• 제목/요약/키워드: production costs

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Integrated production planning in supply chain management environment considering manufacturing partners (SCM 환경에서의 협력 생산을 고려한 통합 생산 계획에 관한 연구)

  • Jeong Ho Sang;Jeong Bong Ju
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2002.05a
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    • pp.363-370
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    • 2002
  • This paper presents a production planning algorithm for minimizing the costs of production and subcontracting in SCM (supply chain management) environment. In our SCM environment, the several local plants that aye dispersed geographically produce parts and products. In this environment, we have to decide the production volumes of both parts and products considering the BOM (bill-of-material) structure to meet the fixed order quantity or forecasted demand quantity. Each plant produces the specified parts of product with finite production capacity. There exist subcontracting decisions relevant to the production capacity of each plant except the core process plant, and when we use the subcontractor's capacities we should be charged for the fixed subcontracting fees. The objective of this study is to solve the production planning problem, which minimizes the total costs of production, inventory, setup, and subcontracting under constraints of production and subcontracting capacity. For this problem, an integrated production planning model based on the multi-level capacitated lot sizing problem was formulated, and efficient decomposition algorithm was proposed. The experimental investigation shows that the proposed heuristic generates quite good solutions at very low computational costs.

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A Basic Study of Dynamic Simulation Model for In-situ Production and Erection of Precast Concrete Members (PC의 현장생산-설치 통합관리를 위한 동적 시뮬레이션 모델 기초연구)

  • Son, Seung-Hyun;Kim, Ki-Ho;Kim, Sun-Kuk
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2019.11a
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    • pp.42-43
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    • 2019
  • In-situ production of PC (precast concrete) members can reduce costs by about 14.5% -21.6% compared to in-plant production due to the reduction of transportation costs, factory profits and overhead costs. However, in-situ production of PC members presents a variety of risks, including member production and yard area securing, and lead time for production within the installation period. To solve this, it is necessary be able to analyze and control and monitor the risk factors that influence in-situ production for PC member. The purpose of this study is to develop a dynamic simulation model for in-situ production and erection integrated management for PC members. For this study, risk factor identification, causal loop diagram, and dynamic simulation model construction were performed sequentially. The results of this study will be used as a basis for developing a risk management model for PC in-situ production.

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A Study of Strategy for Planning of Rework in Semiconductor Monitoring Burn-in Test Process (반도체 MBT 공정의 Rework 제품 투입결정에 관한 연구)

  • Lee, Do-Hoon;Ko, Hyo-Heon;Kim, Sung-Shick
    • IE interfaces
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    • v.18 no.3
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    • pp.350-360
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    • 2005
  • This paper considers a strategy for planning of rework in semiconductor monitoring burn-in test process. The equipment error in monitoring burn-in test process generates many defects. These defects are transformed into good products by rework process, i.e. retest. Rework has the advantage of saving production costs. But rework increases holding costs and incurs rework costs. In monitoring burn-in test process, rework depends on operator's experience with no pre-defined specification. In practice, a number of rework activities are performed with respect to the product importance and inventory quantity. Moreover, disregard for order jobs schedule have caused due date penalties. So a strategy for planning of rework by which order jobs schedule are not affected is suggested. Futhermore, production costs, rework costs and inventory costs for planning of rework are considered.

Product-Mix Decision Using Lean Production and Activity-Based Costing: An Integrated Model

  • MOHSIN, Nidhal Mohammed Ridha;AL-BAYATI, Hossam Ahmed Mohamed;OLEIWI, Zahra Hasan
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.4
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    • pp.517-527
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    • 2021
  • While the two principles of lean manufacturing and time-driven activity-based costing (TDABC) have been established out of multiple incentives and do not follow the same particular targets, there is substantial commonality between them. In these conditions, the supply management of a multi-product system needs a rigorous production model to minimize costs. In this sense, this paper proposes an interactive model with the consideration of optimizing product-mix decisions using both lean development tools and TDABC. This paper proposes a qualitative approach using the case study of the Iraqi state company for battery production. The suggested model decreased manufacturing time and costs, along with some substantial reduction in idle production capacity by 26 percent in 2019, based on the findings of the case study. On the other hand, the proposed model gives two side advantages: an efficient division of costs on goods due to the use of time spent as a cost factor for products and cost savings due to the introduction of the lean manufacturing approach that reduces all additional costs and increases product-mix decisions. Furthermore, the analytical data gathered here suggests that the incorporation of lean management concepts and TDABC has a strong and important influence on product-mix decisions.

