Article ID: | iaor20063457 |
Country: | United States |
Volume: | 35 |
Issue: | 6 |
Start Page Number: | 449 |
End Page Number: | 459 |
Publication Date: | Nov 2005 |
Journal: | Interfaces |
Authors: | Danese Pamela, Romano Pietro |
Keywords: | decision, organization |
Finn-Power Italia produces automated machines for sheet metal bending, which it sells in more than 60,000 configurations, obtained by combining several options. Furthermore, designers often modify the product. Bending machines can produce very different products, from baking ovens to panels for ventilation systems for cruise ships. We developed and implemented a method of using planning bills and product modularity to deal with high product variety and frequent modifications. Planning bills are an artificial grouping of components used to simplify forecasting and material planning. The method develops (1) decision-support models that simultaneously translate sales specifications for new or changed options into product documentation, and engineering changes into saleable options; and (2) planning bills that need not be fully revised as products change.