Parametric cost estimation based on activity-based costing: A case study for design and development of rotational parts

2008 ◽  
Vol 113 (2) ◽  
pp. 805-818 ◽  
Author(s):  
Li Qian ◽  
David Ben-Arieh
Keyword(s):  
Cost Estimation ◽  
Activity Based Costing ◽  
Design And Development ◽  
Rotational Parts ◽  
Parametric Cost Estimation

scholarly journals Improving competitiveness through the application of cost estimation models

2021 ◽  
Author(s):  
◽  
Prianca Naicker
Keyword(s):  
Life Cycle ◽  
Cost Estimation ◽  
Estimation Model ◽  
Project Life Cycle ◽  
Parametric Cost Estimation ◽  
Cost Estimation Model ◽  
Project Life ◽  
Estimation Models ◽  
Cost Estimation Models

Optimal costing decisions are required in order to ensure that organisations are globally competitive. The case study company is a global affiliate based in Durban, KwaZulu-Natal, South Africa and is involved in the manufacture and assembly of automobiles and automotive components. It was noticed that cost estimation models were only introduced at an advanced stage in the project life cycle. The concept of cost estimation and its application to improve various factors of a business has been investigated previously and existing evidence could be utilised to support further study in the field. Therefore, the aim of the study was to improve the quality of sourcing decisions by means of the introduction of a parametric cost estimation model and business process re-engineering. A case study approach was adopted. The first objective was to develop an overview of the current sourcing processes and understand the factors which influenced sourcing decisions. The methods used included the generation of a Standard Operating Procedure (SOP) for the current sourcing process, an online survey and interviews. It was concluded that there was a need to develop a detailed SOP which identified and included all impacted departments. The second objective was to redesign the sourcing process. It was concluded that the current sourcing processes did not take cost estimates into account at the early stages of the project life cycle and the inability to accurately predict costs consequently negatively impacted the cost competitiveness of the organisation. The third objective was to develop and implement a parametric cost estimation model. The model was created using Microsoft Excel. The results revealed that the Parametric Cost Estimation Model (PCEM) needed to focus on small injection moulded components as they were the highest contributor to the high Cost Index Manufacturing (CIM), which made the organisation globally uncompetitive. The results revealed that with the introduction of the PCEM and the revised sourcing process, the selected component was competitively priced.Recommendations were made for continuous process improvement and a roadmap for the further introduction of cost estimation models. Further research could also be conducted to develop an optimal cost estimation model based on analogous costing techniques or to develop a comprehensive database for other complex commodities.

Time Driven Activity Based Costing (TDABC) Model for Cost Estimation of Assembly for a SSI

2018 ◽  
Vol 6 (2) ◽  
pp. 56-69
Author(s):  
Ashwin Bhimrao Ganorkar ◽  
Ramesh Ramchandra Lakhe ◽  
Kamalkishor N. Agrawal
Keyword(s):  
Cost Estimation ◽  
Low Cost ◽  
Small Scale ◽  
Activity Based Costing ◽  
New Approach ◽  
Common Activity ◽  
Time Required ◽  
The Cost ◽  
Small Scale Industries

Costing is an important issue in a competitive world. Many companies had adopted TDABC for better cost visibility. Assembly is very common activity in the small scale industries (SSI). In a SSI, many operations like riveting, drilling, fastening, loosening and tightening, hammering, labeling, aligning, etc. are carried out at the time of assembly. Also the sequence and the time of the operating vary for each product. Therefore, it is difficult to estimate the cost of complex assembly. This paper proposed a time driven activity based costing (TDABC) model to estimate the cost of assembly for SSI. TDABC uses time equations to estimate the time required for an activity. A new approach to develop the time equation using maynard operation sequence technique (MOST) is presented. This paper also presents the modification in the time equation to handle the complexity of the activity. The application of the model is presented with the case study. The cost analysis helps to identify the opportunities for low cost assembly solution.

