=Paper= {{Paper |id=Vol-2220/08_CONFWS18_paper_10 |storemode=property |title=Do You Read Me? On the Limits of Manufacturing Part Numbers for Communicating Product Variety |pdfUrl=https://ceur-ws.org/Vol-2220/08_CONFWS18_paper_10.pdf |volume=Vol-2220 |authors=Aleksander Lubarski,Frank Dylla,Holger Schultheis,Thorsten Krebs |dblpUrl=https://dblp.org/rec/conf/confws/LubarskiDSK18 }} ==Do You Read Me? On the Limits of Manufacturing Part Numbers for Communicating Product Variety== https://ceur-ws.org/Vol-2220/08_CONFWS18_paper_10.pdf
    Do You Read Me? On the Limits of Manufacturing Part
        Numbers for Communicating Product Variety
               Aleksander Lubarski1,2 and Frank Dylla2,3 and Holger Schultheis3 and Thorsten Krebs2

Abstract. Manufacturing part numbers (MPNs) are used to                         In this context, alphanumeric strings have been used to
communicate product variety both for internal purposes and for              communicate product variety both for internal purposes and for
external representation to customers. To simplify this                      external representation to customers [4]. For referring to these
communication, MPNs have been originally developed as human-                strings various denominators are common practice, e.g., type code,
readable abbreviations of those characteristics that uniquely identify      order code or ID, part ID or number. For reasons of simplicity, we
a product variant out of a modular system, thus acting both as an           will use the term manufacturing part number (MPN, see Section 2.3)
identifier and a description. However, the increasing complexity of         throughout this paper. MPNs are codifications of product
customer requests forces component manufacturers to expand their
product portfolios, thus pushing the descriptive character of a classic
MPN to its limits. Ongoing digitalization drives product
identification towards fully-digital possibilities. Nevertheless, in
reality component manufacturers still rely on MPNs. Against this
background, the purpose of this paper is to analyze the cognitive and           Figure 1. Exemplary MPN structure for a rotor system (Lautner GmbH)
systemic characteristics of the MPN with regard to the underlying
product structure (PS). As a result, we derive evaluation criteria for      characteristics or functions (e.g., information on its structure,
the quality of mappings from PS to MPN and apply them to typical
                                                                            material composition, production process) and act as a distinct
business use cases. In doing so, we provide the first systematic
                                                                            identifier of a certain product combination (Figure 1). Typical use
overview and discussion of factors that determine MPN’s utility and
usability as well as give practical guidelines for component                cases for MPNs range from initial product search to reordering or
manufacturers regarding the selection of appropriate MPN types. 1 23        maintenance of a particular machine. Within this paper, we focus on
                                                                            the appropriateness of such numbers for the purpose of
                                                                            communicating product variety, i.e., visible features. In practice,
1         INTRODUCTION                                                      oftentimes the corresponding stakeholder is provided with relevant
                                                                            supplementary documents that explain the structure and the logic of
With the growing trend of customization and the overall direction
                                                                            the MPN and accelerate the process of “deciphering” its information
towards a lot size of one, manufacturers are facing new requirements
                                                                            (e.g., tables, graphs, dictionaries). However, although originally
of representing their product portfolio in a clear and structured way,
                                                                            developed to be human-readable in order to simplify the customer-
as well as understanding their customers’ demands. This is a concern
                                                                            supplier communication, we ask the following questions, since
particularly in the business-to-business (B2B) markets, where
                                                                            many things have changed:
complex machines (and even machine parts) consist of numerous
                                                                            •     Is it still necessary and monetarily reasonable to use MPNs that
modular elements, thus offering almost unlimited configuration
                                                                                  are human-readable 4?
possibilities to the customers. For example, compared to a BMW              •     Where are the limits of different MPN types and what should
series 7 who offer as many as 1017 possible variants [1], Lenze AG                the selection of the appropriate MPN depend on?
claims to have up to 1030 configuration possibilities just for their        In particular, there exist various reasons to switch to a completely
gear motor, each of which resulting into a separate identifier.             digital MPN. First, the descriptive character within any human
However, if not structured properly, an unnecessarily high product          interaction works only as long as a certain length and complexity of
variety can become counter-productive, since customers can get              the MPN is not exceeded [5]. For products with a rich variety the
confused about the differentiation among product variants [2]. In           number of product characteristics and, consequently, configuration
this way, while a modular product structure promises a compromise           possibilities, is very high. In this way, at some point, the MPN may
between customer-driven customization and manufacturer-                     become too complex and confusing for involved stakeholders. In
motivated standardization [3], the structuring and the                      case a customer is not able to fully understand how a specific MPN
communication of “what’s possible and at what price” is a very              relates to the corresponding product may result in delays or incorrect
important, but also a challenging task.                                     orders, potentially damaging the customer-supplier relationship.


