An analytical framework based on AHP and activity-based costing to assess the value of competencies in production processes

ABSTRACT Quality is an image of a company. PT Berkat Manunggal Jaya is a company that its primary activity is to assemble the generator units. This company wants to improve its quality in its production processes. The Initial stage is to determine the amount of quality cost since it hasn’t been measured yet, especially in the production processes. This is because there are several cost categories that are within the company but the company still has not been able to measure them, which include the cost of diesel fuel for repeated inspection and the amount of diesel fuel that was carried when generators are delivered to the customers. The measuring method of this quality cost is using the Cost of Quality (COQ) model which details of the cost categories are based on Activity Based Costing (ABC) method. This method is suitable because it uses direct costs’ account, for instance, the use of materials as well as indirect costs as corporate overhead costs. The detail work instructions for the inspection of the production process between departments are provided based on existing procedures in the company. This is done to reduce the unacceptable product-in-progress when the production process is in operation. After calculating and put in all the activities into the four categories of Cost of Quality, the total Cost of Quality compared with the prices of sold unit from every generator set type are 1.77% for 680 KVA type open, 1.74% for 1300 KVA first type silent, 1.74% for 1300 KVA second type silent, 2.86% for 680 KVA type silent, 1.28% for 1300 KVA first type open, 1.27% for 1300 KVA second type open, 1.13% for 1740 KVA first type open, 1.13% for 1740 KVA second type open. The recommended solution for the reduction of Cost of Quality is to modify the procedure inspection flow in the company to reduce failure cost, especially in the final inspection costs (repeated test load processes).

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Analytical Framework and Qualitative Observations

International Trade and Investment Behaviour of Firms ◽

10.1093/oso/9780190126865.003.0003 ◽

2020 ◽

pp. 36-79

Author(s):

Murali Patibandla

Keyword(s):

Analytical Framework ◽

Monopoly Power ◽

Transactions Costs ◽

Large Firms ◽

Strategic Interactions ◽

Domestic Markets ◽

Production Processes ◽

Monopsony Power ◽

Input Markets ◽

Medium Firms

It develops a simple theory of Cournot strategic interactions between firms as basic framework and discusses behaviour of firms from dimensions of market structure, technology, scale economies, and value-chains (subcontracting). It demonstrates how large firms derived monopoly power in the product markets and monopsony power in the input markets. This, in turn, made them inward oriented in search of monopoly power in the Pre-reforms era. On the other hand, small and medium scale firms faced highly competitive conditions and high transactions costs in the domestic markets especially in the sub-contracting linkages with large firms. This, in turn, drove relatively efficient small and medium firms to exports where they are price takers facing lesser degree of transaction costs. The chapter also traces how exporting small and medium firms realized efficiency in production processes.

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Estimating Building Construction Costs by Production Processes

The Open Construction and Building Technology Journal ◽

10.2174/1874836801408010171 ◽

2014 ◽

Vol 8 (1) ◽

pp. 171-181 ◽

Cited By ~ 2

Author(s):

M. V. Montes ◽

R. M. Falcón ◽

A. Ramírez-de-Arellano

Keyword(s):

Building Construction ◽

Necessary Condition ◽

Cost Models ◽

Activity Based Costing ◽

Construction Costs ◽

New Approach ◽

Production Processes ◽

Optimization And Control ◽

And Control ◽

Construction Works

Building actors need accurate estimates in order to efficiently undertake the construction of buildings. The knowledge of real expected costs of construction works is a necessary condition for contractors to submit competitive tenders and for developers to be aware of the magnitude of their investment. In this paper, an innovative process-based model is presented, the POP model. This model aims at providing building actors with a systematized methodology to calculate building construction costs based on the planning, organization and scheduling of the expected works. Unlike the model of construction work units, the most widespread estimate model in Spain, the POP model comprises all construction costs in a direct way by identifying the production processes involved and the resources consumed, giving a new approach to the principles of the activity-based costing methodology in tune with the process-based cost models that are emerging in the international scene. Nowadays, the model is being applied in real construction works with satisfactory results of transparency, detail and adaptability. Not only reliable estimates are obtained, but also the performance of works is devised, allowing its optimization and control.

