Modeling Effective Budgeting and Production For Sustainable Competitive Advantage: Evidence from Kufa Cement Factory, Iraq

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Time vectors for the activities of the rubber conveyor department events (Source: Authors’ own research)

Activities/events	Receipt of the stone/min	Stone transfer/min	Stone count/min	Total/min
Production	0.5	0.5	0.4	1.4
Mechanical maintenance	2	8	3	13
Electrical maintenance	0.7	1	0.6	2.3

Total planned costs for the product (Source: Authors’ own research)

Department	Amount
The total planned cost of the quarry department	12,773 dinars/ton
The total planned cost of the rubber conveyor department	3399 dinars/ton
The total planned cost of the raw materials mills department	16,451 dinars/ton
The total planned cost of the department of furnace	26,207 dinars/ton
The total planned cost of the cement mills division	15,650 dinars/ton
The total planned cost of the packing department	8623 dinars/ton
Total planned costs for the product	83,103 dinars/ton

The planned cost of the quarry department (Source: Authors’ own research)

Activity	Amount of time required for activities/min	Cost per unit time	Planned costs for activities
Production	7	541	3787
Mechanical maintenance	14	481	6734
Electrical maintenance	4	488	1952
The breaker	1	300	300
Total	26	1810	12,773

Time drivers for the events of the packing department activities (Source: Authors’ own research)

Activities/events	Receipt of clinker/min	Mixing clinker with gypsum/min	Cement crushing and grinding/min	Total/min
Production	1.25	1.75	2	5
Mechanical maintenance	2	7	2	11
Electrical maintenance	0.75	1.5	1.25	3.5
Precipitators	0	1.75	2	3.75

Time confrontations for the events of the activities of the cement mills department (Source: Authors’ own research)

Activities/events	Conversion of cement to silo	Bagging of cement	Transportation of cement to suppliers	Total
Production	0.4	0.6	3	4
Mechanical maintenance	1	1	2	4
Electrical maintenance	0.4	0.4	0.5	1.3

Time vectors for the events of the raw materials mills department activities (Source: Authors’ own research)

Activities/events	Receipt of raw materials/min	Mixing and grinding of materials/min	Putty transfer/min	Total/min
Production	0.5	1.6	0.4	2.5
Mechanical maintenance	3	9	2	14
Electrical maintenance	0.75	1	0.5	2.25
Water station	0.75	0.75	0	1.5

Time vectors for the events of the quarry department activities (Source: Authors’ own research)

Activities/events	Cover dust detection/min	Crushing and conveying of stone/min	Drying and compaction of the stone/min	Crushing and conveying of stone to the conveyor/min	Total/min
Production	5	1.5	0.5	0	7
Mechanical maintenance	2	4	2	6	14
Electrical maintenance	0.5	1	0.5	2	4
The breaker	0	0	0	1	1

The total planned cost according to the practical capacity of the quarry department (Source: Authors’ own research)

Activity	Amount of time required for activities/min (1)a	Planned costs for activities (2)a	Production quantity/ton (3)	Total working energy per minute (1 × 3)	The total planned cost according to the practical energy in dinars (2 × 3)
Production	7	3787	657,310	4,601,170	2,489,232,970
Mechanical maintenance	14	6734	657,310	9,202,340	4,426,325,540
Electrical maintenance	4	1952	657,310	2,629,240	1,283,069,120
The breaker	1	300	657,310	657,310	197,193,000
Total	26	12,773	657,310	17,090,060	8,395,820,630

Theoretical and practical capacity of the activities – Quarry department (Source: Authors’ own research)

Activity	The number of workers (worker)	The number of days (day)	Work hours (hours)	Theoretical energy (minutes)	Practical energy (minutes)
Production	65	22	8	8,236,800	6,589,440
Mechanical maintenance	64	22	8	8,110,080	6,488,064
Electrical maintenance	18	22	8	2,280,960	1,824,768
Crusher	44	22	8	5,575,680	4,460,544

Planned costs for the production department for 2022 AD (Source: Authors’ own research)

