Joint production

The co-products (including composite production or coproduction ) is in the business administration , a manufacturing method , in the in the production process besides the main product inevitably simultaneously and at least one by-product is obtained. The resulting products are called co- products .

General

The production of the main products is intentional and corresponds to the purpose of the business , while the by-products that arise must inevitably be accepted. For chemical / physical / technical reasons, the by-products occur simultaneously and inevitably with the production of the main product, so that the manufacturer is a multi-product company . By-products, such as waste , immissions or pollutants , can be undesirable , but are by-products of the production process that cannot be avoided for technical and / or economic reasons.

There is mostly co- production in the near-natural extraction and manufacture of agricultural products , raw materials , natural products and above all in the chemical and pharmaceutical industry .

history

Adam Smith already mentioned in his main work The Prosperity of the Nations of March 1776 that the hunters of North America, as a result of the joint production of meat and skin, produced more raw materials for clothing than they needed themselves (unwanted overproduction ). In 1826 Johann Heinrich von Thünen dealt with the parallel production of agricultural products in his Thünenschen Ringen . He emphasized that it was often an advantage to have more than one production activity in each ring. This results from the fact that a product ( English output ) of such an activity can be a basic material ( English input ) in another. According to Thünen, in the first ring there is not only the cultivation of vegetables and fruits, but also the production of milk. However, cow husbandry needs hay for fodder and straw to lay out the stalls. In this ring, grain is produced only because of the straw. John Stuart Mill classified 1848, the joint production ( English joint production ) as an anomaly, which only sometimes vorkomme while composite costs ( english joint costs ) triggering. William Stanley Jevons vehemently contradicted this in 1871 and classified joint production as the rule of goods production.

Karl Marx is considered to be one of the first authors who in 1867 recognized the connection between undesirable by-products in the form of waste, sewage and emissions and the resulting environmental pollution and even saw the possibility of recycling waste and recovering raw materials if this brought price advantages. In 1890, Alfred Marshall first distinguished between fixed and flexible joint production. He found that there are few cases where the cost of producing both products is exactly the same as one.

Eugen Schmalenbach introduced the word joint production into German business administration in 1919. In 1920 Arthur Cecil Pigou recognized a negative external effect in undesirable by-products , from which he derived the necessity of state intervention . In 1932 Heinrich von Stackelberg transferred the cost theoretical knowledge about the one- product company to joint production, which he called "cumulative production". In 1943 von Stackelberg classified the previous theory of coupled production as an important chapter in economics . In 1955, Paul Riebel made it clear that joint production is widespread in practice, especially in the chemical industry. Piero Sraffa did his best to further develop the theory of joint production, which had been gradually emerging up to now, and from 1960 onwards, among other things, dealt with the fact that a machine that had aged through production was a by-product of the product made with it, because the interest in joint production was not so great on the well-known examples of sheep's wool and mutton.

species

Today a distinction is made between fixed and flexible joint production. Only the proportions of the by-products can be varied within certain limits or not. With fixed joint production , the quantity ratio between main and by-products is fixed, with flexible joint production , the quantities can be varied to a limited extent. Since marginal costs can be determined with flexible joint production , an equilibrium price can be determined here.

Paul Riebel distinguishes between still unused co-products, which after the process of removing itself ( waste heat and Abkälte , vapors ), non-recyclable and only effort to eliminating waste and recyclable waste (recycling).

Examples

The processing of many natural products or raw materials inevitably results in the following by-products:

Raw material	Main product	Byproducts
Sugar beet	Beet sugar	Molasses , carbolime and beet pulp
Sugar cane	Cane sugar	Molasses , bagasse
Hard and soft cheese production	cheese	Sweet whey , sweet whey powder
Quark production	Quark	Sour whey , whey cheese
Biomass	Ethanol	Dry liquor
Thomas method	steel	Thomas flour
Beer making	beer	Marc
Winemaking	Wine	Pomace brandy

In the blast furnace arise next pig iron also inevitably stack gases , slag and waste heat. In petroleum refineries , the refinery gas is a typical by-product of petroleum refining. By-products of sawdust are pressed briquettes or pellets for heating purposes and the raw material for chipboard . In terms of quantity, the predominant by-product of vegetable oil production is the press cake , e.g. B. Rapeseed cake .

Further examples of joint productions are the

• Sodium hydroxide production by chlor-alkali electrolysis with the by-products chlorine and hydrogen ,

${\displaystyle \mathrm {2NaCl+2H_{2}O\rightarrow 2NaOH+Cl_{2}+H_{2}} }$

• Phenol synthesis using the cumene hydroperoxide process with the by-products phenol and acetone ,
• Inevitable production of gasoline , diesel fuel and heavy oil when processing petroleum ,
• Production of extraction meal and vegetable oil during extraction from oilseeds ,
• Production of glycerine in the production of biodiesel ,
• Generation of electricity and heat in the thermal power station ,
• Extraction of residual wood from waste from timber production
• Production of bran and semolina in the production of flour from cereals ,
• simultaneous transport of passengers and cargo when operating a commercial aircraft ,
• Obtaining various proteins in the context of plasma fractionation .

calculation

In the calculation, no costs can be assigned to the individual co-products ( cost units ) according to the cost allocation principle . In the context of cost unit accounting , therefore, the sustainability principle is used as an approximation . The residual value method , market value calculation and the retrograde method were developed for this purpose. If it is not possible to differentiate between main products and by-products, the co- product costing is based on the market value calculation .

