Product Complexity Defination

Product complexity definition What crossing complexity means to confer ambit and the industry? It heap be desex variantly based on the industry and the grocery store. A hand out heap think complexity is the uniform meaning with complicacy or simplicity. Unfortunely, both of the definition is wrong be piss complexity is something that interacts among each other and sub divide it in all its single elements and lead to the solution of the problems. complexity obligates a tag on chain inflexible and inefficient, Hoole writes. It also hampers on time deli genuinely and creates problems for yield quality. From the manufacturing caller-up stand point, it depart ca commit complexity when the variety everywhere the limit of the bring home the bacon chain. For example, to serve the various types of logistics customer, better technologies to make the merchandise, the divergent types of the sales channel, handle contrary types of raw materials and voices. Webster delim itate complexity as 1a) the quality or state being composed of twain or more(prenominal) than separate or analyzable items, separate, constituents, or symbol. 2a) having many alter parts, or elements, and consequently hard to understand. b) marked by involvement of many parts, aspects, and ask earnest study or examination to understand it. establish on ingathering formulate, it defines as proportional to the total sum up of design decision (Baldwin& Clark 2009). The procedure of perishs designed into harvestings (Griffin 1997a, 1997b), the numbers of components (Gupta&Krishnan 1999). Other than that, it defines as number of physical modules and by the floor of dependency (Kaski&Heikkila 2002). It also has three different definitions for the complex organisation bid it is a system that varietyes with the different parts in a complicated way and hard for the industry to understand. glut &Carson 1988). harmonise to Klir(1985), a system manifesting differentiation and c onnectively. Complexity is divided into 2 big categories multiplicity and tie inness into the products. A lot of times, product complexity nevertheless call as ceteris paribus and it means a product contain more components or more inter human consanguinity among it elements. Product complexity is defined as assessment about the number of components in a product. Industrial purchasing process advise affect by a multitude of complexities bring forth by the nature of purchased products, the organizational structure and the influences of the external environment.Other than that, product complexity is directly link to the add up chain operation management. Because of this, Jacob lit defines the complexity submit chain by the number of parts and degree of unpredictability, represents by three facts the number of components, extend of interactions, and degree of product novelty. in any case that, represent by the numbers of modules and markets, it also clear in the different types of the suppliers and their interaction. Because of this, Jacob define the product complexity as a design of multiplicity, relatedness to others, and product architecture elements.Multiplicity is a unique category and relatedness has three different types similar similarity, complementary, and inter-connectedness. Complementary is for economic sense of a product exchangeable mp3 player and music player (Jacob). Similarity is merchandise that sharing the same components, provide the same functions, and same benefit position of the products to the market. Other than that, According to Ulrichs (2005), inter-connectedness is a kind of connection of interface such as slot, and sectional typology.It also includes the logical and mechanical connection between two elements. For example, it modified of old products through the similarity of the components and the function of the products. (Jacob) Literature define Product portfolio complexity management as the combination of decisions, va lue systems, support process, and initiative pertaining to deciding and employing the most powerful product portfolio like mix product types, feature sets, and components types. Product complexity has several levels in system theory according to Boulding and Simons (1956, 1962).In the literature, the levels of the products be product categories, the portfolio of a regular offering, and extend of the product components level. Based on Henderson literature, product complexity had 2 objectives of funding requirements (generating large amounts of cash and estimate long marchess sales growth) and the risk mitigation. A lot of firms try to introduce the different types of products into the market to offset economic or political risk, as well as offer broader lines in the hope of increasing the opportunity of a product can become a runaway success. Mark) The other forces that like warring positioning will cause a firm to offer more products. The impact of product complexity Product co mplexity will cause problem in supply chain process execution related to product supply, manufacture, innovation, delivery, and support. Product complexity play a main role of affirm operation, the impact of it are complexity management, inventory, and measure. Inventory is a very important force to tie the streams to lether into the complexity management like the step-down inventory level or terms, and also focus on improving inventory position.Based on Krishnan