 0 0 1 2 Emissions compliance 1 1 3 0 0 5 Fire proof 0 0 0 0 0 0 LEGAL COMPLIANCE Crash proof 0 0 0 0 0 0 0 9 10 11 12 13 14 15 16 17 18 Durability 0 0 0 0 0 0 Weight [kg] TOTAL 47 8 13 18 9 96 Cost drivers
Page 1 and 2: Mastering product complexity Düsse
Page 3 and 4: A. Key findings
Page 5 and 6: 5 A. KEY FINDINGS Product variety h
Page 7 and 8: 7 A. KEY FINDINGS Product variety a
Page 9 and 10: 9 A. KEY FINDINGS In the discrete i
Page 11 and 12: 11 A. KEY FINDINGS Four optimizatio
Page 13 and 14: 13 A. KEY FINDINGS Relevance of opt
Page 15 and 16: 15 A. KEY FINDINGS Automotive and F
Page 17 and 18: B. Examples of product complexity m
Page 19 and 20: 19 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 21 and 22: 21 B.1 CUSTOMER-ORIENTED CAR RETAIL
Page 23 and 24: B.2 Modularization strategy for a l
Page 25 and 26: 25 B.2 MODULARIZATION STRATEGY FOR
Page 31 and 32: B.3 Complexity reduction for an FMC
Page 33 and 34: Contribution margin 33 B.3 COMPLEXI
Page 35 and 36: 35 B.3 COMPLEXITY REDUCTION FOR AN
Page 37 and 38: 37 B.3 COMPLEXITY REDUCTION FOR AN
Page 39: 39 B.4 PRODUCT VALUE MANAGEMENT FOR
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Mastering product complexity (PDF, 3316 KB) - Roland Berger

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