1                                                                           4
  Industrial Services Group, University of Bremen, lubarski@uni-bremen.de     In this publication we define “human-readable” as the code feature to be
2
  encoway GmbH, {aleksander.lubarski, frank.dylla, krebs}@encoway.de        read and comprehended by the human, while “machine-readable” or
3
  Bremen Spatial Cognition Center, University of Bremen,                    “digital” can be processed solely by a digital medium
{dylla, schulth}@informatik.uni-bremen.de
Second, since B2B customers have to deal with dozens of such                 PS mapping are explained in Section 3. The evaluation criteria are
structures a day from different suppliers, they are no longer willing        then applied to the typical business use cases in Section 4. The paper
to invest their time in understanding the internal product structure of      concludes with a summary of the results, possible limitations as well
each of their partners [6]. This leads to the overall decline of the         as future research opportunities.
technical know-how in the market, thus making human-readable
MPNs containing these technical details rather obsolete. Third,
company mergers and acquisitions may result in inconsistencies and           2         THEORETICAL BACKGROUND
redundancies in the data management 5 [7]. On the one hand, both
companies could have similar nomenclatures (or even same serial              2.1                 Code Function and Code Word
numbers for different products), thus causing confusion for the
future product handling. On the other hand, the customers of the             In general, a code is an agreement on sets of meaningful symbols for
company would get an additional structure to deal with, thus                 the purpose of information exchange between a sender and single or
increasing the complexity of variant management and                          multiple recipients (e.g., [10], [11]). For this purpose, the sender
communication.                                                               encodes the information, which needs to be decoded by the recipient
    Nevertheless, despite all advantages mentioned above, it would           with the same coding schema. From a mathematical perspective, a
be narrow-minded to claim that a digital (i.e., only machine-                code is an injective mapping from a domain element (𝑥𝑥 ∈ 𝐷𝐷) to an
readable) MPN is a universal solution for the efficient                      element of an image set (𝑦𝑦 ∈ 𝐼𝐼). Furthermore, the resulting image
communication of the product variety for every manufacturer. The             must not be empty:
most obvious argument against the abolishment of human-readable                                            𝑓𝑓: 𝐷𝐷 → 𝐼𝐼 +
MPNs is the complete dependency on a digital device (e.g., QR code           In the context of codes 𝐷𝐷 and 𝐼𝐼 are considered finite alphabets, i.e.
reader, barcode scanner) to read and understand the MPN. Examples            arbitrary sets of symbols with a limited number of elements. In
of situations when this could be problematic include product                 general, codes can be applied for abstracting or abbreviating
manufacturing, where a person using an MPN as a guideline for                information and its dependencies. In that sense, not only the Morse
assembly would have to interrupt the production process, or general          code or the internet acronym LOL (“laughing out loud”) is a code,
network coverage problems leading to the inability to use a central          but also traffic lights.
referral database. As for other non-functional requirements, the                 From a communication perspective, a code is a translation from
transition to the digital MPN would result in additional hardware-           the sender’s original information or message to some
related costs as well as general efforts for restructuring. Moreover,        communication means (encoding or encryption), e.g., digital
such an initiative could also meet the opposition of the users               impulses, sound or flags. If the code function is known to the
themselves, who are generally reluctant to any structural changes,           recipient, the original information becomes easily decodable
since they are used to the way the things are currently handled [8].         (decoding). Otherwise, the recipient is not able to restore the
Finally, since a digital MPN has all the freedom regarding how much          information at all (no decryption possible). Each code word (a
information it can hold and thus communicate, product                        sequence of symbols), which is derivable by the code function, is
manufacturers might get tempted to put too much information (if not          called a valid code word. Following these definitions, the transfer
all of it) in one single digital ID, e.g., a QR-code, thus overwhelming      from a product structure (PS), i.e., simplified a set of product
their customers, who would spend additional time for finding the             characteristics with certain values, to some part number, e.g. an
relevant information [9].                                                    MPN. The code function is the schema which characteristics are
    Overall, while digital identifiers such as RFID integrated into          considered and how the corresponding values are represented in the
ERP systems have been proposed more than a decade ago, the reality           resulting code word, i.e., a product-specific MPN. In the remainder
shows that product and part manufacturers are still far away from            of the paper, in general, we will not distinguish between the code
the best practice, which calls to find out why. Motivated by the             function and the resulting code word and use the term ‘code’
heterogeneity of the involved stakeholders and an overall specificity        synonymously.