Core Factors Governing Manufacturing Procedures and Systems (의류 생산 시스템을 지배하는 핵심 요소들에 대한 고찰)

  • Lee, Duck-Weon;Lim, Ho-Sun;Shim, Woo-Sub
    • Journal of the Korean Society of Clothing and Textiles
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    • v.33 no.12
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    • pp.1910-1923
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    • 2009
  • This paper reviews four factors involved in apparel and textile manufacturing procedures under international economic fluctuation. This work will be helpful to evaluate the efficiency of global manufacturing systems. Production costs including direct costs related to material and labor costs, and indirect costs associated with manufacturing running ones are significantly correlated to diverse visible and invisible elements such as infrastructure and the labor skills of foreign manufacturing areas, which might create an apparent difference in production costs. Manufacturers can consider how to improve the efficiency of manufacturing systems through a review of the co-relationship between manufacturing procedures and four factors such as manufacturing systems, production outsourcing types, manufacturing locations, and production costs in detail. In addition, the four factors are the core parameters of determining or contributing to the efficiency of a production schedule that is ultimately associated with the supply chain management (SCM) to efficiently conduct Quick Response (QR).

Production Cost Analysis of Leaf tobacco farm Households (잎담배 재배농가의 생산비 분석)

  • Kim, Jai-Hong;Kang, Il-Tack
    • Korean Journal of Agricultural Science
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    • v.31 no.2
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    • pp.149-160
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    • 2004
  • This study had carried out an analysis of leaf tobacco production cost by cost items, growing stages, and farm sizes per 10a to provide the basic data for determination of the purchasing price of leaf tobacco by KT&G. Considering the survey results of 12 tobacco farm households, the composition rates of production cost by items revealed as 7-10% for land service, 5-22% for depreciation, 13-25% for material costs, 50-65% for labour cost respectively. The production cost of leaf tobacco by growing stages were shown as 15.3% in nursery bed period, 32.3% in main growing period in field, 30.8% in harvesting period and 21.6% in packing period. The magnitude of wage expenditure was appeared as harvesting stage, packing stage, growing stage on main field and nursery bed stage in order. The amount of material costs were revealed as the growing stage in main field, harvesting stage, nursery bed stage and packing stage respectively. The production costs of leaf tobacco per 10a by farm sizes were shown as 1,615,879won for small farm, 1,446,896won for medium farm and 1,454,408won for large farm respectively. The production cost of leaf tobacco had shown decreasing tendency according to increasing farm sizes. To promote the international market competitiveness of leaf tobacco producing farms, labour saving production technologies and cost effective farm size to decrease tobacco production cost should be developed.

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Cost Analysis of the Structural Work of Green Frame

  • Joo, Jin-Kyu;Kim, Sun-Kuk;Lee, Goon-Jae;Lim, Chae-Yeon
    • Journal of the Korea Institute of Building Construction
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    • v.12 no.4
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    • pp.401-414
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    • 2012
  • The adoption of Green Frame is expected to provide economic benefits, since construction costs are reduced by the in-situ production of precast concrete column and beam. The cost reduction can ultimately be realized by saving transportation costs and the overhead and profit of PC plants. The cost structure of Green Frame, which is built up using composite precast concrete members, is similar to that of a bearing-wall structure, but the difference in construction process has resulted in some cost differences for a few items. In particular, production and installation is the principal work involved in Green Frame made by precast concrete members, while form and concrete work is the principal work for a bearing-wall structure. As such, the rental time and fee for a tower crane should be compared through time analysis. To verify reliability, this study focused on developed residential projects to estimate the construction costs. Through this analysis, it was found that the costs of Green Frame were 1.57% lower than the costs of bearing-wall structure. The results of this study will help in the development of a management plan for the structural work of Green Frame.

