Costing and production planning using physical system theory—a case study of manufacturing of compression springs

Abstract This paper is an application of the principles and concepts of physical system theory to the costing and production planning of a multi-stage manufacturing system. A system model of the manufacturing of compression springs has been developed treating each production stage as a transformation process. The solution procedure for a forward flow system, like this, has been considerably simplified. The values of all the unknown variables can be determined by solving only one equation at a time. The steps for determining the values of ‘across’ and ‘through’ variables respectively have been outlined. The unit cost has been treated as an ‘across’ variable, and the volume of production is treated as a ‘through’ variable, Sensitivity analysis has been performed to identify the critical stages. The applicability of the approach to costing and production planning has been discussed. It has been emphasized that the modelling and analysis of multi-stage manufacturing systems will become simpler and more explic...

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