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Economic research - Ekonomska istraživanja, Vol. 25 No. 4, 2012.

Preliminary communication

OVERALL COST EFFICIENCY

Matjaž Novak
Egon Žižimond

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page 1033-1050

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Abstract

Considering the present state of the art among the production optimization frameworks, the Overall Equipment Efficiency methodology is the most popular one. However, this methodology approaches production optimization only from the technology point of view and ignore the economic perspective of optimization. This is why we developed a new key performance indicator Overall Cost Efficiency aimed at measuring the cost efficiency of a production process in real time. Its application is based on the Overall Equipment Efficiency measurements and is convenient for application in industrial management praxis. We have used an ordinary mathematical modelling approach combined with descriptive microeconomic analysis techniques.

Keywords

Technical efficiency; Cost efficiency; Productivity; Microeconomics; Industrial management

Hrčak ID:

97038

URI

https://hrcak.srce.hr/97038

Publication date:

1.12.2012.

Article data in other languages: croatian

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