Improving inter‐functional coordination to face high product variety and frequent modifications

In an effort to better respond to heterogeneous customer needs, an increasing number of companies in different sectors deal with the combination of high variety and frequent product changes/modifications. This entails planning, designing, purchasing and manufacturing activities and exacerbates the alignment of Sales, Production Planning and Engineering goals. This paper aims to suggest a way of improving coordination between such functional areas in contexts characterised by high variety and frequent product changes. Based on the data from an action Research study, a method for taking the contrasting requests of Sales, Production Planning and Engineering into account simultaneously and to facilitate the coordination of their activities is developed. It leverages Modular Bills and product modularity to improve inter‐functional coordination. Initial indications are promising. However, given the specific nature of the studied case, further research is required to evaluate the generalizability of the findings.