The impact of product configurators on lead times in engineering-oriented companies

Abstract

This paper presents a study of how the use of product configurators affects business processes of engineering-oriented companies. A literature study shows that only a minor part of product configuration research deals with the effects of product configuration, and that the ones that do are mostly vague when reporting the effects of configurator projects. Only six cases were identified, which provide estimates of the actual size of lead time reduction achieved from product configurators. To broaden this knowledge, this paper presents the results of a study of 14 companies concerning the impact of product configurators on business processes related to the creation of quotes and detailed product specifications. The study documents impressive results of the application of configurator technology. For example, in the data retrieved the use of configurators was estimated to have implied up to a 99.9% reduction of the quotation lead time with an average estimated reduction of 85.5%.

Development and implementation strategy for the of product configuration systems in engineer-to-order companies

“…In ETO companies, the configuration process is more complex than in ATO companies due to a less defined solution space [3]. Therefore, PCSs in ETO companies are normally used for design on a high level of abstraction, as it can be extremely time consuming to define the solution space on a more detailed level [14]. This is opposite to ATO companies, where there is a more defined solution space for different product configurations, which enables detailed designs to be generated in the sales phase [1].…”

“…Furthermore, the information available in the sales phase can be limited, which increases uncertainties. As a result to complex nature of ETO companies, PCSs are often used for a design on a high level of abstraction, as a result of it being too time consuming to define the solution space on a more detailed level [12]. Finally, PCSs are typically used to support a specific part of the sales and engineering processes or a subset of the product family due to the complexity of processes and products.…”

Utilizing product configuration systems for supporting the critical parts of the engineering processes

“…Due to the fact that the products are often large and complex systems, where the products are custom designed for each customer, the sales process is much more intensive in ETO companies [5]. Haug et al [7] describe products in ETO companies in turns of where a design is made on a high level of abstraction in the sales phase and a detailed design is carried out after the customer has accepted the quotation. Examples from the literature support that normally PCSs are only used for a design on a high level of abstraction in ETO companies, because it is extremely time consuming to define the solution space on a detailed level [7].…”

“…Haug et al [7] describe products in ETO companies in turns of where a design is made on a high level of abstraction in the sales phase and a detailed design is carried out after the customer has accepted the quotation. Examples from the literature support that normally PCSs are only used for a design on a high level of abstraction in ETO companies, because it is extremely time consuming to define the solution space on a detailed level [7]. Paunu and Mäkipää [8] acknowledge that design configurators can be used to automate the engineering order process and thereby decreasing the lead-time for product quotations and moving ETO companies closer towards mass customization.…”

Using a Configuration System to Design Toilets and Place Installation Shafts

“…in ERP systems like SAP or Microsoft Axapta, or specialized configurators like Tacton Configurator or Configit Product Modeler, to 3D CAD/BIM software like Auto Desk's Revit or Graphisoft's ArchiCAD, to game technology like Adobe ® Flash (see [31]), which provides another example of the development and use of graphic configuration systems. Choice of software type is based on the software types used by members of the Association for Product Modelling in Denmark [32] and an investigation of the benefits that firms have received from using configuration [33].…”