performance and cost analysis seminar n.
Skip this Video
Loading SlideShow in 5 Seconds..
Performance and cost analysis: seminar PowerPoint Presentation
Download Presentation
Performance and cost analysis: seminar

Loading in 2 Seconds...

play fullscreen
1 / 10

Performance and cost analysis: seminar - PowerPoint PPT Presentation

  • Uploaded on

Performance and cost analysis: seminar. Marcus Komponenter AB. Benjamin Rubin Anders Holmberg Arvid Claeson. Marcus Komponenter. Producing unthreaded fixing elements

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Performance and cost analysis: seminar' - janina

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
performance and cost analysis seminar

Performance and cost analysis: seminar

Marcus Komponenter AB

Benjamin Rubin Anders Holmberg Arvid Claeson

marcus komponenter
Marcus Komponenter
  • Producing unthreaded fixing elements
  • 16 employees with 2 million euros of revenues (24 million products delivered every year, with 4000 different article numbers in their catalogue)
  • The MARCUS-stick (in the picture above) is their, by far, biggest product both volume-wise and revenue-wise
value chain s
Value chain(s)

Two different value chains; for specially ordered products and own produced articles, respectively:

Design (CAD together with customer)Supply (receiving raw material, in this case steel wires)Production (the core)Distribution


All in all, Marcus has demanding customers, that wants large volumes of products fast. This puts pressure on the production and distribution apparatus, which for a sustainable competition must fulfil the wants effectively. That is, with fast throughput time and with as low inventory levels as possible.

production the core
Production – the core

Different products demand different production steps, but the picture below visualises the factory and thus some of the identified different cost centres;

Färdigvarulager=finished goods storage, Pack=packaging, Slip=grinding, Råvarulager=raw material storage, Klipp=cutting and rolling machine, Svarvar=lathes

major activites cost centers cost drivers
Major activites – cost centers – cost drivers

Major activities

Production and distribution of diverse products (both specially ordered and common products)

Cost centers for production

Production centers for each individual product are the cost centers (lathe, cutting and rolling machine, grinding machine and soforth)


Cost drivers

Machine hours

Storage costs (including both storage and bufferts) –>minimize by just in time

Labor hours

Production of large volumes and batches makes it diffcult to allocate overhead costs for single products. Therefore, we suggest to use an activity based cost management system in order to focus on managing activities and thus being able to control and to minimisie cost in each step of the production cycle.

activity control
Activity control

ABCM – Activities consume costs, the basis!

Can lead to an effecient overlook of value adding and non-value adding activities

Green=value adding. Red=not value-adding. White dots=exchange time White stripes=hardening




For Marcus Komponenter it is of great importance to deliver products fast and with great ”correctness”, since the products are relatively difficult to technically differentiate. Thus, it is necessary to adapt to a JIT-concept.

JIT- a ”pull” system

Right amount of products is to be produced at the right time. The demand creates the pulling mechanism throughout the production.


Lower storage levels and smaller batch sizes makes JIT possible as it visualises problems within the production where, consecutively, continuos improvements in the production can take place.

for competition quality and time
…for competition, quality and time

Reduces costs

Minimizes storage due to that the customer wants/gets the product directly. Also reduces waste since what is being produced is actually needed.

Shorter throughput time

This, since only what needs to be produced is produced, thus avoiding queues in the production.

Competition enhancing

Shorter throughput time and faster reaction to customer´s wants gives a competitive advantage

Total quality management (TQM) should permeate the work.

- Minimise mistakes, maximising quality

marcus has room for improvements
Marcus has room for improvements
  • Reduce exchange time, will make it possible to produce smaller batches  working towards JIT
  • Smaller batches will give faster throughput time
  • More alike products could reduce exchange time  more extensive production planning!