Exploring improvement trajectories with dynamic process cost modelling: A case from the steel industry

Joakim Storck (1)

1 Dalarna University

A five-step framework to support the development of strategic manufacturing capabilities through dynamic process cost modelling is presented. The framework aims to develop insight into what manufacturing capabilities are required to reach the strategic goals. The framework combines system dynamics simulation with process cost modelling and visual exploratory data analysis in an iterative process of hypothesis formulation and model development. The presented framework links the strategy process to the choice of production and operations improvement initiatives on the plant level. System dynamics encourages a high level perspective that permits manufacturing capabilities to be interpreted in terms of generic production features instead of choice of technology or practice. The value of dynamic process cost modelling as a support to the strategy formulation process is shown. The applicability of the five-step framework is demonstrated through a case study from the steel industry.

Mots clés: Physical Sciences

Joakim Storck. Exploring improvement trajectories with dynamic process cost modelling: A case from the steel industry. International Journal of Production Research, 2010, 48 (12), pp.3493-3511. ⟨10.1080/00207540902725288⟩. ⟨hal-00583568⟩