INTEGRATED COST MODEL FOR IMPROVING THE PRODUCTION IN COMPANIES

Abstract

Purpose: All processes in the company play important role in ensuring functional integrated management system. We point out the importance of need for a systematic approach to the use of quantitative, but especially statistical methods for modelling the cost of the improvement activities that are part of an integrated management system. Development of integrated management systems worldwide leads towards building of systematic procedures of implementation maintenance and improvement of all systems according to the requirements of all the sides involved.

Methodology: Statistical evaluation of the economic indicators of improvement costs and the need for a systematic approach to their management in terms of integrated management systems have become a key role also in the management of processes in the company Cu Drôt, a.s. The aim of this publication is to highlight the importance of proper implementation of statistical methods in the process of improvement costs management in the integrated management system of current market conditions and document the legitimacy of a systematic approach in the area of monitoring and analysing indicators of improvement with the aim of the efficient process management of company. We provide specific example of the implementation of appropriate statistical methods in the production of copper wire in a company Cu Drôt, a.s. This publication also aims to create a model for the estimation of integrated improvement costs, which through the use of statistical methods in the company Cu Drôt, a.s. is used to support decision-making on improving efficiency.

Findings: In the present publication, a method for modelling the improvement process, by an integrated manner, is proposed. It is a method in which the basic attributes of the improvement in quality, safety and environment are considered and synergistically combined in the same improvement project. The work examines the use of sophisticated quantitative, especially statistical methods for determining the most accurate estimation of the costs associated with improving processes. Model is based on known methods for modelling the cost of quality, safety and environment. It connects these costs into one function connected to the basic parameter of improvement, i.e. parameter, which is the subject of the improvement in the process. Created model focuses on determining the costs associated with reaching a certain level of improved parameter. The model is three-dimensional, while the third dimension is represented by the time.

Value: The proposed model uses modern statistical methods, some of which are substantially modified to suit the particular types of parameters of sub-processes taking place during rolling of copper wire. Integrated cost model for improving the production of copper wire, has another meaning: (i) allows to carry out an economic estimate of the costs associated with improving; (ii) highlights the bottlenecks in meeting customer requirements; (iii) proposes a methodology for the experimental verification of individual analyses; (iv) provides specific hypotheses about the set-up of process parameters, which can be verified in practice; (v) also proposes modifications of methods focused on regulation and estimation of capability of critical improvement parameter; (vi)  demonstrated the merits and application of quantitative methods in practical conditions of the manufacturing process.