Life Cycle Costing in Manufacturing Process Management

2012 ◽  
Author(s):  
Gerhard Moser ◽  
Julien Le Duigou ◽  
Magali Bosch-Mauchand
Keyword(s):  
Life Cycle ◽  
Manufacturing Process ◽  
Process Management ◽  
Business Environment ◽  
Life Cycle Costing ◽  
Product Lifecycle Management ◽  
Case Based Reasoning ◽  
Design Decision ◽  
Activity Based Costing ◽  
Manufacturing Process Management

In the last two decades during which the competitive business environment increased, it became crucial for each company to find the most accurate strategy to make survive its business. For that reason they need to manage and control their costs. Life Cycle Costing is one of these tools, which helps to analyse the cost of a product in the whole life of a product. To be competitive, the organisations have to optimize not only their products but also all their processes. Manufacturing Process Management (MPM) addresses the area between product design and production. Therefore MPM supports to optimize the manufacturing area of a factory. With different virtual scenarios the best solution of the manufacturing process can be obtained and at the same time it is possible to reduce time to market, costs and increase the quality. The focus of this paper is to integrate Life Cycle Costing tools and methods in the MPM part of the Product Lifecycle Management (PLM). We will discuss the implementation of Activity Based Costing (ABC) and Case-Based Reasoning (CBR) methods in a PLM tool for an early design decision support.

Life Cycle Cost Modeling of Pumps Using an Activity Based Costing Methodology

2010 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Anil Dattatraya Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Business Environment ◽  
Life Cycle Costing ◽  
Activity Based Costing ◽  
Global Business ◽  
Product Life ◽  
Traditional Costing ◽  
The Cost

In order to survive in today’s competitive global business environment, implementation of life cycle costing methodology with a greater emphasis on cost control could be one of the convincing approaches for the manufacturing firms. The product life cycle costing approach can help track and analyse the cost implications associated with each phase of product life cycle. Life cycle costing (LCC) practices with traditional costing methods may provide results that have a severe deviation from the real product LCC as it focuses on the cost of materials, labor and a low portion of overheads apportioned by the absorption rate to the product. Activity based costing (ABC) has emerged as one of the several innovative and more accurate costing methods in recent years. It is based on the principle that products or services consume activities and activities consume resources that generate costs. Thus, the ABC system focuses on calculating the costs incurred on performing the activities to manufacture a product. This paper presents a LCC modeling approach for estimating life cycle cost of pumps using activity based costing method. The study was conducted in a large pump manufacturing company from India that has significant global standing within its industry. Firstly, all the activities and cost drivers associated with the life cycle of a pump have been identified. A methodology for LCC analysis using ABC is then developed and it is applied to two different pumps manufactured by the same industry and the results obtained are presented.

Process Management of Aircraft Manufacturing Based on Single Enterprise BOM

2013 ◽  
Vol 394 ◽  
pp. 222-227
Author(s):  
Zhou Yang Li ◽  
Yan Ni Lei
Keyword(s):  
Manufacturing Process ◽  
Process Management ◽  
Prototype System ◽  
Data Mapping ◽  
Manufacturing Enterprises ◽  
Management Platform ◽  
Whole Process ◽  
Aircraft Manufacturing ◽  
Manufacturing Process Management ◽  
Mass Information

nformation exchange and sharing are difficult in manufacturing process for manufacturing enterprises, especially for aircraft manufacturing enterprises, which have complex product to fabricate and mass information to handle. To solve this problem, a Single Enterprise BOM (SEBOM) based Aircraft Manufacturing Process Management System (AMPMS) is promoted to support the whole process of aircraft manufacturing, based on the analysis of aircraft manufacturing process and the process of data flowing. In AMPMS, in order to satisfy the information requirement, a SEBOM is established by unifying various BOM data. A unified SEBOM management platform is established to managing distributed and heterogeneous SEBOM data. Furthermore, the key technologies including BOM data mapping and BOM data agent management are discussed in detail. The validity and feasibility of AMPMS system are verified by developing a prototype system.

Integrated and Consistent Management of Product-Process Information

2012 ◽  
Author(s):  
Frédéric Demoly ◽  
Dimitris Kiritsis
Keyword(s):  
Process Management ◽  
Product Information ◽  
Product Lifecycle Management ◽  
Assembly Sequence Planning ◽  
Assembly Sequence ◽  
Levels Of Abstraction ◽  
Design Paradigm ◽  
Definition Of ◽  
Manufacturing Process Management ◽  
Relationships Management

The paper describes an approach to product relationships management in the context of concurrent engineering and product lifecycle management (PLM). Current industrial practices in Product Data Management and Manufacturing Process Management systems require better efficiency, flexibility, and sensitivity in managing product information at various levels of abstraction throughout its lifecycle. The aim of the proposed work is to manage vital yet complex and inherent product relationship information to enable concurrent product design and assembly sequence planning. Indeed, the definition of the product with its assembly sequence requires the management and the understanding of the numerous product relationships, ensuring consistency between the product and its components. This main objective stresses the relational design paradigm by focusing on product relationships along its lifecycle. This paper gives the detailed description of the background and models which highlight the need for a more efficient PLM approach; then the theoretical approach is described.

Sign in / Sign up

Export Citation Format

Share Document