Manufacturing costs as a decisionsupport in production developoment and relocation issues - a case study at a supplier to the automotive industry

Summary, in English

This paper will present a case study at a Swedish subcontractor, were a performance driven manufacturing cost model is used to analyse different production development scenarios in relation to sourcing. The result shows that production performance in terms of downtime, speed rate and quality losses will have a significant impact on manufacturing costs. The cost model was used to obtain cost scenarios for different offshoring alternatives serving as a decision support for the company management. Based on these scenarios they decided not to offshore production, instead they realized the potential of developing the Swedish site according to the proposed scenario.