Towards A Holistic Cost Estimate Of Factory Planning Projects

authored by: Leonard Rieke, Peter Nyhuis, Luca Philipp
Abstract: As an interdisciplinary and complex task, factory planning lays the foundation for the economic efficiency of factories. Factory planning projects significantly influence the financial situation of production companies due to their high capital requirements and long lifetime. Today's inaccurate basis for decision-making in cost estimation leads to serious financial challenges in the future. Costs must be estimated with sufficient reliability to avoid misinvestments. There is currently a need for research for a holistic and systematic approach. This is partly due to the many requirements such an approach must meet. In this context, the paper aims to determine the requirements for a holistic approach to cost estimation in the early phase of factory planning projects. Based on a literature review, four key requirements for a holistic cost estimate could be identified and prepared for an approach. This includes the joint consideration of the interactions between spatial and process requirements. In addition, the early planning phase is challenging, in which little reliable information is available, but costs can still be sufficiently influenced. Furthermore, the operating costs during factory operation must be considered over and above the specific investment. With the help of various factors influencing factory design, scenarios should be generated and compared early to counter future opportunities and risks in the best possible way. These requirements can now be used for an approach to be developed that enables holistic cost estimates in the early phase of factory planning projects.
Organisation(s): Institute of Production Systems and Logistics
Factory planning
Type: Conference contribution
Pages: 459-470
No. of pages: 12
Publication date: 2023
Publication status: Published
Peer reviewed: Yes
ASJC Scopus subject areas: Mechanical Engineering, Management of Technology and Innovation, Industrial and Manufacturing Engineering, Strategy and Management
Sustainable Development Goals: SDG 9 - Industry, Innovation, and Infrastructure
Electronic version(s): https://doi.org/10.15488/15249 (Access: Open)