Optimising product configurations with a data-mining approach

This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, redistribution , reselling , loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up to date. The accuracy of any instructions, formulae and drug doses should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of this material. Customers benefit from the ability to select their desired options to configure final products. Manufacturing companies, however, struggle with the dilemma of product diversity and manufacturing complexity. It is important, therefore, for them to capture correlations among the options provided to the customers. In this paper, a data mining approach is applied to manage product diversity and complexity. Rules are extracted from historical sales data and used to form sub-assemblies as well as product configurations. Methods for discovering frequently ordered product sub-assemblies and product configurations from 'if-then' rules are discussed separately. The development of the sub-assemblies and configurations allows for effective management of enterprise resources, contributes to the innovative design of new products, and streamlines manufacturing and supply chain processes. The ideas introduced in this paper are illustrated with examples and an industrial case study.