CPQ and product configurators for manufacturing approach

One way of looking at how configurators are used is to consider the link between sales and production. When products are simply selected independently of one another, we refer to a pick-to-order (PTO) or select-to-order (STO) approach. Configurations are not used here and the process simply involves selection.

The process of combining and configuring products is referred to as configure-to-order (CTO) or assemble-to-order (ATO), depending on the extent of the variance between the individual parts and assemblies to be used and the complexity of their dependencies. The product configurator and CPQ software are the key tools here. The components of the products are selected depending on one another and a specific combinational analysis (relationship-based logic) applies, stored in the CPQ software with rules and constraints. Only technically feasible, buildable combinations can be configured. As a special type of CTO task, make-to-order (MTO) requires less design effort. More complex dependencies exist between the individual components. Production takes place according to demand.

CPQ software needs to meet particular challenges in the area of engineer-to-order (ETO). Because they are not standard, products are extremely complex and cannot be produced in an automated manufacturing process. Although the products are pre-designed in technological terms, some/many aspects of their implementation depend entirely on customer requirements. Production here can involve batches as small as a single product. CREALIS® CPQ supports the requirement descriptions typically encountered in sales, as well as intelligent approval processes for representing the necessary workflow steps. Different people can work on a component within these workflow steps and approval processes for new components can be incorporated.