Hostname: page-component-8448b6f56d-cfpbc Total loading time: 0 Render date: 2024-04-17T18:14:14.391Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  20 April 2011

Anders Haug ,
Lars Hvam  and
Niels Henrik Mortensen
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
Get access Rights & Permissions [Opens in a new window]

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%.

Keywords

ConfiguratorLead TimesProcess ReengineeringProduct ConfigurationSales Configuration
Type
Special Issue Articles
Information
AI EDAM , Volume 25 , Issue 2: Configuration , May 2011 , pp. 197 - 206
Copyright
Copyright © Cambridge University Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Ardissono, L., Felfernig, A., Friedrich, G., Goy, A., Jannach, D., Petrone, G., Schäfer, R., & Zanker, M. (2003). A framework for the development of personalized, distributed web-based configuration systems. AI Magazine 24(3), 93–108.Google Scholar
Ariano, M., & Agnino, D. (1996). An intelligent order entry and dynamic bill of materials system for manufacturing customized furniture. Computers and Electrical Engineering 22(1), 45–60.CrossRefGoogle Scholar
Barker, V.E., O'Connor, D.E., Bachant, J., & Soloway, E. (1989). Expert systems for configuration at Digital: XCON and beyond. Communications of the ACM 32(3), 298–318.CrossRefGoogle Scholar
Blecker, T., Abdelkafi, N., Kreutler, G., & Friedrich, G. (2004). Product configuration systems: state of the art, conceptualization and extensions. Proc. 8th Maghrebian Conf. Software Engineering (MCSEAI 2004), pp. 25–36.Google Scholar
Edwards, K., Hvam, L., Pedersen, J.L., Møldrup, M., & Møller, N. (2005). Udvikling og implementering af konfigureringssystemer: Økonomi, Teknologi og Organisation [Final Report From PETO Research Project]. Lyngby, Denmark: Technical University of Denmark, Department of Manufacturing Engineering and Management.Google Scholar
Felfernig, A., Jannach, D., & Zanker, M. (2000). Contextual diagrams as structuring mechanisms for designing configuration knowledge bases in UML. In UML 2000—The Unified Modeling Language, Advancing the Standard, Int. Conf. (Kent, S., & Selic, B., Eds.), LNCS, Vol. 1939, pp. 240–254. Heidelberg: Springer.CrossRefGoogle Scholar
Fleischanderl, G., Friedrich, G., Haselböck, A., Schreiner, H., & Stumptner, M. (1998). Configuring large systems using generative constraint satisfaction. IEEE Intelligent Systems 13(4), 59–68.CrossRefGoogle Scholar
Forza, C., & Salvador, F. (2002 a). Managing for variety in the order acquisition and fulfilment process: the contribution of product configuration systems. International Journal of Production Economics 76(1), 87–98.CrossRefGoogle Scholar
Forza, C., & Salvador, F. (2002 b). Product configuration and inter-firm co-ordination: an innovative solution from a small manufacturing enterprise. Computers in Industry 49(1), 37–46.CrossRefGoogle Scholar
Forza, C., Trentin, A., & Salvador, F. (2006). Supporting product configuration and form postponement by grouping components into kits: the case of MarelliMotori. International Journal of Mass Customization 1(4), 427–444.CrossRefGoogle Scholar
Haug, A., Ladeby, K., & Edwards, K. (2009). From engineer-to-order to mass customization. Management Research News 32(7), 633–644.CrossRefGoogle Scholar
Heatley, J., Agraval, R., & Tanniru, M. (1995). An evaluation of an innovative information technology—the case of Carrier EXPERT. Journal of Strategic Information Systems 4(3), 255–277.CrossRefGoogle Scholar
Helo, P.T. (2006). Product configuration analysis with design structure matrix. Industrial Management & Data Systems 106(7), 997–1011.CrossRefGoogle Scholar
Hvam, L. (2004). A multi-perspective approach for the design of Product Configuration Systems—an evaluation of industry applications. Proc. Int. Conf. Economic, Technical and Organizational aspects of Product Configuration Systems (PETO), pp. 13–25.Google Scholar
Hvam, L. (2006 a). Mass customisation of process plants. International Journal of Mass Customisation 1(4), 445–462.CrossRefGoogle Scholar
Hvam, L. (2006 b). Mass customisation in the electronics industry based on modular products and product configuration. International Journal of Mass Customisation 1(4), 410–426.CrossRefGoogle Scholar
Hvam, L., Malis, M., Hansen, B., & Riis, J. (2004). Reengineering of the quotation process—application of knowledge based systems. Business Process Management Journal 10(2), 200–213.CrossRefGoogle Scholar
Hvam, L., Mortensen, N.H., & Riis, J. (2008). Product Customization. Berlin: Springer–Verlag.Google Scholar
Hvam, L., Pape, S., & Nielsen, M.K. (2006). Improving the quotation process with product configuration. Computers in Industry 57(7), 607–621.CrossRefGoogle Scholar
Hvam, L., Riis, J., & Malis, M. (2002). A multi-perspective approach for the design of configuration systems. Proc. 15th European Conf. Artificial Intelligence. Accessed at www.produktmodeller.dkGoogle Scholar
Hong, G., Hu, L., Xue, D., Tu, Y.L., & Xiong, Y.L. (2008). Identification of the optimal product configuration and parameters based on individual customer requirements on performance and costs in one-of-a-kind production. International Journal of Production Research 46(2), 3297–3326.CrossRefGoogle Scholar
Ladeby, K.R. (2009). Applying product configuration systems in engineering companies: motivations and barriers for configuration projects. PhD Thesis. Technical University of Denmark, Department of Management Engineering and Operations Management.Google Scholar
Olhager, J. (2003). Strategic positioning of the order penetration point. International Journal of Production Economics 85(3), 319–329.CrossRefGoogle Scholar
Pedersen, J.L., & Edwards, K. (2004). Product configuration systems and productivity. Proc. Int. Conf. Economic, Technical and Organizational Aspects of Product Configuration Systems (PETO), pp. 165–176.Google Scholar
Petersen, T.D., Jorgensen, K.A., Hvolby, H.H., & Nielsen, J.A. (2007). Multi level configuration of ETO products. Proc. 4th Int. Conf. Product Lifecycle Management: Assessing the Industrial Relevance, pp. 293–302.Google Scholar
Piller, F.T., Moeslein, K., & Stotko, C.M. (2004). Does mass customization pay? An economic approach to evaluate customer integration. Production Planning & Control 15(4), 435–444.CrossRefGoogle Scholar
Raatikainen, M., Soininen, T., Männistö, T., & Matilla, A. (2004). A case study of two configurable software product families. In Software Product-Family Engineering, 5th Int. Workshop, PFE 2003 (van der Linden, F., Ed.), LNCS, Vol. 3014, pp. 403–421. New York: Springer–Verlag.Google Scholar
Sabin, D., & Weigel, R. (1998). Product configuration frameworks—a survey. IEEE Intelligent Systems and Their Applications 13(4), 42–49.CrossRefGoogle Scholar
Stumptner, M. (1997). An overview of knowledge-based configuration. AI Communications 10(2), 111–126.Google Scholar