scholarly journals Feasibility study on the implementation of Mahalanobis-Taguchi system and time driven activity-based costing in electronic industry

2021 ◽  
Vol 10 ◽  
pp. 160-172
Author(s):  
Nik Nurharyantie Nik Mohd Kamil ◽  
Sri Nur Areena Mohd Zaini ◽  
Mohd Yazid Abu
Keyword(s):  
Historical Data ◽  
Separate Analysis ◽  
Activity Based Costing ◽  
Electronic Industry ◽  
Production Sector ◽  
Cost Rate ◽  
Continuous Innovation ◽  
Core Condition ◽  
Capacity Cost ◽  
The Relationship

Electrical and electronic industry is one of Malaysia’s leading industries which covers around 24.5% in manufacturing production sector. With a continuous innovation of the Industry, inductor component gets higher demand from customer and it is good if there is a study to convince that those factors are really significant to the production as well. Meanwhile, the current costing being used is difficult to access the complete activities required for each workstation and need separate analysis to measure the un-used capacity in term of resources and cost. The objective of this work is to clarify the relationship between Mahalanobis-Taguchi system (MTS) and time driven activity-based costing (TDABC) in the electronic industry. The data collection is focused on inductor component by consiedring the historical data in 2018. MTS is used as a method to optimize various parameters while TDABC is used to measure the un-used capacity by constructing the time equation and capacity cost rate. There are 7 parameters considered which are condition of wire, condition of winding, condition of epoxy, condition of core, condition of lead part, condition of marking and condition of soldering. As a result, MTS is successfully developed the normal and abnormal Mahalanobis distance (MD). In February, the normal MD is 0.9998 and the abnormal is 15.6538 with 2 significant parameters with signal to noise is 0.1244. In addition, there are 3 parameters consistently influenced along 10 months such as condition of core, condition of lead part and condition of soldering and 2 parameters are not consistently influenced such as condition of epoxy and condition marking. On the other hand, the total used and un-used capacity of time are 257124.02 minutes and 5217031.43 minutes respectively while the total of used and un-used of cost are MYR6,296,493.10 and MYR6214807.07 respectively. Eventually, this work concludes that both methods are a great tool and feasible to be implemented in the electronic industry.

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

2021 ◽  
Vol 9 ◽  
pp. 32-53
Author(s):  
N.N.N.M. Kamil ◽  
S.N.A.M. Zaini ◽  
M.Y. 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). 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 COMPARATIVE STUDY: ACTIVITY BASED COSTING AND TIME DRIVEN ACTIVITY BASED COSTING IN ELECTRONIC INDUSTRY

2020 ◽  
Vol 4 (1) ◽  
pp. 68-81
Author(s):  
N.F. Zamrud ◽  
M.Y. Abu
Keyword(s):  
Cost Allocation ◽  
Service Level ◽  
Activity Based Costing ◽  
Electronic Industry ◽  
Product Complexity ◽  
Cost Rate ◽  
Activity Cost ◽  
Economic Reality ◽  
Unused Capacity ◽  
Capacity Cost

By the 1980s, Traditional Cost Accounting (TCA) is no longer reflecting the current economic reality due to distorted information about the profitability of their orders, products, and customers. In addition, Activity-based Costing (ABC) is a costing method originally developed to overcome the shortcoming of TCA method in the era of rapidly increasing product complexity and diversification. However, it is not universally accepted because it ignores the potential for unused capacity which will be beneficial for forecasting. The objective of this work is to compare the advantages of ABC and Time-driven Activity-Based Costing (TDABC) by analyzing the features towards costing sustainment. The work begins by collecting data at electric electronic industry located at Pahang and the product selected is a magnetic inductor. ABC focuses on the costs inherent in the activity based products to produce, distribute or support the products concerned. TDABC uses time equation and capacity cost rate (CCR) to measure the unused capacity with respect to the time and cost. This work has successfully compares the methodology between ABC and TDABC in electronic industry. The item such as stages for cost allocation, determination of drivers, action taken for an additional activity, cost consideration for implementation, system building, system update, information given from each method, transparency, overestimation of cost, differentiation of service level, oversimplification of activities and capacity forecast and planning. It concludes that both have their strength according to the industry needs.

