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  • 1.
    Johansson, Anders
    University West, Department of Engineering Science, Research Enviroment Production Technology West. Global Industrial Development, Scania CV AB, Södertälje.
    Money talks while volume and value should run the show: An evaluation of financial parameters for decision making duringmanufacturing system acquisition2017Licentiate thesis, comprehensive summary (Other academic)
    Abstract [en]

    Market economic values have for the last decades been given an increasing role with the establishment of financial institutes and global organisations with a capitalistic focus as a consequence. As a counter reaction, the concept of sustainable development has emerged complementing the economic focus with environmental and social aspects. However, there are still challenges on how to make balanced decisions based on all three view points and consequently the decision makers still primarily reside to the established tangible financial data. Within the industrial setting there is no difference. The manufacturing system design is based on multiple criteria and requirements, but commonly the final investment decision is primarily based on what can be financially justified. Longterm solutions probably lies in combining the tangible economy with the less tangible soft values that cannot be valued in monetary means. Therefore, to find this sweet spot, the purpose of this research is to in-depth investigate the world of economy, but from an engineers' point of view. A financial analysis is done to understand the economical components and how these are related to the manufacturing system. Furthermore, to connect cost with contributed value of the manufacturing system, a holistic business value chain analysis is done to ensure that less tangible aspects can be understood and utilised. The result of this research, highlights for example that sales volume has a larger impact on the manufacturing profitability, than that of the initial investment cost. Therefore, manufacturing systems should also be evaluated on the bases of how well it can meet the volatility in market demands. Another result presented is a portfolio of new graphical representation used as a support tool for investment decisions. Furthermore, to be able to invest in manufacturing systems that contribute to a more competitive company, the wider business value with manufacturing is discussed.

  • 2.
    Johansson, Anders
    et al.
    University West, Department of Engineering Science, Research Enviroment Production Technology West. Global Industrial Development, Scania CV AB, Södertälje.
    Gustavsson Christiernin, Linn
    University West, Department of Engineering Science, Division of Production Systems.
    Pejryd, Lars
    School of Science and Technology, Örebro University.
    Manufacturing System Design for Business Value, a Holistic Design Approach2016In: Procedia CIRP, ISSN 2212-8271, E-ISSN 2212-8271, Vol. 50, p. 659-664Article in journal (Refereed)
    Abstract [en]

    When designing and developing manufacturing systems, many aspects need to be considered. Typically, the manufacturing design objectives are specified to achieve certain operational requirements around quality, capacity, cost etc. They are also specified withthe intention to ensure efficient processes related to manufacturing, such as maintenance, logistics, not to mention the main process of manufacturing the actual part. This study proposes that a wider company perspective should be considered during manufacturing system design, to achieve a greater business value. The manufacturing system should be designed to create value to other core business processes, such as product development, marketing, sales and services. This paper also presents examples on value perspectives to consider and how this approach can be implemented.

  • 3.
    Johansson, Anders
    et al.
    University West, Department of Engineering Science, Research Enviroment Production Technology West. Global Industrial Development, Scania CV AB, Södertälje, Sweden.
    Nafisi, Mariam
    Mälardalen University, School of Innovation, Design and Engineering, Eskilstuna, Sweden.
    The natural process mapping phenomenon: Resource oriented vs. value flow oriented2016In: The 7th International Swedish Production Symposium, SPS16, Conference Proceedings: 25th – 27th of October 2016, Lund: Swedish Production Academy , 2016, p. 1-6Conference paper (Refereed)
    Abstract [en]

    Lean philosophy has created awareness and eagerness in companies to strive to continuously improve their performance and profitability. This is usually done by improving important and influential core processes since process focus gives the right quality results as well. Thus mapping processes have become more common in recent years. Creating a visual process map is the first step for understanding and improvements.Even though many companies map their processes and try to improve them, they are not always successful.This can be attributed to various reasons, an important one being the perspective from which the process is mapped. The starting point of this paper is that novice modelers naturally model processes from their own perspective, neglecting the goal or the value that the process is meant to achieve. This is demonstrated through simple workshops, at which the participants are tasked to map the “breakfast process”. It is shown in this study that different perspective in the process mapping leads to different process maps and consequently to different process improvement possibilities. Similar experiments are needed to be applied for industrial processes, such as Product Development process or Production System Development process, before the results of the paper can be generalized.

  • 4.
    Johansson, Anders
    et al.
    University West, Department of Engineering Science, Research Enviroment Production Technology West. Global Industrial Development, Scania CV AB, Södertälje.
    Pejryd, Lars
    School of Science and Technology, Örebro University.
    Gustavsson Christiernin, Linn
    University West, Department of Engineering Science, Division of Manufacturing Processes.
    Consideration of market demand volatility risks, when making manufacturing system investments2016In: Procedia CIRP, ISSN 2212-8271, E-ISSN 2212-8271, Vol. 40, p. 307-311Article in journal (Refereed)
    Abstract [en]

    When investing in new manufacturing systems, many aspects must be taken into consideration to ensure a sustainable business. In respect to the financial aspect, both the one-off investment cost and the continuous operational cost must be analysed to ensure that the life-cycle cost perspective is appreciated. However, one detail in the cost analyses that is often overlooked is the composition of fixed and variable cost elements. These details are important to be able to better manage the risk of market demand volatility, and accordingly make appropriateinvestment decisions. This case study demonstrates that when there is a low risk for reduced market demand, investing in a manufacturing system with low variable cost is favourable. However, if there is a high risk for reduced market demand, the importance will instead be to have a low fixed cost, as this will be the dominant cost factor.

  • 5.
    Johansson, Anders
    et al.
    University West, Department of Engineering Science, Research Enviroment Production Technology West. Global Industrial Development, Scania CV AB, Södertälje.
    Pejryd, Lars
    School of Science and Technology, Örebro University.
    Gustavsson Christiernin, Linn
    University West, Department of Engineering Science, Division of Production Systems.
    Production support model to manage market demand volatility risks2016In: Procedia CIRP, ISSN 2212-8271, E-ISSN 2212-8271, Vol. 57C, p. 664-668Article in journal (Refereed)
    Abstract [en]

    In the investment selection process during the design of new manufacturing systems, both the technical attributes and the expected financial performance need to be evaluated. To manage the financial risks with market volatility, it is important to understand the composition of fixed and variable cost factors in relation to the expected volume interval. The support model developed in this paper will in a simple and intuitive way visualise the effect on production cost due to changes in market demands. It can also be used to evaluate the volume sensitivity of existing manufacturing systems, even compare systems making different products.

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