Systems Engineering Principles to Enable Supplier-Led Solutions

Abstract

This paper explores how the oil and gas industry has applied systems engineering and lean product development principles to develop a Configure-to-Order strategy and enable supplier-led solutions. The purpose has been to enable shorter time to delivedy and lower cost. We have developed a life-cycle model for customer and supplier needs. Our model from the subsea industry is based primarily on own experience and needs to be further explored and validated. The paper also exemplifies challenges connected to a successful implementation of a Configure-to-Order strategy. There are three essential elements. The first element is that customers must communicate functional requirements with associated performance requirements. The second is that engineers must consider modularity during product design. And, the third is that supplier gets access to relevant operational data in a way that does not harm the customer. The principle of respecting both customer and supplier need and viewpoints is a key to success when it comes to supplier-led solutions.