Cost-Driven Informed Decisions Using Loss Analyses from Production Monitoring

Christina Windmark, Mikael Svensson

Research output: Chapter in Book/Report/Conference proceedingPaper in conference proceedingpeer-review


When embarking a cost reduction strategy, it is important to know what causes the costs, how the costs are connected to value adding and to non-value adding activities, and thereby conduct a knowledge-intensive production development. This paper present a method on how to connect costs to production losses and how they can relate to different cost factor groups. The method uses a digital tool that was designed in collaboration with a medium-sized tool manufacturing company, using several manufacturing operations in sequence. The tool is designed to be used for management monitoring and for strategic decisions. The method uses a performance-based cost model for discrete part manufacturing and incorporates an approximation when dividing the calculated loss costs. To ensure the accuracy of the model a sensitivity analysis was conducted. The result shows that only smaller errors occur due to this approximation and amount to a few percent when extremely high losses are in effect. The novelty of the paper is the variation of the cost model, ensuring that costs can be divided on each of the cost factor groups and investigated performance parameter. In addition, the designed layout of the result presentation in the digital tool, is a further development of the previous presented production performance matrix, which contribute to a comprehensive overview used for production monitoring.

Original languageEnglish
Title of host publicationSPS2020 - Proceedings of the Swedish Production Symposium
EditorsKristina Safsten, Fredrik Elgh
PublisherIOS Press
Number of pages11
ISBN (Electronic)9781614994398
Publication statusPublished - 2020
Event9th Swedish Production Symposium, SPS 2020 - Virtual, Online, Sweden
Duration: 2020 Oct 72020 Oct 8

Publication series

NameAdvances in Transdisciplinary Engineering


Conference9th Swedish Production Symposium, SPS 2020
CityVirtual, Online

Subject classification (UKÄ)

  • Production Engineering, Human Work Science and Ergonomics


  • Cost analysis
  • decision support
  • knowledgeable
  • manufacturing
  • value-based


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