A study of cost implications from not maintaining a PCS

Jeppe Bredahl Rasmussen, Anna Myrodia, Lars Hvam, Niels Henrik Mortensen

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    Abstract

    This article is a case study investigating the cost implications of using a Product Configuration System (PCS) that was not sufficiently maintained. It presents a case study that demonstrates and quantify the potential financial loss of relying on a PCS to generate quotations without sufficient focus on updating and correcting the cost data and product offerings. The study finds that comparing quotations made from a not-maintained PCS, with recalculations of the same projects in a newer updated PCS that the company in a period of one year in average miscalculated the costs too be 20% lower than the real costs. We concluded that the cost of not maintaining a PCS can be far higher than the costs to update and maintain the system and furthermore that the success of PCS reported in the literature might not be consistent for long time of use of PCS if the systems are not properly maintained.
    Original languageEnglish
    Publication date2018
    Number of pages10
    Publication statusPublished - 2018
    Event8th International Conference on Mass Customization and Personalization - Novi Sad, Serbia
    Duration: 19 Sep 201821 Sep 2018

    Conference

    Conference8th International Conference on Mass Customization and Personalization
    Country/TerritorySerbia
    CityNovi Sad
    Period19/09/201821/09/2018

    Keywords

    • Product configuration system
    • Cost calculation accuracy
    • Benefits of product configuration systems
    • Challenges of product configuration systems
    • Case study

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