The purpose of this report is to survey Swedex AB’s production costs and to gather all info into a manageable calculation tool. This was made by time and motion studies, interviews of the personnel. All factors were gathered into an Excel chart.

The calculation was made according to an additional-charge-method that was considered to satisfy Swedex AB’s goal. This makes a complete-cost-estimate which is important when the selling price should cover the production costs. The blades were divided into different populations to facilitate the calculation work. The division was made with the production cost in consideration to minimize the risk of losing parameters.

The time and motion study, which is the basis of the calculation, was obtained by the group and gave insight of the saw blade production. Here it was discovered, what was said to be a bottleneck was not the case.

Swedex AB has a great amount of products in labour, this in opposite to the “just in time”-philosophy, but Swedex AB see’s this as a resource. This is seen as a utilization increaser, to keep up the production rate.

Swedex AB has a lot of old machines, but these have to be part of the calculation while they in a near future will be reinvested with new machines. An adjustment has been done to consider purchase price, second hand price and service/repair costs.