Designing a fixed cost model for aftermarket at a surveillace company
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Typ
Examensarbete för masterexamen
Program
Quality and operations management (MPQOM), MSc
Publicerad
2020
Författare
Almér, Lovisa
Göthberg, Hugo
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Introduction - For companies in general, Aftermarket is an important business area for
achieving longtime success. The Case Company, where the thesis was conducted at,
desired to improve their operations within their Aftermarket division. The Repair Process
at The Case Company is time-consuming and complex with their current way of operating.
The lead times are affected due to the following four aspects; products, customers, subcontractors,
and in-house operations.
Aim - The aim of the thesis consisted of fulfilling three parts; (1) an analysis of all costs
related to establishing quotation, (2) defining a fixed cost model for Aftermarket, and (3)
suggesting an implementation of such a fixed cost model.
Methods - To obtain the best result, a mixed-method approach, combining qualitative and
quantitative methods, was used during the thesis. Several interviews were conducted to
receive information regarding how quotations are established. Regarding the fixed cost
model, interviews, focus groups, observations and a Beta Distribution Estimation was
used to develop the model. As a complement to the various methods a literature review
was conducted, and for the implementation of the model it can be regarded as the primary
source for the evolution of the process. Further, ethical considerations were an important
aspect of the thesis since The Case Company operates within the military field.
Results - Found was that a quotation, with the current process, consists of four parts;
Fault Verification Process & Shipment, Reparation In-House, Fault verification Process
for Sub-Contractors, and Reparation Sub-Contractor. The fixed cost model was developed
with the help of a Process Information Database. The implementation process that was
established for the fixed cost model is based on an eighth step approach.
Conclusion - Overall, the empirical results demonstrate that The Case Company will
improve their efficiency in their after-sales service due to a more automatized quotation
process. The authors have encountered challenges that have slowed down the process of
constructing the fixed cost model. Despite that, the authors believe that the fixed cost
model, in a future state, will contribute to The Case Company’s longtime success.
Beskrivning
Ämne/nyckelord
Fixed cost model , Quotation , Aftermarket , Beta Distribution , Estimation, , Repair Process, , Reduced lead time, , Process Information Database (PID).