of product configuration in the B2B markets, we believe that                     The application of codes is closely related to efficiency, which is
different MPN structures are needed depending on respective                  achieved by reducing complexity regarding the original information,
application scenarios. Therefore, by applying methods from                   i.e. by abstraction, abbreviation, or compression. As it takes the
information theory and insights from cognitive science we analyze            effort to design a code, a code gets more efficient the more often it
relevant characteristics of MPN as well as define evaluation criteria        is used. Additionally, some codes use a modular architecture (i.e.
for how well the MPN can map the underlying product structure                decomposition of a complex system in separate functional units) for
(PS). By showing that there exist five typical business use cases and        reasons of efficiency.
thus no universal MPN we contribute to the theoretical discussion                With this theoretical background in mind, we consider the
on knowledge representation and pave the ground for further                  relation between code functions and MPN generation from a
research. In addition, as current pragmatic solutions of the                 psychological perspective in more detail in Section 3.
practitioners are rather narrow-minded without considering their
efficiency, we give practical guidelines for the selection of an
appropriate MPN.                                                             2.2                 Variant Management
    The remainder of this paper is organized as follows. After giving        Due to a high level of heterogeneity and a tight customer
a short overview of the theoretical background in Section 2, the             involvement both in the product design and manufacturing [12],
aspects of MPN and PS, as well as evaluation criteria of the MPN-

5
  Project experience of the authors shows that these kinds of problems may
arise even between units of the same company.
B2B manufacturers are constantly searching for new ways of                universal definitions or terminology. The challenge lies in the
standardization without diminishing their ability to go the last mile     applied nature of the topic and its historical development – not only
for their customers [13]. In this context, the introduction of the        do the terms and labels differ between companies (especially across
modular product design (i.e. building a complex system out of             different domains and fields of operation), but sometimes even
exchangeable modules with a clear function and defined                    within the same company, depending on the department and the use
connectivity interfaces) has led to a series of organization and          case. For example, the term “type code” is often used for the
production changes, thus expanding configuration possibilities            description of product groups, even though this term has already
almost exponentially [14]. This resulted in the introduction of such      established itself in the context of digital storage media, e.g., DVD
manufacturing concepts as Mass Customization [15] and an overall          and Blue-ray [20]. Other misleading terms for the same purpose
higher interdependence of the supply chain partners.                      include “Product Key” or “Type Designation Key”, which are used
    However, while a modular product structure promises a                 either when installing software programs or when describing
compromise between customer-driven customization and                      specifications and configurations of computer drives [21]. The fact
manufacturer-motivated standardization [16], the variant                  that there exists no standard (international) specification or central
management throughout the whole product lifecycle becomes                 point of reference makes it even more confusing for the
increasingly challenging. A good overview of the sources of               communication with partners and customers.
complexity in engineering design and manufacturing is given in [5],           Irrespective of the use case, each product or service needs a
where complexity is considered as a multi-faceted measurement that        certain description for the purpose of identification and explanation,
is influenced both by endogenous and exogenous drivers.                   containing compressed information in the form of characteristics.
    ElMaraghy et al. [17] define variety as “a number or collection       Oxford Dictionary defines Identifier (ID) as a sequence of characters
of different things of a particular class of the same general kind”,      used to identify or refer to an element, such as a variable set of data.
with a variant being an instance of a class that exhibits (slight)        Such an ID can refer either to a unique class of objects with a certain
differences from the common type. The overall goal of modular             level of abstraction (i.e. products that are grouped based on a certain
product structures is the minimization of inner variety while             set of characteristics while, possibly, ignoring further details), or be
maximizing outer variety. In other words – to offer customers as          used for an identification of a specific physical object. A typical
many individualized products as possible with as few parts in             example of the object identification is a serial code or Serial Number
production as possible [16]. Additionally, when talking about             (SN), which is usually comprised of numerals even though other
variant management it is reasonable to differentiate between its two      typographical symbols are also possible. In most cases, the SN is
levels – strategic and operative. While the strategic level               built with no particular logic or predefined structure, as it is assigned
concentrates on “determining and mastering the variety of the             incrementally or sequentially to an item in the production [22] and
product portfolio in such a way that it is aligned with the competitive   thus cannot be read or interpreted by any of the stakeholders. On the
and the product strategy”, the operative level implements and             contrary, Manufacturer’s Model Number (MMN) is a solely
secures the overall variant strategy [18]. This publication focuses on    marketing-driven succinct and catchy description with the purpose
the operative level since MPNs are used for the identification and        of evoking certain associations and interpretations when being
representation of a certain product instance or a category of product     communicated to the customers. However, the inevitable problem
combinations, thus supporting the actual implementation of variant        with the MMN is its necessary level of abstraction – driven by either
management. At this point, we assume that a modularization process        customer’s cognitive capacity (e.g., the ability to remember a certain
has already been conducted and a modular product structure is             string) or system limitations (e.g., input fields of ERP systems are
already given as an input. More information on these steps can be         often limited in length), the MMN has to concentrate only on the
found in [16].                                                            most important product characteristics (e.g., iPhone SE 64 GB
    The challenge of operative variant management resulted in the         black) thus neglecting other valuable product information [4].