and Gupta (2001) literature, relatedness and multiplicity has the implicit relationship and they found out the benefit to increasing the use of the common platforms was the function of components damages. According to Hoole, we need to use the right metric to measures complexity and the leader need to focus more careful on product and component rationalization. After that, it can use the metric result to manage the number of components of a product more effectively than others.For instance, the unit costs of the compone nts are standardized and not too high relative to alternative sufficient components, the increasing of platform will beneficial. By doing this, the come with has the advantageous on the cost effectively when they pursuing to the market segment because it increase the scratch and precipitate the complexity. A good combination of stool cam emerged on the national of modularity represent the increase of the complexity. It will enable scale economic (Pine, achiever & Boynton 1993), engineering efficiencies (Jacob), and improved coordination (Schilling 2000).All the benefits are shown analytically related to the cost components being standardized ( Fisher et al 1996). Modularity will have the grandeur impact on elements of competitive advantage according to the empirical research. Complexity wills increase cost and dominate the revenue benefit. (Lancaster, 1979 Moorthy, 1984). Product complexity affects the caller-up economics of the transaction costs and the sourcing and design in operation management. there are 2 theoretical perspectives in the effect of product complexity into operations.Theory of performance frontiers (TPF) and transaction cost economics (TCE). Strategic on managing supply chain complexity One of the way to reducing the complexity problems is to follow lean product and Just In Times manufacturing ( Womack 1990) essentially refer to the principle that the leaner, the better. According to the literature, a lots of the marketing managers, designers, and the engineers need to pay attention on the product innovation, mass customization, variety decline program, value analysis, and modularization to managing the product complexity ( Perona 2004).According to the Perona literature, it has empirical evidences to show the slipway to manage the complexity like the pin venture with the suppliers, product modularization, and teaching systems for yield planning and control. The main issue is the supplier can foster the company reduce comple xity and improve company performance. Based on the information that collected from the companies show that the company has the stable relationship get the lower complexity score and the company with the short term relationship has the higher complexity and hard to manage.By investing in joint venture the suppliers can help companies saves times in managing commercial transactions, decrease defects rates in delivery merchandise, improve the transaction reliability, and reduce the effective stock reduction. The product reengineering has the most control on the products to link in between marketing and production it will helps the them to cause miscommunication on the production process and improved their productions. Based on the transaction cost, company need to decide either in house production or outsourcing of components. most of the products are easy to outsourcing but it will cost a lot of production cost. Complexity always has the perspective the less complexity is always bet ter because it focus on reduce the procurement cost from reducing unique parts. The numbers of components that required manufacturing products increase, the effort dedicated to ensuring conformance will increase. It will increase the cost to make the products. Another research mentions that production process link to the measures of research and development effectiveness.To ensure successful supply chain complexity management, the management team needs to set targets for both managing advantageous complexity and reducing disadvantageous complexity for the employee to follow and work on it to set the differentiation level. The other steps to manage supply chain complexity are to identify the different type of disclose complexity drivers. It can divide in 3 different categories like configuration and structure, products and services, and process and systems. ConclusionSome of the company likes complexity because it can increase their sales based on the product differentiation. Based on the sales return and cost, complexity can create the potential for the topper level in product complexity portfolio. A lot of the company think that product complexity can help the company make different in the customer demand, the way on handle the supply chain and the relationship with supplier. Managing product complexity effectively can be daunting organizational task.Most if the times, the impact of the inventory of a company will reducing the safety stock to simplify the supply chain level based on the Degree of Commonality Index(DCI) increased. By doing this, it can help the company save money in the long term and reduce the transportation cost. If the company fail to handle the product and supply chain complexity will cause the company increased the cost and affect the quality of products in the lifecycle management. According to Hoole, it suggest the company to use the right metric to track complexity