Integrating Cost Analysis and Production System Analysis Using Rapid Modeling Technology

  • Gregory Diehl
  • Rajan Suri
Conference paper

Abstract

The ability to forecast product costs and total costs as a function of changes in production mix, volumes, processes and strategy is a fundamental objective of cost analysis in manufacturing. The need to understand the production implications, which in turn impact the cost implications of changes, follows directly. Using a Rapid Modelling Technology (RMT) approach to estimate the factory changes we can easily generate the underlying production data needed for a complete and systemic cost analysis. The decision paradigm starts by building a baseline factory and cost model. The analysis proceeds by comparing this “complete model” with other potential “complete models”. Through the use of a few examples we demonstrate the analysis method and its generality. Examples include i) overtime decisions, ii) make versus buy decisions and iii) implications of component quality.

Keywords

Lead Time Component Quality Short Lead Time Manufacturing Model Overtime Cost 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Springer-Verlag New York, Inc. 1992

Authors and Affiliations

  • Gregory Diehl
    • 1
  • Rajan Suri
    • 2
  1. 1.Network Dynamics, Inc.BurlingtonUSA
  2. 2.Department of Industrial EngineeringUniversity of WisconsinMadisonUSA

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