Calculation of Industrial Services
- A Case Study at SKF
Background and problem discussion: We believe it is of high interest studying potential problems with costing industrial services based on the fact that literature have stated that manufacturing are moving towards becoming more service oriented, but at the same time literature is rather limited in terms of discussing costing of services. Based on this discussion we have decided on conducting an explorative case study at SKF. The knowledge that SKF have stated that they are shifting towards becoming more service oriented in combination with fact that they for long have played an important role in Swedish accounting practise makes them an interesting example when searching for potential problems within calculation industrial services. From our background and problem discussion, we have stated the following research question: What potential problems might exist in the process of calculating industrial services? Purpose: The primary purpose with this thesis is via an explorative case study at SKF identify and exemplify potential problem in the process of calculation industrial services in a manufacturing company moving towards becoming more service oriented. The secondary purpose is via a theoretical framework categorise the potential problems in a structured manner. Method: As our study focuses on a relatively limited research area we have chosen an explorative approach. We have chosen a case study as research method based on the fact that our study considers a current phenomenon; manufacturing companies that moving towards being more service oriented, and the fact that we have the possibility to focus on a well defined system; the calculation process. Empirical findings and conclusions: From literature studies and pilot interviews at SKF we have created a model for our empirical findings focusing on; direct cost, relations cost, overhead cost and profit margin. Beside these overall areas we have also focused on definition of services, practical guidelines and standard cost. Through our empirical findings and analysis we have identified and deduced problems in the calculation of industrial services to all of our seven specified areas. We believe that our findings could be interesting for both practitioners and for future research regarding calculation of industrial services.