Configure-to-Order & Product Configuration worked example

Product Option Rationalization Savings at 72% share of savings counted: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop share of savings counted to 72%, then walk the calculation through step by step. Estimate savings from removing, bundling, or standardizing low-value product options.

The inputs for this scenario

  • Options removed or standardized: 36 options (held at the documented default)
  • Annual savings per option rationalized: 4,200 $ / option (held at the documented default)
  • Share of savings counted (realization scope): 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed program savings or one-time cost offset: 7,500 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable product option rationalization savings = options removed or standardized × annual savings per option rationalized × rationalization savings scope included.
  • total product option rationalization savings works out to 116,364 $ at these inputs, and this is the headline figure for the scenario.
  • product option rationalization savings per configured unit or quote works out to 3,232 $ / piece at these inputs.
  • variable product option rationalization savings works out to 108,864 $ at these inputs.
  • fixed rationalization program savings or cost offset works out to 7,500 $ at these inputs.

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 26.68% below the baseline at 116,364 $.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to share of savings counted, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. Per-option savings are estimates that bundle inventory, BOM, supplier, and quality effects, so validate them against actuals before booking the savings; cutting an option that a key customer relies on can also destroy revenue this model does not capture.

Results at a glance

  • total product option rationalization savings: 116,364 $ (headline result)
  • product option rationalization savings per configured unit or quote: 3,232 $ / piece
  • variable product option rationalization savings: 108,864 $
  • fixed rationalization program savings or cost offset: 7,500 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Product Option Rationalization Savings calculator, set share of savings counted to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.