Conference paper
A study of cost implications from not maintaining a PCS
Engineering Design and Product Development, Department of Mechanical Engineering, Technical University of Denmark1
Department of Mechanical Engineering, Technical University of Denmark2
Operations Management, Management Science, Department of Management Engineering, Technical University of Denmark3
Management Science, Department of Management Engineering, Technical University of Denmark4
Department of Management Engineering, Technical University of Denmark5
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.
| Language: | English |
|---|---|
| Year: | 2018 |
| Proceedings: | 8th International Conference on Mass Customization and Personalization |
| Types: | Conference paper |
| ORCIDs: | Rasmussen, Jeppe Bredahl , Myrodia, Anna , Hvam, Lars and Mortensen, Niels Henrik |
