Scenario-based Portfolio Management: Modelling Future Cost and Effect on Manufacturing

Abstract

As a response to the increased demand for more customized products at a lower cost and with shorter lead times, many of today’s manufacturing companies have embarked on the journey of modularization in either their product portfolio, their manufacturing setup or in both. However, transitioning towards a modular setup generates uncertainties on where and what to modularize, as well as on the consequence. Some of these questions can be answered and clarified through the use of data models, making it possible to create and test different architectural scenarios and thereby make decisions based on actual data rather than best guess and tacit knowledge. In order to get access to actual ERP data and be able to test and validate the method in a real life environment, this research is made in collaboration with a large manufacturing company using the design science methodology. The purpose of this research is to present an approach for creating a data model based on standard ERP data that will allow engineers and system architects to create strategic architectural scenarios and evaluate these in terms of expected savings, impact on manufacturing and other relevant parameters.