Projects / Programmes
Model for simultaneous measurement of production costs in highly automated production
| Code |
Science |
Field |
Subfield |
| 7.00.00 |
Interdisciplinary research |
|
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
| T130 |
Technological sciences |
Production technology |
| T120 |
Technological sciences |
Systems engineering, computer technology |
Product management, Total productivity management, production frontiers
Researchers (7)
| no. |
Code |
Name and surname |
Research area |
Role |
Period |
No. of publicationsNo. of publications |
| 1. |
21235 |
PhD Aleš Brezovar |
Manufacturing technologies and systems |
Researcher |
2007 - 2008 |
0 |
| 2. |
05996 |
PhD Slavko Dolinšek |
Manufacturing technologies and systems |
Head |
2007 - 2008 |
0 |
| 3. |
23901 |
PhD Matjaž Novak |
Economics |
Researcher |
2007 - 2008 |
0 |
| 4. |
11284 |
PhD Saša Sokolić |
Manufacturing technologies and systems |
Researcher |
2007 - 2008 |
0 |
| 5. |
17808 |
PhD Rok Strašek |
Mathematics |
Researcher |
2007 - 2008 |
0 |
| 6. |
04217 |
PhD Egon Žižmond |
Economics |
Researcher |
2007 - 2008 |
0 |
| 7. |
12343 |
PhD Alenka Žnidaršič |
Systems and cybernetics |
Researcher |
2007 - 2008 |
0 |
Organisations (2)
Abstract
The broader research focus of the present project is the problem related to efficient production costs management, which is one of the central activities of product management within the enterprise. The efficiency of the production can be improved in several manners; too often reallocation of production plants is used to economies with inexpensive labor costs. Due to this fact the European and Slovenian processing industry has been losing traditional competitive advantages, which significantly reduces the potential for long-term economic growth. A much better alternative, which can potentially solve this problem, is to switch to a production using highly automated, flexible production lines (knowledge based lean production).
The methodology, which enables us to master the production efficiency on highly automated production lines in a structural manner, is the so-called total productivity management (TPM). Production efficiency can be directly measured by the parameter, defined as overall equipment effectiveness (OEE). An application of this methodology has been developed and successfully applied for specific industrial branches by the company Metronik. By such industrial application technical management of production efficiency has been solved.
However, these data can not give the management sufficient relevant information for decision-making (i.e. investment in the new facilities and equipment, to open new sales channels). For this purpose the initial data need to be supplemented by additional estimates on the impact of technical inefficiency on the production costs. The traditionally used cost model, based on the application of average production and cost functions, provides inaccurate information on cost aspects in the production. In economic theory therefore a model of production and costs frontiers or marginal production and cost functions is used, which overcome the main disadvantages of averaging. For the estimation of production frontiers special econometric software is required, therefore those models are rarely used in spite of the essential advantages compared to the common used practices of analyzing and measurement of cost functions. From the theoretical point of view the model is not new, but its practical application is new and unrealized until now. The central point of the project is: to use a theoretical developed model of production frontiers for the application of simultaneous measurement of cost efficiency of production at highly automated production lines. Practical application will upgrade the existing, by information technology supported, TPM methodology.
Significance for science
Design and application of the model for simultaneous measurement of production costs have significant contribution to the scientific achievements particularly at the area of algorithm development used for econometrical estimation of production frontiers parameters. At the work program the advantages in context of use the production frontiers has been pointed out. For the frontiers parameter estimation we developed a proper algorithm, which is able to define the estimator. According to the econometrical criteria’s estimator meet demands of unbiased and efficiency. Decision of which estimator is the most efficient is related to the nature of the data. There is also pointed out that there recently is no adequate model, which can be applied at such an application – to estimate parameters of production frontiers at the automated production line.
Therefore there was no theoretical foundation to support the choice of proper algorithm for frontiers parameters estimation, where the estimation procedure can follow the speed of the input data which is equal to the activities at the production line. Particularly at that segment our practical experiences serve as a base for generating new scientific achievements.
Significance for the country
Slovenian processing industry is faced with more and more demanding challenges in their struggle for the survival due to the strong competition from the countries with the low paid workforce. To reestablish competitive advantages a move need to be made into the knowledge based production (Lisbon’s goals) and manufacture of products with high added value (Gothenburg’s goals).
However those directions dictate to the mass production of the identical products introduction of concepts of customization and high automation. Only in such a way it will be possible to retain existing production or make it more competitive. The results of the projects are therefore important for co-financer and also have indirect implication for increase of productivity of whole Slovenian processing industry.
Most important scientific results
Final report,
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Most important socioeconomically and culturally relevant results
Final report,
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