Abstract
Original language | English |
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Title of host publication | Proceedings of the 17th International Configuration Workshop |
Editors | Juha Tiihonen, Andreas Falkner, Tomas Axling |
Publisher | University of Helsinki |
Publication date | 2015 |
Pages | 11-17 |
Publication status | Published - 2015 |
Event | 17th International Configuration Workshop - Vienna, Austria Duration: 10 Sep 2015 → 11 Sep 2015 Conference number: 17 |
Conference
Conference | 17th International Configuration Workshop |
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Number | 17 |
Country | Austria |
City | Vienna |
Period | 10/09/2015 → 11/09/2015 |
Series | CEUR Workshop Proceedings |
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ISSN | 1613-0073 |
Cite this
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Impact on cost accuracy and profitability from implementing product configuration system – A case-study. / Myrodia, Anna; Kristjansdottir, Katrin; Hvam, Lars.
Proceedings of the 17th International Configuration Workshop. ed. / Juha Tiihonen; Andreas Falkner; Tomas Axling. University of Helsinki, 2015. p. 11-17 (CEUR Workshop Proceedings).Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research › peer-review
TY - GEN
T1 - Impact on cost accuracy and profitability from implementing product configuration system – A case-study
AU - Myrodia, Anna
AU - Kristjansdottir, Katrin
AU - Hvam, Lars
PY - 2015
Y1 - 2015
N2 - This article aims at analyzing the impacts from implementing a product configuration system (PCS) on company profitability and improved cost estimations in the sales phase. Companies that have implemented PCSs have achieved substantial benefits in terms of being more in control of their product assortment, making the right decisions in the sales phase and increased sales of optimal products. Those benefits should have direct impact on improved profitability in terms of increased contribution ratios and more accurate cost estimations used to determine the price in the budgetary quotations. As the literature describes, there are various benefits from implementing a PCS, however the effects on the company’s profitability have not been discussed in details. This study analyzes the impact from implementing a PCS on the accuracy of calculations in the quotations and the impact on the relative contribution ratios. For that reason, a configure-to-order (CTO) manufacturing company has been investigated. A longitudinal study is performed where both the accuracy of the cost calculations and the profitability is analyzed before and after implementation of a PCS. The comparison reveals increased profitability and accuracy of the cost estimation in the sales phase can be achieved from implementing a PCS.
AB - This article aims at analyzing the impacts from implementing a product configuration system (PCS) on company profitability and improved cost estimations in the sales phase. Companies that have implemented PCSs have achieved substantial benefits in terms of being more in control of their product assortment, making the right decisions in the sales phase and increased sales of optimal products. Those benefits should have direct impact on improved profitability in terms of increased contribution ratios and more accurate cost estimations used to determine the price in the budgetary quotations. As the literature describes, there are various benefits from implementing a PCS, however the effects on the company’s profitability have not been discussed in details. This study analyzes the impact from implementing a PCS on the accuracy of calculations in the quotations and the impact on the relative contribution ratios. For that reason, a configure-to-order (CTO) manufacturing company has been investigated. A longitudinal study is performed where both the accuracy of the cost calculations and the profitability is analyzed before and after implementation of a PCS. The comparison reveals increased profitability and accuracy of the cost estimation in the sales phase can be achieved from implementing a PCS.
M3 - Article in proceedings
SP - 11
EP - 17
BT - Proceedings of the 17th International Configuration Workshop
A2 - Tiihonen, Juha
A2 - Falkner, Andreas
A2 - Axling, Tomas
PB - University of Helsinki
ER -