emergence of a specific market for so-called CPQ-systems [19],                Against this background, a compromise between production-
which can be integrated into existing enterprise software. CPQ            driven machine readability and marketing-driven human-readability
software enables product configuration (C), its respective pricing (P)    can be reached by using the term Manufacturer’s Part Number
and creation of a unified quote containing all necessary information      (MPN) [23], which is the focus of our publication (Figure 2). While
of the offer (Q). While these quotation documents contain all the         also being an identifier for a unique class of objects just like MMN,
details about the desired machine or its component, MPNs are a            the MPN contains much more information and is historically built
more compact information representation used for internal and             upon a certain predefined structure, which is often sent directly to
external communication of the product variants and variant                the customer. 6 Here, an SN is a particular instantiation of an MPN
identification. As of today, both the topics of CPQ-systems and           acting as an identifier within a certain context. Therefore, an SN
MPNs have not been devoted enough academic attention, even                alone cannot be used as a unique identifier (UID), i.e., guaranteed to
though they are used in practice on an everyday basis.                    be unique among all identifiers used for those objects and for a
                                                                          specific purpose, as companies may have identical serial number
                                                                          systems for different products within their product portfolio. Instead,
2.3                 Product Identifiers                                   a UID can be created by combining both the MPN and its particular
Since the topic of variant management and product identification          instantiation SN, e.g., “Model X” and “Serial Number 238912”.
involves different research disciplines such as engineering,              From a mathematical point of view, an MPN is a code word, which
marketing, information systems or even psychology, there exist no


6
  For example, the manufacturing company SEW has a 15-page document
showing the structure of their MPN.
                                                                          the MPN. In this way, it was possible to show that there exists no
                                                                          universal MPN, but rather that its selection depends on certain
                                                                          industrial, company, and customer characteristics (Result D).


                                                                          3.2                    Formal definition
         Figure 2. Different identifiers and their interrelationship      While it may seem that an MPN is just a string of characters, it has
                                                                          numerous systemic and cognitive aspects, which influence its
is derived by a code function from the product structure taking a
                                                                          communication and variant management in general. In this context,
subset of characteristics into account (cf. Section 2.1).
                                                                          MPN generation can be seen as a specific mapping ℳ that is used
                                                                          to represent a given (fixed) product structure in an understandable
3         MPN-PS MAPPING EVALUATION                                       way (cf. Section 2.1), aiming to be both complete and easy to use
                                                                          (Figure 4). With different product structures and company’s
                                                                          specificities, there are many ways to approach such a mapping,
3.1                   Methodology                                         ranging from a mere enumeration of all possibilities up to the
                                                                          complex nested configurable structure, meaning that the quality of
For the purpose or transparency and traceability of our results, we
                                                                          the mapping can be evaluated for a specific context. We define such
first give an overview of the methodology used in this paper (Figure
                                                                          an evaluation function ℰ of mapping ℳ with respect to a specific
3). It consists of the metaphases Orientation and Application of the
                                                                          need or application of the generated MPN, defined by a set of
MPN, each containing two consecutive steps along with the applied
                                                                          evaluation criteria 𝒄𝒄 = [𝑐𝑐1 , … , 𝑐𝑐𝑚𝑚 ] and corresponding outcomes 𝒙𝒙 =
technique (textual description) and preliminary results (rectangles).
                                                                          [𝑥𝑥1 , … , 𝑥𝑥𝑚𝑚 ]:
                                                                                               ℰ(ℳ, 𝒄𝒄) = 𝒙𝒙 𝑤𝑤𝑤𝑤𝑤𝑤ℎ 𝑥𝑥𝑖𝑖 ∈ [0. .1]
                                                                          Based on the insights from the expert interviews (Figure 3, Step 1)
                                                                          and literature review (Figure 3, Step 2), in this publication, we
                                                                          concentrate on the general mapping ℳ and the definition of the
                                                                          corresponding evaluation criteria as well as their testing for different
                                                                          use cases. The subsequent optimization problem, i.e. finding an
                                                                          optimal MPN with respect to a given set of criteria, is beyond the
                                                                          scope of the publication and is left for the future research.
