Cost assessment of a production system–A method targeting a product´ s aggregated value stream costs

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Abstract

A production system is often complex, involving several production steps with a material flow entering and exiting at different stages throughout the value stream. This article aims to present a method giving the aggregated cost of a product in a production system, were material and components entering the value stream carrying their own capital and handling costs. The article describes an empirical study involving a production system, with high material costs and a process-oriented layout. The findings indicate that increased capacity and decrease in number of active orders enables lead-time reduction whereas decrease in costs mainly depends on operation improvements.

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Subject classification (UKÄ) – MANDATORY

  • Production Engineering, Human Work Science and Ergonomics

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Original languageEnglish
Pages (from-to)231-238
Number of pages8
JournalProcedia Manufacturing
Volume25
Publication statusPublished - 2018
Publication categoryResearch
Peer-reviewedYes