A Stochastic Approach for Product Costing in Manufacturing Processes

Nowadays, manufacturing companies are characterized by complex systems with multiple products being manufactured in assembly lines. In such situations, traditional costing based on deterministic cost models cannot be used. This paper focuses developing a stochastic approach to that considers the variability process cycle time of different workstations line. provides range values for product costs, allowing better perception risk associated these costs instead providing single value cost. The confidence interval mean and use quartiles one three as lower upper estimates proposed include systems. analysis outliers some statistical tests included approach, which was applied tier 1 company automotive industry. probability distribution possible bottleneck’s showcase all considering uncertainty. A model allows margins optimization opportunities well investment appraisal quotation activities.