Cost of Not Maintaining a Product Configuration System

Abstract

This article investigates the cost implications of using a not sufficiently maintained product configuration system (PCS). A case study is conducted to investigate the financial loss due to poor data quality in products sold through a not-maintained PCS. We calculated the financial loss by comparing the quotations generated by the not-maintained PCS and the quotations for the same product when the PCS was updated. The results indicate that the company has been selling the products with a miscalculated 20% lower cost than the actual one. Comparing this financial loss to the cost required to keep the PCS up-to-date, we show that the former is significantly higher than the latter. The research concludes that the realized success and benefits of utilizing a PCS are related to its maintenance and data quality.206 Rasmussen et al. IJIEM section 3 presents the research method and introduces the case company. Section 4 presents the results and answers the research questions. Section 5 discusses the results and concludes.

On Multi-Disciplinary Optimization in Engineer-to-Order Product Configuration

“…Although configuration systems have been shown to deliver highly valuable benefits, they are of course themselves associated with chal-lenges (Kristjansdottir et al 2018) and even failures (Haug, Shafiee, et al 2019). It is also clear that they must be regularly maintained to retain their advantages (Rasmussen et al 2018). Thus, just like other DA systems (Poorkiany 2015), they must be designed in ways that support their maintenance.…”

Design Automation Systems for the Product Development Process: Reflections from Five Industrial Case Studies

“…For this, product configuration systems (PCS) are central enablers for mass customization (Hvam et al, 2008). PCSs has been shown to give positive returns on investment (Kristjansdottir et al, 2018), even considering their maintenance activities (Rasmussen et al, 2018). On the production side, additive manufacturing (AM) is a way to increase the customization level (Wiberg et al, 2019).…”

The costs and benefits of multistage configuration: A framework and case study

“…The sales-related benefits concern the development of abilities to produce quotes faster, improved customer communication and improved quote accuracy. The benefits described in the literature include the following:  improved cost calculation accuracy (Myrodia, Kristjansdottir, & Hvam, 2017;Rasmussen, Hvam, & Mortensen, 2017;Yu & Skovgaard, 1998),  improved product specification quality (Forza & Salvador, 2002a;Forza, Trentin, & Salvador, 2006;Haug et al, 2011;Heatley, Agarwal, & Tanniru, 1995;Heiskala, Paloheimo, & Tiihonen, 2005;Hvam et al, 2013;Hvam, Malis, Hansen, & Riis, 2004;Hvam et al, 2008;Sviokla, 1990;Trentin et al, 2012;Yu & Skovgaard, 1998),  improved manufacturing specification quality (Haug et al, 2011),  increased product standardisation and measurement (Huang, Simpson, & Pine, 2005;Hvam et al, 2013;Meyer & Lehnerd, 1997),  reduced man-hours in the specification processes (Aldanondo, Rougé, & Véron, 2000;Ardissono et al, 2003;Barker, O'Connor, Bachant, & Soloway, 1989;Forza & Salvador, 2002a;Forza et al, 2006;Haug et al, 2011;Heatley et al, 1995;Heiskala, Tihonen, Paloheimo, & Soininen, 2007;Heiskalaet al, 2005;Hvam, 2006aHvam, , 2006bHvam et al, 2013Hvam et al, , 2004Petersen, 2007;Sviokla, 1990;Tiihonen, Soininen, Männistö, & Sulonen, 1996),  increased profitability of customer orders (Haug et al, 2019b;…”