Investigating impact of the order activity costing method on product cost calculations

2008 ◽  
Vol 27 (4) ◽  
pp. 176-189 ◽  
Author(s):  
David J. Meade ◽  
Sameer Kumar ◽  
Kevin R. Kensinger
2022 ◽  
Vol 1 (2) ◽  
Author(s):  
Remo Rossi

Cost engineers of buying enterprises perform detailed product cost calculations of externally manufactured components. The aim of these calculations is to determine what a product should cost and to support purchasing functions in fact-based negotiations. While product cost engineers have deep knowledge in the calculation of direct cost, they need support in the calculation of supplier´s indirect cost categories. The calculation of industrial rent, which is expressed in annual cost per m² of occupied plant building floor space can be improved by providing accurate construction cost estimates. Construction costs are strongly impacting the calculation of supplier´s annual building depreciation, which is a crucial cost driver for the determination of the industrial rent. Academic literature is actually not providing an accurate and suitable cost model for product cost engineers, which is estimating construction cost per m² depending on different industrial building categories and alternative supplier plant locations. The paper aims to close this gap by applying linear regression analysis on a set of European construction cost data considering two industrial building categories: “warehouses/basic factory units” and “high-tech factories”. By regressing construction cost against construction labor rates within different supplier plant locations it was possible to form suitable and accurate parametric regression functions with R² values between 0.74 and 0.88. Next to high R² values acceptable mean average percentage errors between 7.45% and 11.77% could be realized by comparing estimated with observed construction cost. The estimation of industrial construction costs based on the paper´s results can be used to improve the calculation of industrial rent, which is one cost element, that has to be covered within product cost engineer´s Should Cost Calculations.


2014 ◽  
Author(s):  
Jeff Palmer ◽  
Adrienn Andersch ◽  
Jan Wiedenbeck ◽  
Urs. Buehlmann

2009 ◽  
Vol 160 (6) ◽  
pp. 137-143
Author(s):  
Rudi Kynast

Although selection forests have clear advantages over age-group forests in view of their total growth performance, their net product and their stability, not to mention the sustainability of their beneficial effect, the proportion of this type of forest is insignificantly small in Germany and also in mixed forest in the mountains. It is therefore all the more surprising that scarcely any discernable efforts have been made to increase the proportion of selection forests. For a conversion, an alternative model for the treatment of the stands is adopted, whereby it is no longer the encouragement of the growth to maturity of individual trees in the stand which is aimed for, but rather the transformation of the whole stand to a selection forest using available stand elements and elements created by an early initiation of regeneration. Based on his experience in the forestry district of Kirchzarten in the Black Forest, Germany, the author describes the procedure for a successful conversion. This is to be started as soon as possible, that is to say when the crown height of the trees is about 18 metres and with corresponding usable dimensions, using small group shelter-wood cuts, a so-called initial femel cut. To get the conversion started it is advisable to remove whole groups of predominantly badly situated and overgrown trees. The stand will be additionally structured later through further interventions at short intervals. In the process, here and there really well situated trees will actually be left to stand solitar y, in other places w hol e self-cont aine d groups will b e created and else where valuabl e mixed s tand elements will be selected for permanent preservation, this in order to create a situation in which there are about 35 overstorey trees per hectare. On the basis of his own cost calculations, the author comes to the conclusion that the conversion is, from a financial point of view, superior compared with the age-group forest in that it brings higher proceeds more quickly and more often.


2015 ◽  
Vol 2015 ◽  
pp. 1-9 ◽  
Author(s):  
Huan Zhang ◽  
Yang Liu ◽  
Jingsi Huang

Supply chain coordination models are developed in a two-echelon supply chain with double sided disruptions. In a supply chain system, the supplier may suffer from the product cost disruption and the retailer suffers from the demand disruption simultaneously. The purpose of this study is to design proper supply chain contracts, under which the supply chain with double sided disruption can be coordinated. Firstly, the centralized decision-making models are applied to find the optimal price and quantity under three cases as the baseline. The different cases are divided by the different relationship between the product cost disruption and the demand disruption. Secondly, two different types of contracts are introduced to coordinate the whole supply chain. One is all-unit wholesale quantity discount policy (AQDP) contract, and the other one is capacitated linear pricing policy (CLPP) contract. And it is found out that the gap between the demand disruption and the product cost disruption is the key factor to influence the supply chain coordination. Some numerical examples and sensitivity analysis are given to illustrate the models. The AQDP contracts are listed out under different cases to show how to use it under double sided disruptions.


2014 ◽  
Vol 607 ◽  
pp. 612-615
Author(s):  
Jong Deok Kim ◽  
Hyun Jun Ko

Fine blanking is a press-working process that permits the production of precise, finished components which are cleanly sheared through the whole cutting surface. The manufacturing cost can be reduced because the secondary operations such as milling and broaching can be eliminated and the multistage combined stamping process can be added. The product cost can increase, however, while the precise fine blanking tool and high cost fine blanking press are required. Therefore it is important to design the fine blanking tool in view of the life expectancy of the punch. In this paper the fatigue simulation of fine blanking tool punch for automobile start motor flange was conducted using the commercial FEA software ANSYS. Initially, the material properties were tested and the fine blanking tool was designed for production experiments. The modelling of tool elements and the fatigue simulation according to repeated loads were conducted. As a result of fatigue simulation, the fine blanking tool punch for start motor flange had been fractured with 3,981 strokes. In the fine blanking production experiments, the fine blanking tool punch had to be regrinded after it was used with 3,425 strokes. It was also found that the fatigue simulation of fine blanking tool punch was conducted with an error of 14%.


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