scholarly journals Constructing a new cost structure using time-driven activity-based costing for replanting at palm oil plantation

2021 ◽  
Vol 7 (1) ◽  
pp. 55-69
Author(s):  
Sri Nur Areena Mohd Zaini ◽  
Mohd Yazid Abu
Keyword(s):  
Palm Oil ◽  
Capacity Planning ◽  
Cost Structure ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Practical Capacity ◽  
Systematic Development ◽  
Set Up ◽  
Unused Capacity ◽  
Capacity Cost

The palm oil industry in Malaysia is undeniably the pride of the country. However, in this plantation there are currently few issues which do not set up a time equation to interpret the variance of activities, the rate setting did not illustrate the correlation between the resources provided and the practical capacity, and the manager had no tool in place to monitor the unused capacity. In order to increase precision in the field of palm oil plantation, this work aims to develop a new cost structure. Time-driven activity-based costing (TDABC) has been introduced because it allows time output to be efficiently assessed, the idle capacity accurately defined, and the unused capacity separately to be recorded. This provides an overview of functional tools and their associated costs as well as measurement methods and facilitates quality improvement. This work focused only on replanting field and the plantation located in Pahang. The maximum replanting capacity cost rate (CCR), with 288600 minutes and 0.106 RM / minute, was subsequently successfully developed. Finally, the manager can observe that 68358.45 minutes of utilized capacity could be used for the systematic development of replanting capacity planning.

scholarly journals ASSESSMENT THE UNUSED CAPACITY USING TIME DRIVEN ACTIVITY BASED COSTING IN AUTOMOTIVE MANUFACTURING INDUSTRY

2020 ◽  
Vol 4 (1) ◽  
pp. 82-94
Author(s):  
N.F.A. Ghani ◽  
S.N.A.M. Zaini ◽  
M.Y. Abu
Keyword(s):  
Production Line ◽  
Lean Manufacturing ◽  
Manufacturing Industry ◽  
Investment Strategy ◽  
Cost Driver ◽  
Actual Condition ◽  
Activity Based Costing ◽  
Automotive Manufacturing ◽  
Cost Rate ◽  
Capacity Cost

Automotive Manufacturing Industry usually known implementing all six sigma method and lean manufacturing. However, actual practicality in the world of manufacturing, there are a lot of factors contributes that become the challenge to the ideal of lean production line. Not exclude those factors, there is no methods to identify the possible lost cost by the factors. This research is to identify the used-and un-used capacity exist in production line that considering factors affecting the production line at real time. Time-driven activity-based costing (TDABC) is identified as one of the powerful tools to analyze the actual condition of production. Cost-driver rate is defined in Phase 3 where the highest capacity cost rate calculated is RM0.67 per minutes which involving Station 3, Station 5, Station 7 and Station 8. The least capacity cost rate is RM0.33 per minutes recorded by Station 0(Preparation), Station 2 and Station 6. Ten time equations for each station at trim line is developed. During the development of time equation, criticality of Station 7 when it became the only station affected with all thirteen factors listed can be seen as station that needed focus for improvement or target for lean manufacturing. In regards of the relevancy of applying Time-Driven Activity-Based Costing, as a whole, TD-ABC can be used to identify the estimation capacity used either over or under-used. Not only un-used capacity is identified, but result shows Station 0 is over-used by 2932 minutes equals to RM967.56. Therefore, based on the result obtained, station with over-used capacity and several stations with under-used capacity gives a clear overview to the management of the company for better investment strategy.

scholarly journals Application of the TDABC model in the logistics process using different capacity cost rates

2016 ◽  
Vol 9 (5) ◽  
pp. 1003 ◽  
Author(s):  
Paulo Afonso ◽  
Alex Santana
Keyword(s):  
Cost Model ◽  
Deep Understanding ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Study Results ◽  
Unused Capacity ◽  
Logistics Process ◽  
The Cost ◽  
Capacity Cost

