Development of additional indicators for quotation preparation performance management: VSM-based approach

Abstract

Purpose

The calculation of quotations has been proven to be an extremely challenging matter in customized manufacturing requirements. There are significant wastages, which are attributed to activities related to the quotation preparation process (QPP) and their influence on an offer of delivery time to a customer. Hence, the purpose of this paper is to develop a tailor-made value stream mapping (VSM) approach, combined with a set of performance indicators for QPP performance measurement and management, to decrease the lead time of QPP.

Design/methodology/approach

Current and future state value stream maps have been developed to measure the performance of QPP. To minimize the weaknesses of the cycle efficiency indicator, additional indicators, assessing improvements to value- and non-value-added activities, external interested parties’ influence on lead time, etc., have been developed for QPP performance management. To illustrate the usefulness of the proposed indicators, a case study has been performed.

Findings

Only when all appropriate indicators are calculated than we have the whole overview of the current and future state in a QPP.

Research limitations/implications

The proposed indicators were used only in one case study. If they are used in different case studies from different companies and operating in different industries, it will be possible to discover whether the presented indicators are enough to fully understand the analyzed process.

Practical implications

The proposed methodology is ready to be used in industry practice.

Originality/value

The presented VSM methodology, combined with a set of performance indicators for QPP, provides the originality of the work.

Citation

Stadnicka, D. and Ratnayake, R.M.C. (2018), "Development of additional indicators for quotation preparation performance management: VSM-based approach", Journal of Manufacturing Technology Management, Vol. 29 No. 5, pp. 866-885. https://doi.org/10.1108/JMTM-01-2017-0016