Cost-benefit assessment of manufacturing system using comprehensive value flow analysis

Jingchao Sun, Hongming Na, Tianyi Yan, Zichang Che, Ziyang Qiu, Yuxing Yuan, Yingnan Li, Tao Du, Yanli Song and Xin Fang

Applied Energy, 2022, vol. 310, issue C, No S0306261922000812

Abstract: The comprehensive assessment of the performance of production system is a crucial activity for the implementation of sustainable production practices for the manufacturing industry. The existing relevant assessment methods are not comprehensive enough, especially in terms of material, energy, environment and economics. They lack specific economic performance indicators based on industrial systematic analysis, and couldn’t give a clear explanation for the comprehensive value flow in the production process. This paper proposes a novel assessment method, called Comprehensive Value Flow Analysis, which aims to describe and classify activities in the network of material, energy, environment and economics according to systematic energy saving and lean production theory. The drawing method of comprehensive value flow and a new cost-benefit indicator named advanced cost-profit ratio are proposed for identifying quantitatively the criticalities related to activities, processes, systems, technologies, etc. And significant suggestions for the improvement strategies implementation are given. A case study of a typical iron and steel enterprise has been evaluated using this method. Moreover, it successfully identifies the issues about energy structure, production structure and technologies application with a global perspective by explicating the comprehensive value flow and analyzing the relevant indicators, and then offering some valuable suggestions for sustainable development. The analysis highlighted that every enterprise has its own marginal benefits according to the production status and market economy. In summary, it is favorable to make real and effective decisions on improvement for the comprehensive benefits of enterprises.

Keywords: Advanced cost profit ratio; Manufacturing system; Comprehensive value flow analysis; Marginal benefit; Cost benefit (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261922000812
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:310:y:2022:i:c:s0306261922000812

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2022.118604

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().