A new approach for cost modelling and performance evaluation within operations planning

The industrial organizations need to seek continuously for excellence in their processes to promote their competitiveness. Therefore effective operations planning, control and evaluation will maximize customer value creation by eliminating several types of waste, common in almost all organizations. The dramatic changes on operations led by continuous process improvements requires also changes in traditional performance evaluating approaches so that they can be adapted to a new production environment. Aligned with the implementation of operational improvements in core processes, we propose a new approach in the implementation of cost modelling and performance evaluation system. This approach is not limited to a single company but can be extended to global value streams observed within collaborative networks.