Purchasing Management: The optimisation of product variance

Chrstian Uhl, Farhad Nabhani, Alireza Shokri, Florian Kauf

    Research output: Contribution to journalArticlepeer-review

    4 Citations (Scopus)
    6 Downloads (Pure)

    Abstract

    The purpose of this paper is to present a new optimised approach for product variance from the purchasing perspective. The research is based on a case study involving a global acting automotive Tier 1 supplier who produces steering systems for cars and commercial vehicles. The case study analysis the product variance of three components. The data were gathered from 116 variants, 13 sub suppliers for three different types of steering system. Time, money, quality and technology can be saved through a greater understanding of such product variances. The results of the case study lead to a generalised method to optimise the existing variance, present cost improvements as well as optimising new key performance indicators to manage product variance out of the purchasing department.
    Original languageEnglish
    Pages (from-to)1366-1374
    JournalProcedia Manufacturing
    Volume11
    Early online date18 Sept 2017
    DOIs
    Publication statusE-pub ahead of print - 18 Sept 2017

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