Title: Improving the quotation process: a lean case study at a job shop

Authors: Adolfo Rayon; Purushothaman Damodaran; Omar Ghrayeb

Addresses: UTC Aerospace Systems, Rockford, IL, USA ' Department of Industrial and Systems Engineering, Northern Illinois University, DeKalb, IL 60115, USA ' Department of Industrial and Systems Engineering, Northern Illinois University, DeKalb, IL 60115, USA

Abstract: This study was conducted at a job-shop fabricating parts for the fastener industry. Due to stiff competition, the job-shop had two days to respond to all customer requests for quote. The current quotation process was repeatedly tardy. Consequently, they lost goodwill of several existing customers and failed to grow their customer base. This study thoroughly analysed the existing quotation process, recommended and implemented changes which resulted in shorter lead-times. A process flow diagram (PFD) was developed through interviews and shadowing the quote personnel. Analysing the PFD helped to identify and eliminate some of the non-value-added tasks, resulting in shorter lead-time. Using a clustering algorithm, part families and a quote template for each family was formed. Templates facilitated standardisation of the quoting process, and helped to cross-train estimators. As a result of this study the number of lines quoted per month increased significantly; resulting in higher quote win percentage.

Keywords: quotation process; quotation requests; clustering algorithms; job shops; lean thinking; process flow diagram; continuous improvement; process improvement; value stream maps; cross-training; lead times; part families; quote templates.

DOI: 10.1504/IJRAPIDM.2013.055966

International Journal of Rapid Manufacturing, 2013 Vol.3 No.4, pp.248 - 265

Received: 12 Mar 2012
Accepted: 12 Mar 2013
Published online: 30 Sep 2014 *

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