Activity-based costing and process modeling for cost-conscious product design: A case study in a manufacturing company

Tornberg, Katja; Jämsen, Miikka; Paranko, Jari

doi:10.1016/s0925-5273(00)00179-1

Cited by 92 publications

(34 citation statements)

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“…Compatible process alternatives are then evaluated based on a rough cost estimation such as resource based costing [10], [11]. Detail costing methods, such as ABC costing [12], are not applicable at conceptual stages since such methods require detail data about the design [10], [11]. In terms of process planning for quality, the classical capability index, which is defined as the ratio of dispersion to tolerance (i.e.…”

Section: Manufacturing Process Planning At Conceptual Design Phasesmentioning

confidence: 99%

Manufacturing Process Planning in Set-Based Concurrent Engineering Paradigm

Kerga

Taisch

Terzi

2012

Product Lifecycle Management. Towards Knowledge-Rich Enterprises

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Abstract. The integration of manufacturing planning activities into early design decisions is paramount. Manufacturing constraints and opportunities should be investigated early in a product development (PD) stages to launch products successfully. Set-based concurrent engineering (SBCE) paradigm is pronounced in literature and believed to form the foundation of lean thinking in PD. In SBCE, alternative product-subsystems are explored simultaneously and weak design choices are progressively eliminated as more knowledge about manufacturability becomes known. However, there is a methodological gap on how to execute SBCE in practice and integrate manufacturing process planning. This paper aims at conceptualizing the requirements to start manufacturing planning in the realm of SBCE paradigm. At the same time, the paper proposes a dialogue mechanism through which designers and manufacturing process planners are able to explore and evaluate alternative conceptual designs and process plans in parallel. Moreover, the methodology enables design and process knowledge to be effectively integrated for a better decision making.

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Section: Manufacturing Process Planning At Conceptual Design Phasesmentioning

confidence: 99%

Manufacturing Process Planning in Set-Based Concurrent Engineering Paradigm

Kerga

Taisch

Terzi

2012

Product Lifecycle Management. Towards Knowledge-Rich Enterprises

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“…We may create a cause and effect relationship between different activities and resource consumption, which helps product costing as well as cost control efforts (Swenson, 1995;Kock, 1995). There are several cases of successful implementation of ABC method (Bras & Emblemsvag, 1995;Ong, 1995;Foster & Swenson, 1997;Goddard & Ooi, 1998;Greene & Metwalli, 2000;Anderson, 2002;Tornberg, 2002;Chan, 2003;Lievens et al, 2003;Tsai et al, 2014;Kaplan et al, 2015;Shigaev, 2015). One of the primary concerns on implementation of ABC method is to select appropriate cost drivers (Babad & Balachandran, 1993) and many people have tried to use multiple criteria decision making techniques to detect efficient cost drivers.…”

Section: Introductionmentioning

confidence: 99%

A state-of-art review on activity-based costing

Khodadadzadeh¹

2015

10.5267/j.ac

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Activity-based costing (ABC) is a method, which identifies activities in a firm and assigns the expenses of each activity with resources to all products and services based on the real consumption by each. This method allocates more overhead costs into direct expenses compared with conventional method. ABC method is normally used for costing as well as monitoring different activities, which involves tracing resource consumption. This paper presents a survey on advances of ABC based method. The study has discussed the advantages and disadvantages of the implementation of ABC based method in different industries. The survey also discusses recent advances on time driven ABC method in health care industries.Growing Science Ltd. All rights reserved. 5

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“…They derived a technique for detecting an appropriate holding cost per unit and time unit, h, which can be implemented in existing heuristics/formulas based on the ideas behind ABC. Tornberg et al (2002) investigated the possibilities of ABC and the modeling of design, purchasing and manufacturing processes in providing useful cost data for product designers. The idea was that ABC and process modeling might could provide an effective tool for the evaluation of various design options.…”

Section: Introductionmentioning

confidence: 99%

A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

Faraji¹,

Maghari²,

Niloufar³

2015

10.5267/j.msl

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An opportunity to investigate the technical and organizational effect of management accounting system changes has appeared with companies' adoption of activity-based costing (ABC). This paper presents an empirical investigation to study the effects of ABC system for case study from food industry in Iran. From this case, the paper develops a framework for assessing ABC implementation and hypotheses about factors that influence implementation. The study detects five cost centers and for each cost center, it determines different cost drivers. The results of our survey has detected that implementation of ABC system not only helps precise allocation of overhead costs but also helps internal management companies for better planning and control of production, making better decisions for company's profits.Growing Science Ltd. All rights reserved. 5

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Activity-based costing and process modeling for cost-conscious product design: A case study in a manufacturing company

Cited by 92 publications

References 1 publication

Manufacturing Process Planning in Set-Based Concurrent Engineering Paradigm

Manufacturing Process Planning in Set-Based Concurrent Engineering Paradigm

A state-of-art review on activity-based costing

A framework for assessing cost management system changes: the case of activity-based costing implementation at food industry

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