Apportioning the Production Quantities into Parallel Production Facilities for Multiple Products (복수 제품의 병렬 생산 설비별 생산량 할당 방법에 관한 연구)

  • Kim, Tae-Bok
    • Korean Management Science Review
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    • v.24 no.1
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    • pp.63-76
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    • 2007
  • To realize the mass customization entails the optimized supply chain design for efficiently producing and delivering the various products. In this study, we considered the problem obtaining the optimized production policy under the situation wherein the multiple products are apportioned into multiple parallel production facilities. More specifically, the production set-up costs incurs according to whether the production facilities are utilized or not. The facility-dependent set-up costs increase the problem complexity in solving the production apportioning problem for multiple products. This problem can be formulated as concave minimization problem, which is known as NP-hard problem. In this paper, a heuristic algorithm is proposed to solve two conjoint problems : one is to select the cost-effective facilities from alternative multiple production facilities and the other is to apportion the production lot to those selected facilities.

Analysis of the Costs of Climate Change Damage to Laver and Sea Mustard Aquaculture in Korea (김·미역 양식의 기후변화 피해비용 분석)

  • Yu-Jin Yun;Bong-Tae Kim
    • The Journal of Fisheries Business Administration
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    • v.54 no.2
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    • pp.045-058
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    • 2023
  • This study aims to analyze the cost of climate change damages to laver and sea mustard aquaculture, which are considered to be highly vulnerable to climate change in Korea. For this purpose, the correlation between aquaculture production and climate factors such as water temperature, salinity, air temperature, and precipitation was estimated using a panel regression model. The SSP scenario was applied to predict the changes in production and damage costs due to changes in future climate factors. As a result of the analysis, laver production is predicted to decrease by 18.0-27.2% in 2050 and 20.6-61.6% in 2100, and damage costs are predicted to increase from 29.7-50.8 billion KRW in 2050 to 35.7-116.1 billion KRW in 2100. Sea mustard production is projected to decrease by 24.5-37.2% in 2050 and 24.0-34.5% in 2100, with similar damage costs of 41.1-61.8 billion KRW and 41.1-58.6 billion KRW, respectively. These damage costs are expected to occur in the short term as damage caused by fishery disasters such as high temperatures, and in the long term as a decrease in production due to changes in aquaculture sites. Therefore, measures such as strengthening the forecasting system to prevent high-temperature damage, developing high-temperature-resistant varieties, and relocating fishing grounds in response to changes in aquaculture sites will be necessary.

Economic Feasibility Study for Commercial Production of Bio-hydrogen (해양바이오수소개발 사업의 상업생산을 위한 예비경제성평가)

  • Park, Se-Hun;Yoo, Young-Don;Kang, Sung Gyun
    • Ocean and Polar Research
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    • v.38 no.3
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    • pp.225-234
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    • 2016
  • This project sought to conduct an economic feasibility study regarding the commercial production of bio-hydrogen by the marine hyperthermophilic archaeon, Thermococcus onnurineus NA1 using carbon monoxide-containing industrial off-gas. We carried out the economic evaluation of the bio-hydrogen production process using the raw material of steel mill by-product gas. The process parameter was as follows: $H_2$ production rate was 5.6 L/L/h; the conversion of carbon monoxide was 60.7%. This project established an evaluation criterion for about 10,000 tonne/year. Inflation factors were considered as 3%. The operating costs were recalculated based on prices in 2014. The total investment required for development was covered 30% by capital and 70% by a loan. The operation cost for the 0.5-year test and integration, and the cost for the first three months in the 50% production period were considered as the working capital in the cost estimation. The costs required for the rental of office space, facilities, and other related costs from the construction through to full-scale production periods were considered as continuing expenses. Materials, energy, waste disposal and other charges were considered as the operating cost of the development system. Depreciation, tax, maintenance and repair, insurance, labor, interest rate charges, general and administrative costs, lubrication and miscellaneous expenses were also calculated. The hydrogen price was set at US$ 4.15/kg for the economic evaluation. As a result, the process was considered to be economical with the payback period of 6.3 years, NPV of 18 billion Won and IRR of 26.7%.