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

Author(s):  
Anders Haug ◽  
Lars Hvam ◽  
Niels Henrik Mortensen

AbstractThis 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%.


2017 ◽  
Vol 8 (2) ◽  
pp. 30-40 ◽  
Author(s):  
Peter Nielsen ◽  
Zbigniew Michna ◽  
Brian Bruhn Sørensen ◽  
Ngoc Do Anh Dung

AbstractLead times and their nature have received limited interest in literature despite their large impact on the performance and the management of supply chains. This paper presents a method and a case implementation of the same, to establish the behavior of real lead times in supply chains. The paper explores the behavior of lead times and illustrates how in one particular case they can and should be considered to be independent and identically distributed (i.i.d.). The conclusion is also that the stochastic nature of the lead times contributes more to lead time demand variance than demand variance.





2011 ◽  
Vol 211 (2) ◽  
pp. 274-281 ◽  
Author(s):  
Jack C. Hayya ◽  
Terry P. Harrison ◽  
X. James He


2019 ◽  
Vol 26 (4) ◽  
pp. 1194-1209 ◽  
Author(s):  
Augusto Bianchini ◽  
Andrea Benci ◽  
Marco Pellegrini ◽  
Jessica Rossi

Purpose The purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small company, leader in the production of street lamps. The model is applied to identify critical supply chains with the final objective of lead-time reduction. Design/methodology/approach The model is obtained by the application of the purchasing portfolio analysis through the construction of Kraljic matrix. Profit impact and supply risk criteria are selected according to the main company requirements, and then prioritized by the analytical hierarchy process (AHP). Finally, supply chain lead-times are analyzed with Gantt diagrams. Findings The application of the model allows the determination of company criticalities in terms of high lead-times and of the involved suppliers. The analysis of critical suppliers positioning in the Kraljic matrix allows the definition of some possible strategies to implement for lead-time reduction. Research limitations/implications Purchasing portfolio analysis and Kraljic matrix are practical instruments to quickly frame company purchasing situation, but their application is not simple due to the numerous and different factors involved, especially in small and medium enterprises (SMEs), where resource are scarce and several constraints limit operations. The objective of the research is the development of a practical tool for strategic purchasing, simple and robust to be implemented in SMEs, with limited resources and access to quantitative supplier data. Originality/value Evaluation criteria definition is one of the most difficult phases, such as their univocal and quantitative comparison. The problem of selecting and prioritizing both quantitative and qualitative criteria for suppliers classification is overcome with the combined application of Kraljic matrix and AHP. The newly integration of the two methodologies allows the realization of a reliable and robust model for suppliers classification, which can be easily adapted to company business strategy changes.



2021 ◽  
Author(s):  
Bo Christiansen ◽  
Shuting Yang ◽  
Dominic Matte

<p>We study the decadal predictability in the North Atlantic region using  ensembles of historical and decadal prediction experiments with EC-Earth3  and other CMIP models. In particular, the focus is on the NAO and the sub-polar gyre region. In general the impact of initialization is weak  for lead-times larger than one to two years and we investigate different ways to isolate and estimate the statistical significance of this impact. For the sub-polar gyre region the prediction skill is found to be mainly due to an abrupt change in the late 90ies and models disagree on whether this skill is due to forcing or initial conditions. Also the predictability of the NAO is weak and varies with lead-time and length of the predicted period. We only see weak evidence of the 'signal-to-noise paradox'. The importance of the ensemble size is also studied.                                                              </p>



2011 ◽  
Vol 38 (2) ◽  
pp. 191-199 ◽  
Author(s):  
Chien-Ho Ko

On-time delivery is a key factor in the business success of precast fabricators. The greatest obstacle to achieving this goal is demand variability. The objective of this research is to develop a plan that continuously improves production control systems for precast fabrication. This plan involves a lead time estimation model (LTEM) and schedule adjustment principles. The LTEM is established to estimate the impact of demand variability. In the model, previous jobs are analyzed as indicators of customer behavior. Using the captured behavior, fabrication lead time can be estimated for forthcoming projects. Two principles are proposed to adjust the production schedule according to the estimated lead times. Two adjustment principles are designed to reduce the impact of demand variability: (1) start fabrication later relative to the required delivery dates and (2) shift production milestones backward to the end of the production process. The effectiveness of the developed improvement plan including LTEM and the adjustment principles were validated using a real precast fabricator. The proposed approach is one of the first studies to use historical data to estimate the impacts of demand variability based on customer behavior.





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