Increasing Revenue and Decreasing Cost

A product architecture which is well aligned with market requirements is the best foundation of an optimal product portfolio from a complexity perspective. Hence, the proactive development of a product architecture is crucial, especially for companies that are historically focused on reactively fulfilling customer needs or dedicated to just filling gaps to the competition. The challenge is to find the right balance between product complexity, component reusability and complexity costs.

  • How many different product architectures  or modules does my range of products require?
  • How do the product architectures distinguish themselves?
  • How is a modular architecture best designed and how should the modules be interfaced?
  • Which variance of parts or modules is optimal from a cost perspective?
  • Which degree of component commonality is required to achieve the target costs?
  • What are the target costs on part level?
  • Is the product architecture development process embedded in the development process?
  • Are suitable IT-tools available to implement a sustainable product architecture?
  • Is the organization structured for achieving suitable product architectures and what should change?

As the global market leader in Complexity Management we implement our methodologies fast and efficiently. The consultants of Schuh & Co. are highly efficient partners for our clients. Depending on the field of application we generally achieve up to:

  • 10-20 % cut product costs
  • 30 % increased development efficiency
  • 50 % faster time to market with our clients.

A selection of the tools used

Further information

  • 27.11.2019
    1 min.
    Smart Automotive Variant.CON 2019
    Smart Automotive Variant.CON 2019

    15 min.
    Journal - Ausgabe 1/2018
    Journal - Ausgabe 1/2018

    3 min.
    Journal - Ausgabe 3/2015
    Journal - Ausgabe 3/2015

    1 min.

    • Modular system for component manufacturer

      At a manufacturer of connectors, extensions to the portfolio and the development of new product variants were controlled in the past according to requirements by means of customer orders. The sequential new developments focused on the individual requirements of the customers. Synergies between products could therefore not be viewed and optimized holistically. This resulted in a fragmented portfolio with few commonalities. In terms of market strategy, the product range was now to be massively expanded and designed to be customer-neutral - but suitable for the target markets. At the same time, the product costs were to be significantly improved and the time-to-market time reduced. By means of a market segmentation, we derived the future portfolio together with the customer. With the help of the Complexity Manager, all product variants (external complexity) were forecast, and based on this, a technical modular system was designed for complexity-compatible implementation and the necessary component variants (internal complexity) were optimized. As a result, the use of common parts in the new portfolio was improved by a factor of 30.

    • Modular system for a machine manufacturer

      A machine tool manufacturer is struggling with increasing complexity in its product range and at the same time decreasing quantities and competitiveness. A large number of new developments in the recent past have not achieved the desired market success. In order to address this, we have designed a program architecture that is suitable for the complexity of the product range in cooperation with the customer and implemented it together with a new product architecture. The market was extensively analyzed and segmented according to requirements and new product strategies were developed. The product range was fundamentally restructured and aligned with the market requirements in the dimensions of variance, specification and target costs. Subsequently, technical modular systems were developed along the future machine series and first derivatives were implemented. The technical solutions and the module variants were optimized within the systems, taking complexity costs into account. The development process and organization were redesigned in accordance with the modular system. As a result, the internal complexity was significantly reduced and the development times of the modular machines were reduced by half compared to earlier developments.

    • Use Cases
    • Market segmentation and market evaluation
    • Functional analysis
    • Modular concept
    • Variant Mode and Effects Analysis (VMEA)
    • Modularization and interface matrix
    • Layer model for modules, parts and product features
    • Complexity cost allocation
    • Value Engineering
    • Target Costing


Anno Kremer
+49 241 51031 0