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Finn-Power Italia Develops and Implements a Method to Cope with High Product Variety and Frequent Modifications

Department of Management and Engineering, University of Padova, Stradella S. Nicola, 3, 36100 Vicenza, Italy
Department of Electrical, Managerial, and Mechanical Engineering, University of Udine, Via Delle Scienze, 208, 33100 Udine, Italy
pamela.danese{at}unipd.it
pietro.romano{at}uniud.it

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.

Key Words: industries: machinery; organizational studies: decision making