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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 ,
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
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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%.

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

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