                  Figure 3. Overall paper methodology
Due to the applied nature of our research, first, we contacted the        3.3                    Product and MPN structure
practitioners in order to identify current problems in variant
                                                                          When talking about the evaluation of the MPN it is important to
management and product configuration (Step 1). For this, we
                                                                          differentiate between two different types of structure (Figure 4).
cooperated with one German consulting company, which specializes
                                                                             The Product Structure is a rigid arrangement of elements that is
in CPQ-Software for complexity reduction and simplification of the
                                                                          used to depict product compositions and configuration possibilities.
quotation process. By conducting semi-structured expert interviews
                                                                          Unlike the MPN structure, the actual product structure (i.e. what
[24] with eight of its previous customers, we were able to gather first
                                                                          elements a complex machine consists of, what possible
insights on the challenges concerning MPN and confirm that
                                                                          combinations are there, etc.) states the core of the value proposition
different use cases require different types of MPN (Result A).
                                                                          and thus cannot be changed. In this regard, the Number of Product
   As a second part of the orientation phase, we then conducted a
                                                                          Characteristics shows which parts of a complex product can be
systematic literature review (Step 2). Sadly, despite its practical
                                                                          substituted or exchanged if desired. Similarly, such a modular
importance, the topic of MPN structure and its deployment has not
                                                                          product composition and interface specifications determine the
received enough academic attention yet. Therefore, in order to place
                                                                          Configurable Variety, thus enabling satisfaction of customer
our research within an ongoing theoretical discussion, we also
                                                                          heterogeneous requirements. However, as mentioned earlier, a
looked at the adjacent topics of variant management, complexity in
manufacturing, and production identifiers. In this way, we were able
to identify various MPN aspects, which are relevant for the
communication of the product variants (Result B).
   The second phase dealt with the application of the MPN in the
real-life context. For instance, based on the results from the
orientation phase we were able to derive systemic and cognitive
evaluation criteria for the MPN-PS mapping in Step 3 (Result C).
Since this publication is meant to open a discussion on the topic, we
did not provide any specific metrics but remained merely on a
conceptual level. Finally, with the help of the conducted expert
interviews and based on our own experience from previous projects
in Step 4 we defined five business use cases for the MPN
deployment, including stakeholder description and requirements for              Figure 4. Depiction of the product structure with the use of MPN
higher configurable variety does not necessarily mean a better                   preferences, the human user should be able to map the MPN to a
portfolio, since an excessively high variety can even be counter-                corresponding product 1) quickly, 2) with acceptable accuracy, and
productive, as customers can get confused about the differentiation              3) without extensive learning. A prerequisite for achieving this is
among product variants. Finally, the actual Composition of the MPN               that the MPN and the mapping realized by it are conducive to the
along with the sequential arrangement of the characteristics within              way in which humans process information. For example, consider
is influenced by the product structure. In other words, the                      the acronym "TDI" to characterize a property of car motors. If
stakeholder is able to read and understand the information encoded               confronted with this acronym in the context of cars, people may
in the MPN only as long as he/she knows what symbol is responsible               already "know" that the car being under consideration has a diesel
for what characteristics.                                                        motor with "Turbocharged Direct Injection". 7 At this point, the
    The MPN structure, on the other hand, is flexible and can be                 question arises: how or why do people know this? If observed
adjusted according to the company’s preferences. A cleverly picked               separately, these three letters "TDI" could also stand for something
MPN can enhance human understanding and thus its overall                         else, e.g., "Total Dream Interior", thus describing some arbitrary
manageability and understandability, whereas a bad MPN may                       aspect of the car. The only source for this knowledge is the memory
confuse both the company employees as well as their customers.                   of the person having to deal with the acronym. In other words – the
This includes the Length of the MPN, which may sometimes be                      working and usability of MPNs for human users relies critically on
challenging, since many ERP systems (e.g., SAP) have an integrated               the memory capacity of the human user.
