The Cost Estimation of Production Orders

Part 8: Industrial ApplicationsInternational audienceTime and cost oriented management of production orders requires methods and models of business processes in the enterprise as well as a structural analysis and a reference model of a production process based on a model of a production order. Estimating costs of the execution of a production order may contribute to initial and quite accurate analysis of the costs of the order. The developed method allows for estimation of the interdependence of costs in comparison with different clients. An example shows an analysis of costs of the manufacture of a frame for usual clients, who have no specific requirements, and for clients with additional requests regarding the products. The analysis of the costs of execution of such orders may help estimate the costs of diverse products in the future as well as predict cost variations for different orders. Additional operations may be taken into account and added to the final assessment of costs, which will allow for more accurate cost calculating and indicating orders with worse profitability or orders which cannot be executed due to excessive production costs. The method allows for assessment of production costs both in a sequential model and in distributed manufacturing