Mastering product complexity (PDF, 3316 KB) - Roland Berger
Mastering product complexity (PDF, 3316 KB) - Roland Berger
Mastering product complexity (PDF, 3316 KB) - Roland Berger
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7<br />
A. KEY FINDINGS<br />
Product variety and ever shorter <strong>product</strong> lifecycles push up costs<br />
throughout the entire value chain<br />
Product variety costs in the value chain<br />
2<br />
Product<br />
development<br />
Planning<br />
Procurement<br />
Manufacturing<br />
Warehousing<br />
& distribution<br />
Marketing &<br />
sales<br />
> Additional<br />
design<br />
drawings<br />
> Additional bills<br />
of materials<br />
> More tests<br />
> Lower<br />
<strong>product</strong>ivity<br />
> Market testing<br />
> Product specs<br />
> Bill of<br />
materials<br />
> Decreased<br />
effectiveness<br />
– Multiple<br />
tasks<br />
– Crisis<br />
management<br />
> Systems maintenance<br />
> Forecasting<br />
> Planning tasks<br />
> Higher<br />
purchase<br />
prices on<br />
broader range<br />
of materials<br />
> Higher raw<br />
materials<br />
stocks and<br />
write-offs<br />
> Increased<br />
handling and<br />
inspection<br />
costs<br />
> Packaging<br />
> Scheduling<br />
> More frequent<br />
downtime<br />
– Changeover<br />
– Processrelated<br />
problems<br />
> Higher waste<br />
> Higher WIP 1)<br />
> Additional<br />
tools<br />
> Additional<br />
work<br />
schedules<br />
> More complex<br />
<strong>product</strong>ion<br />
control<br />
> Increased<br />
space and<br />
labor<br />
> Higher<br />
inventory<br />
levels (e.g.,<br />
safety stocks)<br />
> Increased<br />
handling and<br />
shipping costs<br />
(smaller<br />
quantities)<br />
> Inventories<br />
> Transport cost<br />
accounting<br />
> Additional<br />
staff training<br />
> Additional<br />
sales<br />
materials<br />
> Higher promotion<br />
costs and<br />
write-offs<br />
> More mistakes<br />
in order<br />
processing<br />
> Documentation<br />
> Availability/<br />
service level<br />
> Samples cost<br />
increase<br />
1) Work in progress
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