Understanding the Cost of Disruptions in Manufacturing Facilities
Strategic Finance, Forthcoming
13 Pages Posted: 1 Mar 2015
Date Written: February 27, 2015
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.
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