Managing product variety in quotation processes

Abstract

Purpose -Manufacturers across many sectors increasingly operate in high variety environments. Research evidence suggests that variety has a negative impact on performance. However, the research literature is limited on the enablers that allow variety to be managed effectively and efficiently at the "front-end" of an organisation and in quotation processes in particular.Design/methodology/approach -This paper presents case analysis of the quotation processes from manufacturers operating in high-variety environments. Qualitative process modelling tools have been developed to allow representation of process complexities and informal process elements.Findings -Findings are presented on generic mechanisms for absorbing and mitigating the impact of variety on quotation processes. A generic quotation process model is presented comprising four key decisions centres: customization request initiation and information gathering on customer needs, classification of requests, resource control, and identification of information for reuse.Practical implications -The implications of the study for the automation of quotation processes in high variety and mass customization environments are discussed and it is speculated that different decision centres will dominate in different environments.Originality/value -The generic model developed by this research offers insight into the functioning of the core process elements of the quotation system. Reviewing an organisation's structure and the information systems infrastructure supporting these decision centres should lead to the identification of potential system or reorganisation improvements.

Productisation: A review and research agenda

“…Moorman and Rust, 1999). Meeting customer demands and the resulting product proliferation are also discussed (e. g. Forza and Salvador, 2002;Zhang et al, 2005;Bramham et al, 2005). The elements products constitute are referred to in many articles (e.g.…”

Customer Enquiry Management in global supply chains: A comparative multi-case study analysis

“…The challenge of managing trade-offs and conflicting objectives has been studied by several authors, e.g., Crittenden, Gardiner, and Stam (1993) and Kate (1994) and formalization in supporting cross-functional coordination has been discussed by Javorsky and Kohli (1993) and Welker (2004). Of the few empirical studies that have addressed cross-functional coordination in non-MTS firms, those by Konijnendijk (1994), , Bramham, MacCarthy, &Guinery, 2005, Parente, Pegels, andNallan (2002) and Zorzini et al (2008) focus on industrial markets such as capital goods and are of particular relevance to this research. Konijnendijk (1994) explored the interdependence between sales and manufacturing in Engineer-To-Order (ETO) companies through a survey and case studies, proposing several coordination mechanisms.…”

“…The impact of contingency factors on the CEM process was considered by and Bramham et al (2005). Three main categories of factors (i.e., company characteristics, product features, and market features) were identified by , which can help to understand differences in terms of business processes (including CEM) and their relationships in non-MTS companies.…”

“…Three main categories of factors (i.e., company characteristics, product features, and market features) were identified by , which can help to understand differences in terms of business processes (including CEM) and their relationships in non-MTS companies. Bramham et al (2005) suggested that quotation processes differ in configuration depending on environmental characteristics, such as the degree of product complexity. Parente et al (2002) also adopted a contingency perspective, examining the causal effect of the interface between sales and manufacturing on customer satisfaction, but the authors only considered the mediating effect of the type of product (i.e., ETO and non-ETO).…”

“…Specifically, cross-functional coordination refers to the degree of integration among different actors at the customer enquiry stage (Bramham et al, 2005;Konijnendijk, 1994), while formalization describes the way in which coordination is achieved and the extent to which the procedures and rules adopted at the customer enquiry stage are defined (Choi & Hong, 2002;Mintzberg, 1979;Walsh & Dewar, 1987;Welker, 2004).…”