Understanding the Cost of Disruptions in Manufacturing Facilities
Strategic Finance, Forthcoming
13 Pages Posted: 1 Mar 2015
Date Written: February 27, 2015
Abstract
Most automated manufacturing systems involve interconnected workstations that are subject to random disruptions. Understanding the cost of disruptions is critical for strategic cost management at the plant-floor level. We propose a four-step procedure to measure the cost of disruptions and apply it to cost bottleneck identification and performance evaluation.
Suggested Citation: Suggested Citation
Bai, Ge and Kajiwara, Takehisa and Liu, Jianbo, Understanding the Cost of Disruptions in Manufacturing Facilities (February 27, 2015). Strategic Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2571370
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