Patent ID: 7444307
Filing Date: 2008-10-28
Classification: G06Q

Abstract:
1. A computer-readable storage medium having a set of instructions stored therein, which when executed by the computer causes the computer to perform a method for calculating an economic value created by a manufacturing process for manufacturing products produced in a plurality of production units 1 , 2 , . . . , m, . . . , n−1, and n, the production units respectively consuming ingredient materials Y wherein a product X said method comprising the steps of: a) calculating an aggregate cost of manufacture of each product by: b) establishing a predetermined threshold for the difference between a previous cost of an ingredient material Y and the aggregate cost of manufacture of a product X that is used as an ingredient material Y; c) if a cost change occurs that affects the aggregate cost of manufacture of the product X, then comparing the cost of ingredient materials Y of the ingredients list for all production units to the aggregate cost of manufacture of each product X that is used as an ingredient material Y to determine each affected ingredient material Y; d) using the production mix for each production unit m, recalculating the aggregate cost of manufacture of each product X e) for each affected ingredient material Y that is used by a production unit to manufacture a product X, calculating a difference between the previous cost of the ingredient material Y and the aggregate cost of manufacture of the product X that is used as an ingredient material Y, the fixed cost and the variable cost being calculated independently of each other; f) if the difference between the previous cost of the ingredient material Y and the recalculated aggregate cost of manufacture of the product X exceeds the predetermined threshold, then replacing the previous ingredient cost with the recalculated aggregate cost of manufacture of the product X; g) recalculating aggregate costs of manufacture for all affected products; h) if the difference between the previous cost of the ingredient material Y and the recalculated aggregate cost of manufacture of the product X exceeds the predetermined threshold, then repeating steps f) and g) until the difference is less than or equal to the predetermined threshold; i) selecting at least one parameter, the at least one parameter comprising a customer, a sales region, a product grade or a market segment; j) calculating a sales volume and a net price related to the at least one parameter; k) using results of steps g) and j), calculating a manufacturing contribution related to the at least one parameter; l) using results of step k), calculating an after tax operating income related to the at least one parameter; and m) using the results of steps a) through l), calculating an economic value for the at least one parameter, thereby determining the economic value created by the manufacturing process.