Product Portfolios and Portfolio Architecture

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Product Portfolios and Portfolio Architecture
Companies typically do not survive based on
revenues from a single product but rather offer a
variety of closely related products. It is
critical to make effective configuration choices
to a allow for the products to evolve.
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Architecture

• Portfolio Architecture
• Relates to a group or family of products.
• Design strategies revolve around whether to,
  how to, and the form of sharing components among
  the products in a portfolio.
• Product Architecture
• Relates to a specific product layout.
  Strategies for product design revolve around the
  products market and performance.

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Portfolio Architecture
Fixed Unsharing Portfolio Architecture
Each product in a portfolio is unique and shares
no components or systems with any other products
in the portfolio
Each product includes its own components. These
components are made only for the individual
product. Typically applied when the product has
high volumes.
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Portfolio Architecture
Platform Portfolio Architecture
The products share components, modules, or
systems. The common components, modules or
systems are called platforms.
Module product families. Two and four slice
toaster, share internal components such as
heating element, reflectors and controllers.
Variants
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Portfolio Architecture
Platforms and product families offer greater
variety at a reasonable cost.
Mass Customization Portfolio Architecture
Defined as a portfolio architecture with features
in the basic platform that can be varied to
satisfy the customers needs.
Adjustable-for-use platform car seat positions,
focus setting on cameras, variable power supply,
.
Fabricate-to-fit platform customer can special
order the platform at exact specification
desired. Cars interior, color, sound system,
wheels, ..
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Portfolio Architecture
Example Power Supply
Fix unshared architecture, power supply voltage
and frequency is fixed (110V, 60Hz) Platform
architecture (module product families),
manufacturer allows selection of two different
options (110V, 60Hz and 220V, 50Hz). Both of
which are fixed in the product once ordered and
purchased. Adjustable-for-use, the selection can
be made by the customer by a switch on the power
supply. Integral architecture, power supply can
operate at any input power from 110-240V and
50-60Hz.
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Platform Architecture
Platform architecture is effective for offering
variety at reduced cost.
Platform design and evaluation method. Example
Toaster

• List Desired Offerings
• After market research, design team decides on it
  could capture the market with a portfolio of
  three product offerings a two-slice and a
  four-slice household model and a four-slice
  commercial model.
• Market segment, first time purchasers
  (inexpensive), second time users (more effluent
  willing to pay more), large family and commercial
  users.

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Platform Architecture
2. List Design Options for Each Offering The
design team must establish different layouts for
each member in the product family.
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Platform Architecture
3. Determine Platform Options
Consider different options for components that
could be shared among three products A.
Electronic control board B. Heating elements
and reflectors C. Sheet metal chassis, loading
and holding mechanism
Sharing components will reduce development cost,
inventory and manufacturing equipment, but the
material cost will increases for each unit (no
optimization)
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Platform Architecture
4. Compare platform design options Consider
four evaluation criteria
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Product Architecture

• Relates to a specific product layout.
  Strategies for product design revolve around the
  products market and performance.

Modular Product Architecture Modular products may
be defined as machines, assemblies, or components
that accomplish a function through combination of
distinct modules.
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Modular Product Architecture
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Modular Product ArchitectureBenefits

• Improves the ability of a device to be
  reconfigured.
• Improves maintainability and serviceability of a
  device.
• New devices can be introduced into the market
  faster.
• Decouples development task.