Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies

Babak Kianian; Martin Kurdve; Carin Andersson

doi:10.1016/j.procir.2019.01.025

Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies

Babak Kianian, Martin Kurdve, Carin Andersson

Chalmers Tekniska Högskola

Forskningsoutput: Kapitel i bok/rapport/Conference proceeding › Konferenspaper i proceeding › Peer review

Sammanfattning

Even if practitioners want to adopt new manufacturing technologies, there is a lack of comprehensive tools to support their decisions, regarding both cost and sustainability. This paper reviews and compares the practical use of Life Cycle Costing (LCC) with a performance part costing (PPC) model, chosen based upon the criteria of providing in-depth analysis capabilities and the prospect of integrating cost and sustainability assessment. A case study of a Swedish gear manufacturer is selected, where the company investigates adoption of a new manufacturing technology. Since, this type of decision requires heavy investments e.g. in new machines, tools, linking performance with costs would be a prerequisite for performing well-informed decisions. Based on interviews, the level of detail requirements e.g., performance indicators, when acquiring new technologies are identified. LCC model cost parameters are compared with the PPC cost drivers and the data availability and estimation are discussed.

Originalspråk	engelska
Titel på värdpublikation	26th CIRP Conference on Life Cycle Engineering (LCE)
Sidor	428-433
Antal sidor	5
Volym	80
DOI	https://doi.org/10.1016/j.procir.2019.01.025
Status	Published - 2019 maj 4
Evenemang	26th CIRP conference on life cycle engineering (LCE 2019): Advancing Industrial Sustainability - Purdue University -- West Lafayette, IN, West lafayette, USA Varaktighet: 2019 maj 7 → 2019 maj 9 https://engineering.purdue.edu/LCE2019

Publikationsserier

Namn	Procedia CIRP
Förlag	Elsevier
ISSN (tryckt)	2212-8271

Konferens

Konferens	26th CIRP conference on life cycle engineering (LCE 2019)
Förkortad titel	LCE2019
Land/Territorium	USA
Ort	West lafayette
Period	2019/05/07 → 2019/05/09
Internetadress	https://engineering.purdue.edu/LCE2019

Ämnesklassifikation (UKÄ)

Produktionsteknik, arbetsvetenskap och ergonomi

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10.1016/j.procir.2019.01.025Licens: CC BY-NC-ND

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https://www.sciencedirect.com/science/article/pii/S2212827119300277

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title = "Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies",

abstract = "In today{\textquoteright}s business environment, the trend towards more product variety and customization is unbroken. Due to this development, the need of agile and reconfigurable production systems emerged to cope with various products and product families. To design and optimize production systems as well as to choose the optimal product matches, product analysis methods are needed. Indeed, most of the known methods aim to analyze a product or one product family on the physical level. Different product families, however, may differ largely in terms of the number and nature of components. This fact impedes an efficient comparison and choice of appropriate product family combinations for the production system. A new methodology is proposed to analyze existing products in view of their functional and physical architecture. The aim is to cluster these products in new assembly oriented product families for the optimization of existing assembly lines and the creation of future reconfigurable assembly systems. Based on interviews, the level of detail requirements e.g., performance indicators, when acquiring new technologies are identified. LCC model cost parameters are compared with the PPC cost drivers and the data availability and estimation are discussed.",

keywords = "Life Cycle Costing (LCC), Performance part costing (PPC), decision support system (DSS), gear manufacturing",

author = "Babak Kianian and Martin Kurdve and Carin Andersson",

year = "2019",

month = may,

day = "4",

doi = "10.1016/j.procir.2019.01.025",

language = "English",

volume = "80",

series = "Procedia CIRP",

publisher = "Elsevier",

pages = "428--433",

booktitle = "26th CIRP Conference on Life Cycle Engineering (LCE)",

note = "26th CIRP conference on life cycle engineering (LCE 2019) : Advancing Industrial Sustainability, LCE2019 ; Conference date: 07-05-2019 Through 09-05-2019",

url = "https://engineering.purdue.edu/LCE2019",

}

Kianian, B, Kurdve, M & Andersson, C 2019, Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies. i 26th CIRP Conference on Life Cycle Engineering (LCE). vol. 80, Procedia CIRP, s. 428-433, 26th CIRP conference on life cycle engineering (LCE 2019), West lafayette, Indiana, USA, 2019/05/07. https://doi.org/10.1016/j.procir.2019.01.025

Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies. / Kianian, Babak; Kurdve, Martin; Andersson, Carin.
26th CIRP Conference on Life Cycle Engineering (LCE). Vol. 80 2019. s. 428-433 (Procedia CIRP).

Forskningsoutput: Kapitel i bok/rapport/Conference proceeding › Konferenspaper i proceeding › Peer review

TY - GEN

T1 - Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies

AU - Kianian, Babak

AU - Kurdve, Martin

AU - Andersson, Carin

PY - 2019/5/4

Y1 - 2019/5/4

N2 - In today’s business environment, the trend towards more product variety and customization is unbroken. Due to this development, the need of agile and reconfigurable production systems emerged to cope with various products and product families. To design and optimize production systems as well as to choose the optimal product matches, product analysis methods are needed. Indeed, most of the known methods aim to analyze a product or one product family on the physical level. Different product families, however, may differ largely in terms of the number and nature of components. This fact impedes an efficient comparison and choice of appropriate product family combinations for the production system. A new methodology is proposed to analyze existing products in view of their functional and physical architecture. The aim is to cluster these products in new assembly oriented product families for the optimization of existing assembly lines and the creation of future reconfigurable assembly systems. Based on interviews, the level of detail requirements e.g., performance indicators, when acquiring new technologies are identified. LCC model cost parameters are compared with the PPC cost drivers and the data availability and estimation are discussed.

AB - In today’s business environment, the trend towards more product variety and customization is unbroken. Due to this development, the need of agile and reconfigurable production systems emerged to cope with various products and product families. To design and optimize production systems as well as to choose the optimal product matches, product analysis methods are needed. Indeed, most of the known methods aim to analyze a product or one product family on the physical level. Different product families, however, may differ largely in terms of the number and nature of components. This fact impedes an efficient comparison and choice of appropriate product family combinations for the production system. A new methodology is proposed to analyze existing products in view of their functional and physical architecture. The aim is to cluster these products in new assembly oriented product families for the optimization of existing assembly lines and the creation of future reconfigurable assembly systems. Based on interviews, the level of detail requirements e.g., performance indicators, when acquiring new technologies are identified. LCC model cost parameters are compared with the PPC cost drivers and the data availability and estimation are discussed.

KW - Life Cycle Costing (LCC)

KW - Performance part costing (PPC)

KW - decision support system (DSS)

KW - gear manufacturing

UR - https://www.sciencedirect.com/science/article/pii/S2212827119300277

U2 - 10.1016/j.procir.2019.01.025

DO - 10.1016/j.procir.2019.01.025

M3 - Paper in conference proceeding

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T3 - Procedia CIRP

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BT - 26th CIRP Conference on Life Cycle Engineering (LCE)

T2 - 26th CIRP conference on life cycle engineering (LCE 2019)

Y2 - 7 May 2019 through 9 May 2019

ER -

Comparing Life Cycle Costing and Performance Part Costing in Assessing Acquisition and Operational Cost of New Manufacturing Technologies

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