Abstract
This article investigates the cost implications of using a not sufficiently maintained product configuration system (PCS). A case study is conducted to investigate the financial loss due to poor data quality in products sold through a not-maintained PCS. We calculated the financial loss by comparing the quotations generated by the not-maintained PCS and the quotations for the same product when the PCS was updated. The results indicate that the company has been selling the products with a miscalculated 20% lower cost than the actual one. Comparing this financial loss to the cost required to keep the PCS up-to-date, we show that the former is significantly higher than the latter. The research concludes that the realized success and benefits of utilizing a PCS are related to its maintenance and data quality.
Original language | English |
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Journal | International Journal of Industrial Engineering and Management |
Volume | 9 |
Issue number | 4 |
Pages (from-to) | 205-214 |
ISSN | 2217-2661 |
DOIs | |
Publication status | Published - 2018 |
Keywords
- Product configuration system
- Cost calculation accuracy
- Benefits of product configuration systems
- Challenges of product configuration systems
- Case study