Configure-to-Order & Product Configuration worked example

Product Option Rationalization Savings at 110% share of savings counted: a worked example

Push share of savings counted up to 110% and the picture changes. This example computes every intermediate figure at that operating point. building a business case to simplify the option portfolio

The inputs for this scenario

  • Options removed or standardized: 36 options (unchanged)
  • Annual savings per option rationalized: 4,200 $ / option (unchanged)
  • Share of savings counted (realization scope): 110 % (raised for this scenario; the documented default is 100)
  • Fixed program savings or one-time cost offset: 7,500 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable product option rationalization savings = options removed or standardized × annual savings per option rationalized × rationalization savings scope included) to the inputs above produces each figure below.
  • At this operating point the engine returns 173,820 $ for total product option rationalization savings, the number this scenario is built around.
  • At this operating point the engine returns 4,828 $ / piece for product option rationalization savings per configured unit or quote.
  • At this operating point the engine returns 166,320 $ for variable product option rationalization savings.
  • At this operating point the engine returns 7,500 $ for fixed rationalization program savings or cost offset.

How this compares with the baseline

  • Against the tool's baseline example, where share of savings counted sits at 100% and the headline result is 158,700 $, this scenario comes in 9.53% above the baseline at 173,820 $.
  • It computes total annual savings from rationalizing product options plus the per-configured-unit savings, combining per-option savings with a one-time program offset. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • total product option rationalization savings: 173,820 $ (headline result)
  • product option rationalization savings per configured unit or quote: 4,828 $ / piece
  • variable product option rationalization savings: 166,320 $
  • fixed rationalization program savings or cost offset: 7,500 $

Run it with your numbers

  • Every input above is editable in the live Product Option Rationalization Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.