limit on the string length, thus indirectly forcing product                          The human cognitive system is commonly conceived as
manufacturers to use shorter codes [4]. Another important MPN                    consisting of several different types of memory stores [25]. For
characteristic is an average Characteristics Richness showing how                reasons explained in the following, the two types of stores most
many variants are encoded inside single characteristics. This aspect             relevant for our considerations with regard to MPNs are working
is especially important if the MPN is human-readable and a person                memory (WM) and long-term memory (LTM). Information recently
operating it has to remember all the variants of every characteristic            having or currently being processed resides in WM. As such, WM is
by heart. Finally, the amount of configurable feasible solutions is              assumed to be limited in capacity as well as in the duration that
limited by the applicable logical rules (e.g., IF, XOR, AND), which              content will remain accessible. Although exact estimations vary it
can be summarized by the aspect Dependency Density. Although                     seems clear that no more than 10 items of information can be
acting as a limitation to the possible solution space, dependency                maintained simultaneously [26, 27]. If the information in WM is not
density increases the complexity of the MPN and thus its                         used, it will be lost within a few seconds [28]. Human LTM, on the
applicability by a human stakeholder. Looking at the long-term life-             other hand, can store vast amounts of information (see [29] for
cycle of products, another central aspect is the Extensibility of the            estimates) over very long time spans (just think of old people telling
MPN. This is particularly important for products, which are still in             stories from their childhood). In fact, depending on the usage
the development and it is foreseeable that new characteristics may               frequency, information from LTM can be retrieved into WM and
be added according to customer’s preferences or market’s                         information residing in WM may be transferred to LTM for more
development, e.g., by adding functionality by software updates. The              permanent storage. Going back to the "TDI" example, it seems most
level of extensibility can hereby range from practically impossible              likely that knowing that "TDI" signifies "Turbocharged Direct
(e.g., rules defining the MPN structure prohibit any further                     Injection" is retrieved from LTM. If it was not the case, it would
extension) or cost-inefficient (e.g., requiring database connectivity)           have had to be maintained in WM since first learning what "TDI"
to complete freedom (e.g., no limitations within a digital MPN).                 means. This may be the case when someone first tells you what
Finally, the choice of MPN Representation type predefines how it                 "TDI" means in the domain of car motors, but on later encounters, it
will be used between the involved actors. Three possible types of                seems unlikely that the meaning of the acronym has been constantly
MPN representation can be differentiated, each with its advantage                maintained in working memory for the whole time. Given that LTM
and limitation: (i) human understandable MPN that can be read and                plays a central role in the human use of MPNs, it is instrumental to
assessed without any additional help, meaning that human operator                consider some of the properties of how information is represented
needs to know the MPN structure and characteristic meaning by                    and organized in LTM. Two properties seem particularly
heart; (ii) human readable MPN that can be read and assessed using               noteworthy.
a certain (analog or digital) code translator or additive requiring a                First, human LTM is associative [30]. Certain concepts/pieces
certain level of know-how of the user; (iii) machine-readable MPN                of information are associated with each other such as, for example,
that can contain almost unlimited amount of coded information                    the concept of "fire" is associated with the concept of "heat". In
within product characteristics, without any know-how requirements                particular, these associations are a major means of retrieving
for the user, but with a high dependency on a digital scanner.
                                                                                 information from LTM. If a current item in WM is sufficiently
                                                                                 strongly associated with some other piece of information in the
3.4                    Mapping evaluation criteria                               LTM, retrieval of this other information is greatly facilitated. If, for
                                                                                 instance, "TDI" is sufficiently strongly associated with
Once an appropriate MPN and a clear mapping of the product
                                                                                 "Turbocharged Direct Injection" in the context of cars, seeing the
structure to the MPN is created, the question arises how well a
human can employ it, with or without any auxiliary means, i.e. how               acronym will allow retrieving the desired information.
complex the code function is w.r.t. human processing (cf. Section
2.1). If we abstract from specific company restrictions or personal


7
 Due to its direct connection to the fuel type Diesel it is also considered as
“Turbocharged Diesel Injection”.
    Second, knowledge organization in human LTM is hierarchical             •    The more easily (parts of) the MPN can be maintained in
[31, 32]. This means that human LTM has a tendency to be                         working memory,
organized into categories, subcategories, and concrete instances. If        •    The fewer associations have to be memorized,
asked to enumerate properties/instances in a certain domain, people         •    The more previous knowledge can be drawn on, and
will often enumerate aspects (sub)category after (sub)category. Vice        •    The clearer it can be structured hierarchically.
versa, if people are asked to memorize a (large) list of properties, the
ability to memorize the given information increases considerably, if
                                                                            3.4.2                          Processing speed
the material can be (and is) organized hierarchically. Having
expounded the crucial characteristics of human memory, we now               Processing speed can be assumed to be directly related to the length
relate them to the readability, learnability, and processing speed of       and the complexity of the MPN: The shorter the MPN and the less
MPNs.                                                                       complex (i.e., the fewer associations) the faster the human user will
                                                                            be able to map the MPN to the product. Direct mappings can be
                                                                            assumed to be faster than hierarchical mappings, because each level
3.4.1                           Readability / Learnability                  in the hierarchy requires a separate mapping, while a direct mapping
                                                                            – once sufficiently learned – involves only a single mapping process.