Production department	Activity	Direct costs	Indirect costs	Total cost of the activity
Quarry	Production	2,344,056,878	1,220,311,122	3,564,368,001
	Mechanical maintenance	2,051,049,769	1,067,772,232	3,118,822,001
	Electrical maintenance	586,014,220	305,077,781	891,092,000
	The breaker	879,021,329	457,616,671	1,336,638,000
	Total costs	5,860,142,196	3,050,777,806	8,910,920,002
Rubber conveyor	Production	1,144,048,606	0	1,144,048,606
	Mechanical maintenance	1,016,932,094	0	1,016,932,094
	Electrical maintenance	381,349,535	0	381,349,535
	Total costs	2,542,330,236	0	2,542,330,236
Raw material mills	Production	4,310,235,864	1,275,830,474	5,586,066,338
	Mechanical maintenance	3,771,456,381	1,116,351,664	4,887,808,045
	Electrical maintenance	1,077,558,966	318,957,618	1,396,516,584
	Water station	1,616,338,449	478,436,428	2,094,774,877
	Total costs	10,775,589,660	3,189,576,184	13,965,165,844
Ovens department	Production	9,682,351,565	1,420,061,194	11,102,412,759
	Mechanical maintenance	8,472,057,620	1,242,553,544	9,714,611,164
	Electrical maintenance	2,420,587,891	355,015,298	2,775,603,190
	Precipitators	3,630,881,837	532,522,948	4,163,404,785
	Total costs	24,205,878,913	3,550,152,984	27,756,031,897
Cement mills	Production	2,968,215,208	1,019,060,166	3,987,275,374
	Mechanical maintenance	2,597,188,307	891,677,645	3,488,865,952
	Electrical maintenance	742,053,802	254,765,041	996,818,843
	Precipitators	1,113,080,703	382,147,562	1,495,228,265
	Total costs	7,420,538,020	2,547,650,414	9,968,188,434
Packing	Production	2,540,433,357	648,577,556	3,189,010,913
	Mechanical maintenance	2,258,162,984	576,513,383	2,834,676,367
	Electrical maintenance	846,811,119	216,192,519	1,063,003,638
	Total costs	5,645,407,460	1,441,283,458	7,086,690,918
	The total costs	56,449,886,485	13,779,440,846	70,229,327,331

Planned final product cost per ton (Source: Authors’ own research)

Statement	Details	Total
Total planned production costs: "The planned production costs are based on the expected production quantity for 2022 and according to table (13)"
Planned costs of production	83,103 dinars/ton × 1,000,000 tons/year	83,103,000,000
Combined: The added costs “represent additional costs for the development of a production line and replacement of new equipment and devices”
Introducing a new production line	1,110,000,0001
Equipping mechanical precipitators	20,000,0002
Steps switch innovation	5,000,0003
Total costs added	---	1,135,000,000
Subtracted: Excluded costs “represent financial savings to avoid the costs of sediment disposal and recycling of raw materials. And the cost differences of switching from one type of fuel to another, as well as avoiding the costs of obsolete devices”
Reuse/recycle CKD material	1,306,934,3563
Substitution of fuel from oil to gas	19,250,000,0004
Replacing obsolete devices	474,000,0005
Total costs excluded	---	(21,030,934,356)
Planned final costs of production	---	63,207,065,644
Planned final product cost per ton	63,207,065,644 dinars/1,000,000 tons	63,207 dinars/ton

Planned unit time cost for production departments (Source: Authors’ own research)

Production department	Activity	The total cost of the activity	Practical energy of activity/minute	Activity time unit cost (dinar/min)
Quarry	Production	3,564,368,001	6,589,440	541
	Mechanical maintenance	3,118,822,001	6,488,064	481
	Electrical maintenance	891,092,000	1,824,768	488
	The breaker	1,336,638,000	4,460,544	300
Rubber conveyor	Production	1,144,048,606	3,628,800	315
	Mechanical maintenance	1,016,932,094	6,082,560	167
	Electrical maintenance	381,349,535	1,115,136	342
Raw material mills	Production	5,586,066,338	6,386,688	875
	Mechanical maintenance	4,887,808,045	6,589,440	742
	Electrical maintenance	1,396,516,584	1,216,512	1148
	Water station	2,094,774,877	2,433,024	861
Ovens department	Production	11,102,412,759	14,192,640	782
	Mechanical maintenance	9,714,611,164	11,759,616	826
	Electrical maintenance	2,775,603,190	2,635,776	1053
	Precipitators	4,163,404,785	3,750,912	1110
Cement mills	Production	3,987,275,374	5,879,808	678
	Mechanical maintenance	3,488,865,952	5,372,928	649
	Electrical maintenance	996,818,843	2,433,024	410
	Precipitators	1,495,228,265	1,520,640	983
Packing	Production	3,189,010,913	10,441,728	305
	Mechanical maintenance	2,834,676,367	1,926,144	1472
	Electrical maintenance	1,063,003,638	912,384	1165

Idle energy cost and its ratio to resource groups (Source: Authors’ own research)

Resource groups (departments)	The cost of idle energy	Idle energy ratio
Quarry	515,099,372	5.78%
Rubber conveyor	308,133,545	12.12%
Raw material mills	3,151,759,034	22.56%
Ovens	10,529,908,728	37.93%
Cement mills	-318,713,066	3.19%
Packing	1,418,706,788	20%
The total	15,604,894,401	22.21%

Time vectors for the events of the furnaces department activities (Source: Authors’ own research)

Activities/events	Receipt of putty/min	Maturation and burning of the putty/min	Clinker leveling/min	Total/min
Production	0.6	0.75	1.2	2.55
Mechanical maintenance	5	15	4	24
Electrical maintenance	0.75	1.6	0.5	2.85
Precipitators	0	1.25	0	1.25