Variant management glossary:
The most important facts at a glance

Variant management is a powerful tool for managing the ever-growing product diversity while simultaneously meeting the individual needs of customers. But variant management also comes with its own technical language.

This glossary explains the most important terms related to variant management to help you get started in the world of individual product configuration.

Here you will learn the basics of variant configuration, the different approaches to variant management and the most important methods and tools.

With this knowledge, you are well equipped to master the challenges of variant management and reap the benefits for your company.

  • Relational knowledge
    Rule-based relationships with dependencies, conditions and procedures in the combination of characteristics and characteristic values. It defines which characteristic values are compatible with each other and which are mutually exclusive. This ensures that only sensible and technically feasible product variants can be configured.
  • CAD systems
    Computer-aided design (CAD) systems are used to design and develop products. The integration of variant management in CAD systems enables the automated generation of design drawings and 3D models for different product variants. Changes to the product structure or configuration rules can be updated directly in the CAD system, which saves a considerable amount of time and reduces errors.
  • Class
    A class is a structuring aid that links the characteristics and characteristic values of a configurable product to the material master as a link. A class usually has one or more characteristics. Different product properties can be defined within the class using characteristics and characteristic values.
  • Complexity management
    Complexity management deals with the control of complexity resulting from a high number of variants. Complexity management methods in variant management include, for example, the standardization of components, the modularization of products and the development of platform strategies. The aim is to reduce the number of variants and simplify processes without compromising flexibility and customer orientation.
  • Configurator
    A configurator is software that supports customers or sales employees in the selection and combination of features and feature values to define a specific product variant. Configurators visualize the configuration options, check the selection for validity based on the configuration rules and generate information such as parts lists, prices or delivery times for the selected variant.
  • Configuration model
    The configuration model depicts the structure and relationships of the characteristics and characteristic values of a product. It defines which characteristics can be combined with each other and which dependencies exist between them.
  • Configuration rules
    Configuration rules define the permitted combinations of features and feature values and ensure that only valid and technically feasible product variants can be configured.
  • Configurable product (KMat)
    A configurable product (KMat) is a material that is offered in different variants. It has a super BOM that contains all parts required for the production of all possible variants, as well as a super routing that includes all possible work steps. The configuration is used to select the parts and work steps required for the respective variant.
  • Cost management
    Variant diversity has a direct impact on costs. Effective cost management in variant management includes the analysis of cost factors that are influenced by variant diversity and the development of strategies for cost optimization. Cost optimization methods include, for example, the standardization of components, the modularization of products and value analysis.
  • Material
    A material is a clearly defined article that has a material master with specific characteristics and is designated with a material number. The material establishes a link to sales, materials management (purchasing and inventory management) as well as production planning and production control. Materials can be configurable products (so-called KMAT) or BOM materials, such as raw, semi-finished or finished materials. The terms configurable material and configurable product can be used synonymously.
  • Characteristic
    A characteristic describes a property of a configurable product. It can have different characteristics, which are represented by characteristic values.
  • Characteristic value
    A characteristic usually has one or more characteristic values. These are the specifications of a characteristic and represent the selection options for a characteristic during variant configuration. The characteristic value therefore records possible characteristics of a product that differentiate its properties at the characteristic level.
  • Modularization
    Modularization is a concept in which a product is broken down into independent modules. These modules can then be flexibly combined with each other to create different variants. Modularization enables a high number of variants while reducing complexity at the same time.
  • Nomenclature
    A nomenclature is a system for uniquely naming objects, e.g. materials, characteristics or documents. Consistent nomenclature is important in variant management to ensure clarity and avoid errors.
  • Platform strategy
    In a platform strategy, a common platform is developed for different product variants. The platform contains the basic functions and components that are used by all variants.
  • Product Lifecycle Management (PLM)
    PLM systems are used to manage all product-related data across the entire product lifecycle. They support variant management by centrally storing and managing product structures, parts lists, configuration rules and documents.
  • Product life cycle
    The product life cycle encompasses all phases of a product, from development to production, sales and service. Variant management influences all phases of the product life cycle:

    • Development: Definition of possible variants, determination of configuration rules.
    • Production: Planning and controlling production processes for different variants.
    • Sales: Creation of offers and configuration of products according to customer requirements.
    • Service: Provision of services for different variants.
  • Product structure
    A product structure forms a characteristic tree from the hierarchically arranged objects group, characteristics and characteristic values, which is similar to a design parts list with extended options for analyzing, structuring and documenting a product or assembly. It visualizes the product knowledge of products and components required in the configuration (product families, product views, product items and assembly groups as well as product variants, product item variants, assembly headers and assembly items).
  • Quality management
    Quality management in variant management includes all measures to ensure the quality of products with a high number of variants. This includes defining quality standards, carrying out tests and monitoring production processes.
  • Set of rules
    The set of rules includes all configuration rules that define the permitted combinations of characteristics and characteristic values. It ensures that only valid and technically feasible product variants can be configured.
  • Parts list
    The parts list describes all the individual parts of a configurable product with the quantities required to manufacture it. It specifies how many units of a certain individual part or assembly are required to produce the desired variants. It thus creates a functional link between material and characteristic for the quotation or production process.
  • Variant configuration
    Variant configuration is the process of selecting and combining characteristics and characteristic values to define a specific product variant.
  • Variant management
    Variant management is a strategic approach that aims to plan, control and optimize the variety of possible product variants across the entire product life cycle.
  • Variant planning
    Variant planning covers all activities that are necessary for planning and controlling the variety of variants in the company.
  • SAP LO-VC integration at SAE

SAE developed its own variant engine for the SAP variant management module called LO-VC. SAE makes SAP LO-VC web-enabled.

With this worldwide unique development, SAE is able to use all objects used by SAP in variant configuration outside the SAP world. SAE makes it possible to use the so-called KMat’s = configurable materials directly on your own website or in the SAE CPQ system to create quotations. All relevant characteristics and their characteristic values are read from SAP via classes for the configurable material and stored externally in the SAE database. The SAE variant engine for SAP also supports all objects for controlling the set of rules. SAE supports all rule objects such as preconditions, procedures and constraints. Multi-level configurations that are controlled via special sales BOMs are also processed error-free outside SAP in the SAE variant engine. The speed with which all rules are processed is breathtakingly fast. Another unique highlight is the offline application. This means that the sales employee can configure complex SAP variant modules on site at the customer’s premises without Internet access.

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