In the context of this publication, we consider an MPN readable, if         If a hierarchical MPN is employed, the order in which MPN parts
a human user can map each MPN to the corresponding product (a)              signifying different (sub)categories appear in the MPN will have an
virtually without error and (b) without any supporting material (e.g.,      influence in processing speed. At least in western culture languages,
tables, software). Thus, the following requirements have to be met:         representing highest to lowest (sub)categories by MPN parts ordered
•      The MPN has to be short enough to be held in WM completely           from left to right (the predominant reading direction) will likely lead
       or it has to consist of several meaningfully separable parts, each   to faster MPN processing than other orderings. Consequently, the
       of which is short enough to be held completely in WM.                processing speed of MPN increases
•      The MPN or its meaningful parts have to be sufficiently              •    The shorter the MPN,
       strongly associated in LTM with the product aspects they             •    The fewer associations are involved,
       represent.                                                           •    The fewer hierarchical levels are involved, and
The first requirement seems comparatively easy to achieve. A ten-           •    The more the ordering of the hierarchy levels in the MPN
arity code using letters and ciphers is able to represent about 3510             corresponds to the reading direction.
different product variants. The second requirement is tightly related
to the learnability of the MPN, that is, to the feasibility of acquiring    4         USE CASES
all necessary associations and the speed with which they can be             Motivated by the diversity of the customer requirements and
acquired. As a result, the second requirement is much harder to             specificity of product configuration in the B2B markets, we propose
satisfy as soon as we are dealing with large-scale variant spaces.          five different application scenarios also referred to as “use cases” in
There seems to be an upper limit of only around 5000 arbitrary              the context of business modeling [34]. The use cases are based on
associations that human LTM can store, while learning a good 3000           the expert interviews and insights from the previous projects (Figure
arbitrary associations took a whole year (incremental training with         3). To ensure comparability, we describe each of the use cases using
three sessions each day) [33]. If the human user is supposed to go          following characteristics: (i) role of the involved actor, (ii) his/her
                                                                            aim and objective, (iii) current know-how level in the field, as well
beyond such limitations, the code either needs to build on and reuse
                                                                            as (iv) what is expected from the desired solution. Consequently,
existing associations or the code has to be organized hierarchically
                                                                            with the help of the previously introduced evaluation criteria, we
or both. The simplest form of reuse is to employ non-arbitrary              derive individual MPN requirements for each of the use cases (Table
mappings. For example, in the case of "TDI" the acronym is much             1). For simplicity reasons, the costs relating to the implementation
easier to memorize than arbitrary acronyms (e.g., "XYZ"), because           and maintenance of a specific type of MPN (e.g., establishing the
the letters in the acronym are the starting letters of the crucial words    new MPN structure, employee training, structure maintenance) is
in the product description and, thus, the letters are already associated    beyond the scope of this paper but should be considered in future
with the target words. More elaborate forms of reuse may involve            research.
exploiting more domain-specific knowledge of the human users. A                  Starting with the customer side, one particular type of users is a
hierarchical organization of the code would allow reducing the              Rare Guest, who is characterized by a low frequency of MPN use
number of associations that need to be stored at each level of the          and the need for a specific (one-time) solution. These customers
hierarchy, while still allowing to cover a large variant space with the     have little to none expert knowledge on the topic, either because of
MPN. For example, the first digit of the MPN may signify whether            the involvement in various supply chains or due to the overall
the product is a car or a motorbike with the remainder of the key then      unwillingness to deal in detail with the product structure of the
being specific to the type of vehicle (car or motorbike). The upper         particular manufacturer. Their expectation towards the
limit of possible associations that can be stored when drawing on           communication of product variety is a mere satisfaction of their
existing knowledge and hierarchical organization is hard to predict         request with as little effort as possible. In this way, the rare guest
and will probably also depend on the individual user. Nevertheless,         would not appreciate the efficiency of the MPN (e.g., through the
it is clear that the readability/learnability of the MPN increases:         digitalization), but would be disappointed if standard functionalities
                                                                            are not functioning properly. At the other end of the spectrum, there
                                                                            is a Power User. Unlike the rare guest, the power user deals with the
respective MPN on a regular basis. Due to the high level of know-                           Finally, the employees working in the internal Production
how both regarding the operating industry and the MPN structure,                        department of the company are looking for an MPN, which would
the power user is interested in a fast interaction and comparability of                 both contain information on the internal structure of the product and
different variants within this particular manufacturer, in order to                     have a high level of learnability. Their daily usage of the MPN
                                                                                        involves the identification of the required parts and their assembling
attain the optimal solution for a specific situation. Typically, power
                                                                                        sequence. With a highly specific background knowledge and fast
users are established via long-term cooperation between companies
                                                                                        production processes, production employees would appreciate a
and would be interested in a high learnability of the MPN. Moreover,                    digital MPN only if it can assure a low error rate and not obstruct or
they personally would even get averse to switch to a purely machine-                    slow them down in their daily activities.
readable MPN, since this would make their own know-how obsolete.
