Cost of not maintaining a product configuration system

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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 languageEnglish
JournalInternational Journal of Industrial Engineering and Management
Issue number4
Pages (from-to)205-214
Publication statusPublished - 2018
CitationsWeb of Science® Times Cited: No match on DOI

    Research areas

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

ID: 169851729