The Power of Six: Relation Between Time and Money in Manufacturing for Segments of the Value Stream

Roser, C; Langer, B; Deuse, J

The Power of Six: Relation Between Time and Money in Manufacturing for Segments of the Value Stream

Roser, C Langer, B Deuse, J

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Publisher:: Springer International Publishing
Publication Type:: Conference Proceeding
Citation:: Lecture Notes in Networks and Systems, 2020, 122, pp. 21-28
Issue Date:: 2020-01-01

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Field	Value	Language
dc.contributor.author	Roser, C
dc.contributor.author	Langer, B
dc.contributor.author	Deuse, J https://orcid.org/0000-0003-4066-4357
dc.date.accessioned	2021-05-27T08:31:25Z
dc.date.available	2021-05-27T08:31:25Z
dc.date.issued	2020-01-01
dc.identifier.citation	Lecture Notes in Networks and Systems, 2020, 122, pp. 21-28
dc.identifier.isbn	9783030414283
dc.identifier.issn	2367-3370
dc.identifier.issn	2367-3389
dc.identifier.uri	http://hdl.handle.net/10453/149279
dc.description.abstract	A major influence on the cost of a product is the time it takes to make this product. Traditional cost accounting can grasp part of this relation, but misses many critical aspects of having a faster time to the customer. Rajan Suri analyzed this relation empirically. Based on a data set with industrial data he determined an empirical mathematical relation between the turnaround time to the customer (or replenishment time) and the product cost for the entire value stream. This paper modifies the approach by Suri to be applied also to segments of the value stream, creating a relation between the cost within of a segment of a value stream and the time it takes for a part to pass through this segment of a value stream. This allows the estimation of the improvement in cost and the reduction in turnaround time also for sub-segments of the value stream, helping decision makers to better understand the impact of their decisions.
dc.language	en
dc.publisher	Springer International Publishing
dc.relation.ispartof	Lecture Notes in Networks and Systems
dc.relation.isbasedon	10.1007/978-3-030-41429-0_3
dc.rights	info:eu-repo/semantics/closedAccess
dc.title	The Power of Six: Relation Between Time and Money in Manufacturing for Segments of the Value Stream
dc.type	Conference Proceeding
utslib.citation.volume	122
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	/University of Technology Sydney/Faculty of Engineering and Information Technology/School of Mechanical and Mechatronic Engineering
utslib.copyright.status	closed_access	*
dc.date.updated	2021-05-27T08:31:24Z
pubs.publication-status	Published
pubs.volume	122

Abstract:

A major influence on the cost of a product is the time it takes to make this product. Traditional cost accounting can grasp part of this relation, but misses many critical aspects of having a faster time to the customer. Rajan Suri analyzed this relation empirically. Based on a data set with industrial data he determined an empirical mathematical relation between the turnaround time to the customer (or replenishment time) and the product cost for the entire value stream. This paper modifies the approach by Suri to be applied also to segments of the value stream, creating a relation between the cost within of a segment of a value stream and the time it takes for a part to pass through this segment of a value stream. This allows the estimation of the improvement in cost and the reduction in turnaround time also for sub-segments of the value stream, helping decision makers to better understand the impact of their decisions.

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http://hdl.handle.net/10453/149279