${\displaystyle {\text{Stückkosten des Hauptprodukts}}={\frac {{\text{Gesamtkosten}}-{\text{Erlöse der Nebenprodukte}}}{\text{Menge der Hauptprodukte}}}\,}$.

Co-products can both generate costs and generate revenues in business terms. In a chemical company, for example, co-products can cause costs due to the responsibility for disposal or environmental protection. The other way around, for example, heat that arises from the production process can be used for a company's hot water system. In this way factual bundling effects can arise. If the by-products are sold for further processing , the total costs of the main products can be relieved of the proceeds from the by-products. Co-products can therefore even the addition of waste reduction profit increase and the market position of a company by a wider range of products strengthen.

Recent developments

The co-production theory deals, among other things, with undesired co-products, which it identified as the cause of negative external effects , which environmental economics took up. Unwanted by-products are, for example, carbon dioxide and chlorofluorocarbons , which, as global warming potentials, are mainly responsible for the greenhouse effect . Its negative external effect is that it places the cost of cleaning up the environmental damage on society . On the one hand, it is to be examined in general to what extent process technologies in co-production can be improved in order to minimize or avoid undesired by-products and, on the other hand, whether the consequences of environmental policy measures on industrial areas that are linked by co- production impair the industry's profit opportunities .

See also

• Atomic economy

literature

• Stefan Baumgärtner: Ambivalent Joint Production and the Natural Environment. An Economic and Thermodynamic Analysis. Heidelberg, New York: Physica-Verlag, 2000.
• Paul Riebel: The joint production. Operational and market problems . Habilitation thesis from February 17, 1954, Nuremberg University of Economics and Social Sciences . Cologne, Opladen: Westdeutscher Verlag, 1955, 243 pages (= publications of the Schmalenbach Society, Volume 23)

Individual evidence

1. ↑ Peter R. Preißler, Controlling-Lexikon , 1995, p. 126
2. ↑ Anja Oenning, Theory of operational joint production , 1997, p. 13 f.
3. ^ Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations , 1776/1994, p. 141
4. ↑ Johann Heinrich von Thünen, The isolated state in relation to agriculture and national economy , 1826, p. 17
5. ^ John Stuart Mill, Principles of Political Economy , 1848, p. 108
6. ^ William Stanley Jevons, Theory of political economy , 1871/1924, p. 198
7. ^ MEW , Volume 25, Das Kapital , 1867, p. 119
8. ^ Alfred Marshall, Principles of Economy , 1890/1905, p. 388 ff.
9. ^ Alfred Marshall, Principles of Economy , 1890/1905, p. 389
10. ↑ Eugen Schmalenbach, cost calculation I , in: ZfhF , 1919, p. 265 f.
11. ↑ Arthur Cecil Pigou, The Economics of Welfare , 1920/1929, p. 186
12. ^ Heinrich von Stackelberg, Fundamentals of a pure cost theory , 1932, pp. 53 ff.
13. ^ Heinrich von Stackelberg, Grundzüge der Theoretischen Volkswirtschaftslehre , 1943, p. 26
14. ^ Paul Riebel, Die Kuppelproduktion - Betriebs- und Marktprobleme , 1955, p. 29 ff.
15. ↑ Piero Sraffa, Production of Commodities , 1960, p. 63
16. ↑ Springer Fachmedien Wiesbaden (ed.), Compact Lexicon Economic Theory , 2013, p. 247
17. ^ Josef Kloock , Kuppelproduktion , in: Wolfgang Lück (Hrsg.), Lexikon der Betriebswirtschaft , 1983, p. 696 f.
18. ^ Alfred Marshall, Handbuch der Volkswirtschaftslehre , 1905, p. 388 f.
19. ^ Paul Riebel, Die Kuppelproduktion - Betriebs- und Marktprobleme , 1955, p. 126 ff.
20. ↑ Helmut Schaefer (Ed.), VDI-Lexikon Energietechnik , 1994, p. 1014
21. ^ Josef Kloock, Kuppelproduktion , in: Wolfgang Lück (Hrsg.), Lexikon der Betriebswirtschaft , 1983, p. 696 f.
22. ↑ Carl-Christian Freidank (Ed.), Vahlens Großes Auditing-Lexikon , 2007, p. 751 f.
23. ↑ Georg Müller-Fürstenberger, Kuppelproduktion: A theoretical and empirical analysis using the example of the chemical industry , 1995, p. 7