A case study on use of personas in design and development of an audit management system

2007 ◽  
Author(s):  
Pallavi Dharwada ◽  
Joel S. Greenstein ◽  
Anand K. Gramopadhye ◽  
Steve J. Davis
Keyword(s):  
Management System ◽  
Design And Development ◽  
Audit Management

Biorefinery implementation for recovery debottlenecking at existing pulp mills- Part II: Techno-economic evaluation

TAPPI Journal ◽  
2012 ◽  
Vol 11 (8) ◽  
pp. 17-24 ◽  
Author(s):  
HAKIM GHEZZAZ ◽  
LUC PELLETIER ◽  
PAUL R. STUART
Keyword(s):  
Cost Estimation ◽  
Process Model ◽  
Black Liquor ◽  
Pulp Mill ◽  
Value Added ◽  
Economic Assessment ◽  
Extraction Process ◽  
Estimation Methods ◽  
Precipitation Process

The evaluation and process risk assessment of (a) lignin precipitation from black liquor, and (b) the near-neutral hemicellulose pre-extraction for recovery boiler debottlenecking in an existing pulp mill is presented in Part I of this paper, which was published in the July 2012 issue of TAPPI Journal. In Part II, the economic assessment of the two biorefinery process options is presented and interpreted. A mill process model was developed using WinGEMS software and used for calculating the mass and energy balances. Investment costs, operating costs, and profitability of the two biorefinery options have been calculated using standard cost estimation methods. The results show that the two biorefinery options are profitable for the case study mill and effective at process debottlenecking. The after-tax internal rate of return (IRR) of the lignin precipitation process option was estimated to be 95%, while that of the hemicellulose pre-extraction process option was 28%. Sensitivity analysis showed that the after tax-IRR of the lignin precipitation process remains higher than that of the hemicellulose pre-extraction process option, for all changes in the selected sensitivity parameters. If we consider the after-tax IRR, as well as capital cost, as selection criteria, the results show that for the case study mill, the lignin precipitation process is more promising than the near-neutral hemicellulose pre-extraction process. However, the comparison between the two biorefinery options should include long-term evaluation criteria. The potential of high value-added products that could be produced from lignin in the case of the lignin precipitation process, or from ethanol and acetic acid in the case of the hemicellulose pre-extraction process, should also be considered in the selection of the most promising process option.

A Case Study on the Un-Used Capacity Assessment Using Time Driven Activity Based Costing for Magnetic Components

2020 ◽  
Vol 6 (1) ◽  
pp. 18-39
Author(s):  
Areena Zaini ◽  
Haryantie Kamil ◽  
Mohd Yazid Abu
Keyword(s):  
Historical Data ◽  
Manufacturing Sector ◽  
Type I ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Continuous Innovation ◽  
Magnetic Components ◽  
Alignment Process ◽  
Capacity Cost

The Electrical & Electronic (E&E) company is one of Malaysia’s leading industries that has 24.5% in manufacturing sector production. With a continuous innovation of E&E company, the current costing being used is hardly to access the complete activities with variations required for each workstation to measure the un-used capacity in term of resources and cost. The objective of this work is to develop a new costing structure using time-driven activity-based costing (TDABC) at . This data collection was obtained at E&E company located at Kuantan, Pahang that focusing on magnetic component. The historical data was considered in 2018. TDABC is used to measure the un-used capacity by constructing the time equation and capacity cost rate. This work found three conditions of un-used capacity. Type I is pessimistic situation whereby according to winding toroid core, the un-used capacity of time and cost are -14820 hours and -MYR2.60 respectively. It means the system must sacrifice the time and cost more than actual apportionment. Type II is most likely situation whereby according to assembly process, the un-used capacity of time and cost are 7400 hours and MYR201575.45 respectively. It means the system minimize the time and cost which close to fully utilize from the actual apportionment. Type III is optimistic situation whereby according to alignment process, the un-used capacity of time and cost are 4120 hours and MYR289217.15 respectively. It means the system used small amount of cost and time from the actual apportionment.

scholarly journals Applying the PECSL: using case studies to demonstrate the Pedagogy of Experience Complexity for Smart Learning

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Pen Lister
Keyword(s):  
Real World ◽  
Mobile Apps ◽  
Urban Environments ◽  
Learning Activities ◽  
Learning Activity ◽  
Opportunities To Learn ◽  
Practical Application ◽  
Design And Development ◽  
Smart Learning

AbstractThis paper discusses the uses and applications of the Pedagogy of Experience Complexity for Smart Learning (PECSL), a four-tier model of considerations for the design and development of smart learning activities. Using existing mobile apps and relevant activities as illustrative examples, the PECSL is applied to indicate concepts and mechanisms by which useful pedagogical considerations can work alongside user-centred design principles for the design and development of smart learning in urban hyper-localities. Practical application of the model is discussed using real world examples of activities as a basis to demonstrate the potential for manifold opportunities to learn, and plan for experience complexity in a smart learning activity. Case study approaches reflect on aspects of the PECSL in how it might be a useful and pragmatic guide to some of the issues faced when designing digital citizen learning activities in complex urban environments.

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