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The impact of product configurators on lead times in engineering-oriented companies

Published online by Cambridge University Press:  20 April 2011

Anders Haug
Affiliation:
Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Kolding, Denmark
Lars Hvam
Affiliation:
Department of Management Engineering, Technical University of Denmark, Lyngby, Denmark
Niels Henrik Mortensen
Affiliation:
Department of Management, Technical University of Denmark, Lyngby, Denmark
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Abstract

This paper presents a study of how the use of product configurators affects business processes of engineering-oriented companies. A literature study shows that only a minor part of product configuration research deals with the effects of product configuration, and that the ones that do are mostly vague when reporting the effects of configurator projects. Only six cases were identified, which provide estimates of the actual size of lead time reduction achieved from product configurators. To broaden this knowledge, this paper presents the results of a study of 14 companies concerning the impact of product configurators on business processes related to the creation of quotes and detailed product specifications. The study documents impressive results of the application of configurator technology. For example, in the data retrieved the use of configurators was estimated to have implied up to a 99.9% reduction of the quotation lead time with an average estimated reduction of 85.5%.

Information

Type
Special Issue Articles
Copyright
Copyright © Cambridge University Press 2011
Figure 0

Fig. 1. The benefits realized from configurator projects (Pedersen & Edwards, 2004). [A color version of this figure can be viewed online at journals.cambridge.org/aie]

Figure 1

Table 1. Literature with quantified estimates of lead time reductions

Figure 2

Fig. 2. The order penetration point (OPP; Olhager, 2003).

Figure 3

Fig. 3. Engineering-oriented customizers' processes. ETO, engineer-to-order companies; ATO, assembly-to-order companies; MTO, make-to-order companies; RFQ, request for quotation.

Figure 4

Fig. 4. The main configurator output types.

Figure 5

Fig. 5. The quotation process.

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Table 2. Background information

Figure 7

Table 3. Effects of the process duration on the quotation process

Figure 8

Table 4. Effects on the quotation process in man-hours

Figure 9

Table 5. Effects on the process of creating product specifications for manufacturing