Identification of Profitable Areas to Apply Product Configuration Systems in Engineer-To-Order Companies

Katrin Kristjansdottir (), Lars Hvam (), Sara Shafiee () and Martin Bonev ()
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Katrin Kristjansdottir: Technical University of Denmark
Lars Hvam: Technical University of Denmark
Sara Shafiee: Technical University of Denmark
Martin Bonev: Technical University of Denmark

Chapter Chapter 27 in Managing Complexity, 2017, pp 335-350 from Springer

Abstract: Abstract This chapter suggests a systematic framework for identifying potential areas, where Engineer-To-Order (ETO) companies may increase their profitability by implementing a Product Configuration Systems (PCSs). In order to do so, a three-step framework is proposed based on literature. The starting point is to conduct a profitability analysis to determine the accuracy of the cost estimations, and based on that the reason for the deviations across different projects is found. The next step is to generate the scope for different scenarios that aim to improve the current situation. Finally, it is suggested to make a cost-benefit analysis for different scenarios to determine where a PCS can provide the most benefits. This chapter is supplemented with a case study from an ETO company where potential areas for using PCS were found by applying the suggested framework.

Keywords: Product configuration system (PCS); Profitability analysis; Engineer-To-Order (ETO) companies (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-29058-4_27

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DOI: 10.1007/978-3-319-29058-4_27

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