Make different Products with the same Components

The Baker's offer is diversified and becomes increasingly complex to produce…

The Baker would like to simplify his production to avoid errors and reduce his cost prices.

We can design Products that reuse the same Components: the same dough and cream to make both "religieuses" and chocolate eclairs. It simplifies and safeguards their production, while reducing costs at the same time.

The Baker separates 2 production groups: those who make the components (sweet dough or bread dough), and those who assemble the components to create the Products offered to customers ("religieuses" and eclairs).

The automobile industry is a good example of reusing Components to design new car Models (see the example of the Volkswagen platforms).

Automotive parts

The gains are considerable:

But this approach requires strong management. Designers of new Models seek to differentiate themselves and are not naturally led to reuse what already exists for the others.

It is therefore important to provide the means and power to those who build and distribute the components.

We find the same approach in the Operation Model.

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