Product Configuration Management

BACKGROUND

In preparation for the implementation of a new ERP/PLM system designed to standardize its configuration management practices, our client wishes to conduct an assessment of its current practices.
IAC has been commissioned to evaluate these practices, measure their impact on the business, and develop a roadmap to mitigate these impacts.

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THE IAC APPROACH

Current Status

• Assessment and identification of pain points in configuration management at our client’s organization through more than 20 cross-functional internal interviews,
• Benchmarking and analysis of practices and problems,
• Conducting root cause analyses based on a comprehensive analysis of data covering various functions and practices.

Summary of Maturity Discrepancies

• Identification of strengths and areas for improvement through the creation of a maturity gap matrix with 5 axes and 15 checkpoints.

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RESULTS

Assessment of impacts on the P&L: tied-up inventory (€14 million), customer penalties (€0.25 million), administrative overhead (€5 million), and delayed revenue (€3.8 million).

Development of a two-year roadmap with six priority initiatives to strengthen configuration management at our client’s organization across all functions.

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