Quantification of Benefits and Cost from Applying a Product Configuration System

This article aims at analyzing the long-term benefits and the cost from developing, implementing and maintaining product configuration systems (PCSs). The results presented indicate that over 5 years period a case company has achieved significant savings as a result to reduced workload of generating the products’ specifications. In addition the lead-time for generating products’ specifications has been reduced and indications of improved quality of the products’ specifications and additional sales are identified. The research verifies the benefits described in the current literature and contributes by linking the benefits to the direct cost savings companies can expect from utilizing PCSs.