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Production Management for Manufacturing Based on Activity-Based Costing

Applied Mechanics and Materials ◽

10.4028/www.scientific.net/amm.120.432 ◽

2011 ◽

Vol 120 ◽

pp. 432-435

Author(s):

Yan Hong Liu ◽

Shu Lin Gong

Keyword(s):

Manufacturing Industry ◽

Production Management ◽

Cost Management ◽

Indirect Costs ◽

Activity Based Costing ◽

Traditional Management ◽

Accounting Systems ◽

Management Accounting Systems ◽

Production Processes ◽

Corrective Actions

In order to solve the current problems of cost management in manufacturing industry by using traditional management accounting systems, two-stage approach analytical method of activity-based costing is presented. The proposed method allocates indirect costs to products based on cost drivers of various levels. There are many advantages of the proposed method, it can make the production processes more transparent, help to identify production efficiencies, encourages managers to introduce corrective actions, allow the evaluation of corrective actions to be undertaken, reduce costs, and enhance competitiveness of enterprises. A case is analyzed, it is seem that the peoposed method is of efficiency and feasibility.

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Game theoretic applications to environmental and natural resource problems

Environment and Development Economics ◽

10.1017/s1355770x08004609 ◽

2009 ◽

Vol 14 (1) ◽

pp. 1-5 ◽

Cited By ~ 5

Author(s):

USSIF RASHID SUMAILA ◽

ARIEL DINAR ◽

JOSE ALBIAC

Keyword(s):

Game Theory ◽

Water Allocation ◽

Social Cost ◽

Analytical Framework ◽

Global Public Goods ◽

Resource Conflict ◽

Production Processes ◽

Wide Range ◽

Game Theoretic ◽

Stochastic Production

ABSTRACTGame theory has been useful as an analytical framework for assessing environmental and resource regulations and policies. The papers in this volume provide the latest methodological and applied works in game theory to a wide range of natural and environmental resource problems such as fishing, grazing, pollution, climate change, water allocation, and stochastic production processes. The findings in the papers suggest that game theory is an effective tool for the analysis of the efficient use of shared natural resources; it can be used to identify stable agreements between parties to a resource conflict, and show how non-cooperation over global public goods/bads has a high social cost tag.

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Design and Evaluation of an Analytical Framework to Analyze and Control Production Processes

Procedia CIRP ◽

10.1016/j.procir.2016.06.052 ◽

2017 ◽

Vol 62 ◽

pp. 141-146 ◽

Cited By ~ 2

Author(s):

Tom Hänel ◽

Carsten Felden

Keyword(s):

Analytical Framework ◽

Production Processes ◽

Control Production ◽

And Control

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The Need for a Broad-Based Model of Phonological Disorders

Language Speech and Hearing Services in Schools ◽

10.1044/0161-1461.2303.261 ◽

1992 ◽

Vol 23 (3) ◽

pp. 261-268 ◽

Cited By ~ 24

Author(s):

Alan G. Kamhi

Keyword(s):

Speech Production ◽

Phonological Disorders ◽

Production Processes ◽

Assessment And Treatment ◽

Speech Delays ◽

Explanatory Adequacy ◽

State Of Affairs ◽

Assessment Procedures ◽

Treatment Procedures

My response to Fey’s article (1985; reprinted 1992, this issue) focuses on the confusion caused by the application of simplistic phonological definitions and models to the assessment and treatment of children with speech delays. In addition to having no explanatory adequacy, such definitions/models lead either to assessment and treatment procedures that are similarly focused or to procedures that have no clear logical ties to the models with which they supposedly are linked. Narrowly focused models and definitions also usually include no mention of speech production processes. Bemoaning this state of affairs, I attempt to show why it is important for clinicians to embrace broad-based models of phonological disorders that have some explanatory value. Such models are consistent with assessment procedures that are comprehensive in nature and treatment procedures that focus on linguistic, as well as motoric, aspects of speech.

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