University of Twente Student Theses


Cost Price Calculator : recommendations on improving the quotation process

Greenan, M.A.T (2021) Cost Price Calculator : recommendations on improving the quotation process.

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Abstract:We intended to solve this problem by researching the following points: • Defining the current process. • The calculation method. • Documentation of the planner’s expertise. • Capabilities of other employees. This brought us to the following deliverables: Database Galvano Hengelo wanted to have the knowledge of the planner documented concerning the calculation of cost prices. Previously, all quotations were made by depending on the experience and insight of this one employee. The only data available in the quotation process was the outcomes of historical orders. Our analysis of these outcomes showed that borders could be drawn through size parameters which enable employees to make uniform calculations. Our research resulted in a database linked with a code where the border ranges are defined related to the number of products per charge for different shapes of products. Improvements on the general process The general process asked for some improvements. After defining the original process, the bottlenecks were determined. We critically assessed the path of the quotes. Since it moves through different departments the flow was not as efficient as it could be. It did not use the theory of a lean organization to a desirable extent. Crossing three departments with two of them twice caused smooth flows to be interrupted which created the question of building a tool where each department is crossed only once. Consequently, the idea of a calculator linked to the database came into existence. Calculator The company wanted us to take steps towards improving the general process, eliminating risk in the calculations, and unburdening the planner. By designing a calculator that is linked with the new database where knowledge of the planner is documented the calculations can be done by more employees than before. This creates the possibility of improving the process by removing delays. When a quote only moves through a department once, there is no queue and only one start up moment per employee. The situation where more staff members can do the calculations, the risk of losing the knowledge and experience in generating the cost price is reduced. Also, this unburdens the planner and gives him more time for his other expertise. Dashboard All calculations are done on the backend where a code generates the output. The input is entered on the frontend. This is a dashboard where the parameters of a customer’s request are noted and followed up by the cost and sales price. The frontend is designed in a way that only a select number of employees can adjust or improve the backend. A security is placed on the calculator and only 2 staff members have the password. The dashboard is available for all employees such that they can use the calculator without any risk. Especially for those unfamiliar with excel it is essential that they do not get stuck with unwanted adjustments. iv Advisory report We build the calculator but unfortunately, we could not be present during the implementation period. We have the following recommendations for the company: • Educate employees in the quotation process. • Start using the calculator as addition to the process. • Keep improving the calculator by adding more shapes and possibly define new shapes. • Acquire a STEP file reader. • Link the reader to the ERP system. • Acquire a simulator that reads the technical drawings.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
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