Articles

custom orders

The management of custom orders in an Agile mode

In this article, I will talk about developing custom or personalized customer orders in Agile mode to respond faster to market demands.

To better understand the issue you can read some background:

The Italian structural condition of product development

The Creative Economy and Industry 5.0

That said, the question I am always asked is whether agile product development logics can also be applied to the development of “custom” customer orders.

Within a client order there is less flexibility on requirements that are part of the contract negotiation.

custom orders

I am dealing with this in a company that develops high-tech products within customer orders.

Contract requirements are largely characterized by performance characteristics: the weight, operating temperature, working range and so on.

These characteristics reverberate across a multiplicity of elements that make up the product backlog, that is, the set of things to be done.

What has emerged is that there is ample room for maneuver in design with respect to the value content provided to the customer.

If the customized product for the customer is breakable, which is very common, into a standard part, and a part that represents customization, two paralleland mutually integrated development processes can be created.

After an initial concept phase, which is essential to identify these two areas, the standard part can be developed with conventional Waterfall and/or Lean methods through the previously applied construction and supply channels.

Crossing lead times will be basically that of the standard machine plus time for concept development.

The custom part can be developed in an Agile way, integrating development phases, with accelerated build methods and dedicated procurement channels

In my experience, the design workload goes from a few hours, to put BOMs and specifications for the standard part, to hundreds of hours of development for the custom part.

Depending on the cost of delay, and thus the available budget, intermediate evaluations of design solutions are also possible with the construction of pretotypes and related test equipment.

It is in this case a virtuous combination of a traditional Waterfall and Lean approach, for the standard part, and an Agile approach for the custom part.

The meeting point is in the final stage of mating or assembling the custom and standard parts.

A modular product architecture is greatly functional in facilitating the separate development of these two areas.

The final phase can continue by integrating the two approaches, with a prevalence of iterative and incremental Agile approaches.

Thinking about the Italian landscape made up largely of manufacturing companies that develop customized products this can be a winning solution to enable mass customization.

Leave a Reply

Your email address will not be published. Required fields are marked *

Other insights into Agile product development that you might be interested in

Discovery & Construction

Product Discovery Product Construction

I talk to you about innovative product development, inspired by the book “
Inspired: How to Create Tech Products Customers Love ” by Marty Kagan. There is a big difference between leading companies and others in the product creation process. The key concept is “product discovery”: exploring and testing ideas before investing heavily. This is integrated with “product delivery” or “construction.” The author of the book stresses the importance of prototypes, which in HW I prefer to call “pretotypes,” and tools such as Lean Canvas and Story Mapping. There is too much focus on Scrum, when instead it is important to create truly useful functionality. The book is recommended for those who want to truly innovate.

Read More "

The pretypes i.e., the forerunners of the product

Pretypes are quick and inexpensive demonstrators to test key ideas before creating complete prototypes. I am talking about an automated palletizing project where we made a pretotype of the most critical component, which was the tray, in just 15 days. We saved several months and significant investment. This pretotype allowed us to validate the best materials with which to build the final tray.

Read More "

What is the Agile Factory – StoryTime Interview

In this interview with Antonio Panareo of Story Time, we talked about the agile innovation factory that I established during my last corporate experience. Establishing this agile factory was a real gamble and I talk about the experience I had with my teams.

Read More "