    The last external stakeholder of the MPN we consider is the
Purchasing department, who already has a particular product                             5          CONCLUSION AND OUTLOOK
configuration in mind. Similar to the rare guest, the purchasing                        With the increasing customer demands for individualization and an
department has little interest in the product itself (or its                            overall growing complexity of B2B products, part manufacturers are
configuration), but mostly focuses on getting the best price and most                   facing new problems of communicating their product variety in a
suitable delivery time. In addition, due to the overall desire for                      transparent and efficient way. In this context, MPNs are used as
comparability across different manufacturers, the purchasing                            codifications of those characteristics that uniquely identify a product
department seeks understandability and simplicity of the MPN and,                       variant out of a modular system, thus acting both as an identifier and
if possible, the establishment of an industry-wide standard.                            a description. While academia has not yet devoted enough attention
    Apart from the customer-driven requirements towards the MPN,                        to the topic of MPN, we believe that a correct deployment of the
manufacturer’s internal departments have their own, often                               MPN is a key step to efficient variant management. Therefore, in
contradictory expectations. For example, the Sales department uses                      this publication, we analyzed the main systemic and cognitive
MPN for selling, searching, and configuring product variants in a                       aspects of the MPN and derived evaluation criteria (i.e. readability,
simple and quick manner. Similar to the purchasing department of                        learnability, and processing speed) for its mapping on the underlying
the customer, the internal sales department seeks a practical and                       product structure. We then mapped these evaluation criteria on
catchy MPN structure, which can be used for the external                                various use cases of the internal and external stakeholders, thus
representation of a large quantity of (homogeneous) products. With                      showing that there exists no ideal MPN, but instead it should be
the level of know-how varying according to the position and the                         created depending on the respective application scenario.
seniority of the sales employees, the efficiency of the sales                                This publication also highlights important topics for future
department is dependent either on the learnability of the human-                        research endeavors. First, despite a detailed analysis of the existing
readable MPN or on the increase of the processing speed due to its                      literature on manufacturing complexity combined with personal
digitalization.                                                                         project experience of the authors, we believe that there exist
                                                                                        additional aspects of the MPN and the product structure. Similarly,

                                                    Table 1. Various use cases regarding the deployment of MPNs
                                                                External                                                 Internal
                          Role         Rare Guest             Power User            Purchasing               Sales           Production / Logistics
                          Goal        Identification,        Identification,        Acquisition,        Sale, searching,        Overview of the
                                        searching,             searching,              reorder           configuration         internal structure
                                      configuration          configuration
 Use case description




                        Use Case      Solution of an     Finding an optimal       Best price and          Suitable product,     Fast identification of
                                       application          variant for a         delivery time            possible large      the required parts and
                                        problem           specific situation                                  quantity         their assembling. Low
                                                                                                                                      error rate
                         Know-      Low background        High background       Little interest in the   Diverse (internal        High background
                          How         knowledge              knowledge                 product           vs. external sales,     knowledge (highly
                                                                                                             seniority)                specific)
                        Desired     Description of the    Fast interaction,       Comparability           Same description        Fast transfer (e.g.,
                        Solution      problem, not        comparability of       across different        of the homogenous      location of a product
                                     technical detail       the variants          manufacturers                products                  part)
                         Read-      No preferences, as   Human-understan-       Type of readability        Catchy type and     Human-understandable
                         ability        long as it       dable (without any        that enables           structure that can   (without any auxiliary
                                     functions right      auxiliary means)           supplier                 be used for               means)
 MPN requirements




                                                                                  comparability               marketing
                         Learn-     Not needed, since     High expectations     Not needed, since        High expectations        High expectations
                         ability    no intentions for    towards the logic of    no intentions for        towards the logic      towards the logic of
                                          reuse           the MPN structure            reuse                 of the MPN           the MPN structure
                                                                                                               structure
                         Process-   No preferences, as      Crucial to the          Preference                Preference            Crucial to the
                        ing speed       long as it        efficiency of their   direction machine-       direction machine-       efficiency of their
                                     functions right       everyday work          readable MPN              readable MPN           everyday work
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