Cost of Products Manufactured in Organizational Similar Groups – Case Study

Abstract

The paper presents selected aspects of production management related to the product customization. Product customization leads to an exponentially increased number of product and process variants, which exaggerates the difficulties in manufacturing in make-to-order production systems. The direct consequence of product customization on production is evidenced by an exponentially increased number of process variants, such as diverse machines, tools, fixtures, setups, cycle times and labors. In the production of mass customization a very important issue is changeovers times. In spite of applying modern management techniques, setup time still plays an important part in the production cycle time. The case study includes the manufacture of roller shutters. This paper presents a method of cost calculation taking into account the manufacturing roller shutters in organizational similar groups. The main purpose of this method is to identify range of costs of elements. The method was validated in the conditions of best practice production for high-variety production.