Purpose: The understanding of logistics process in terms of costs and profitability is a complex task and there is a need of more research and applied work on these issues. In this research project, the concepts underlying Time-Driven Activity Based Costing (TDABC) have been used in the context of logistics costs.Design/methodology/approach: A Distribution Centre of wood and carpentry related materials has been studied. A multidisciplinary team has been composed to support the project including the researchers and three employees of the company responsible for accounting, logistics and warehousing. The design and implementation of the costing model asked for a deep understanding of the different tasks and processes that should be considered. Accordingly, a TDABC model for the logistics function was developed.Findings: The cost model presented here is supported on a series of time equations designed for the logistics function which allow the analysis and discussion of costs and profitability of different cost objects namely, products, clients, distribution channels, processes and activities. The cost of unused capacity and the effectiveness of logistics processes are also highlighted in this model.Research limitations/implications: In a case study, results and implications cannot be directly or immediately generalized. Nevertheless, the proposed time equations and cost model can be easily adapted to explain other types of logistics functions and it gives the foundations or other TDABC models with more than one capacity cost rate.Practical implications: The TDABC model developed in this case study can be used in similar cases and as a basis for the analysis of logistics costs in other logistics processes. Furthermore, managers can rely on the proposed approach to analyze products’ profitability and logistics cost structure. Originality/value: In this case, different capacity cost rates were computed in order to reflect appropriately the logistics function which was presented in two different processes: internal logistics and distribution. These processes have specific resources allocated and should be measured differently. This is in line with Kaplan and Anderson (2004, 2007) who have suggested a more complex TDABC model with more than one capacity cost rate for these situations.

scholarly journals case study on the determination of unused capacity using time driven activity-based costing for electronic component

2020 ◽  
Vol 7 (2) ◽  
pp. 74-85
Author(s):  
N.F. Zamrud ◽  
S.N.A.M Zaini ◽  
M.Y. Abu
Keyword(s):  
Time Allocation ◽  
Cost Estimation ◽  
Group Identification ◽  
Capacity Utilization ◽  
Electronic Component ◽  
Activity Based Costing ◽  
Cost Rate ◽  
Practical Capacity ◽  
Unused Capacity ◽  
Capacity Cost

Nowadays, demand for magnetic components are increasing from customer to support technological needs. It is important for the producer to incorporate an accurate cost estimation to decide the best price to gain better profits. However, actual costing structure is ignored the potential of time equation and capacity cost rate to measure the unused capacity from the resources allotment. The objective of this work is to determine the unused capacity in term of duration and cost in the manufacturing of electronic component using time-driven activity-based costing (TDABC). The method was developed using seven stages which are resources group identification, estimate cost of resources supplied, practical capacity estimation, capacity cost rates calculation, time equation development, determine time estimates for each sub-activity and estimate capacity cost required. As a result, in sub-activity-1, the unused time was 246,156.29 minutes which needs to be re-examined so that maximum time for productivity can be achieved and the unused capacity of cost was MYR 623,804.93 which conveys the message of wastage at the workstation. In sub-activity-3, the amount of unused time and cost was -596,400 minutes and MYR -7,006,252.43 respectively. The negative value demonstrated that the operators are overworked than normal time allocation. In sub-activity 9, the amount of unused time was -596,400 minutes and MYR -7,006,252.43 for unused cost probably the job scopes were taking more time than it should to be completed. Therefore, by applying the TDABC method, the capacity utilization and time efficiency can be clearly viewed.

scholarly journals Development a new costing structure using time driven activity-based costing for palm oil plantation

2021 ◽  
Vol 7 (1) ◽  
pp. 11-25
Author(s):  
Sri Nur Areena Mohd Zaini ◽  
Mohd Yazid Abu
Keyword(s):  
Palm Oil ◽  
Capacity Planning ◽  
Oil Industry ◽  
Activity Based Costing ◽  
Specific Sequence ◽  
Cost Rate ◽  
Practical Capacity ◽  
Unused Capacity ◽  
Capacity Cost ◽  
Idle Capacity

Palm oil is one of the world's most traded farming commodities. The Malaysian palm oil industry is without a doubt to the nation's pride. However, there are few problems currently happen in this plantation which are no establishment of time equation to interpret deviation of activities, the rate establishment did not properly illustrate the correlation between supplied resources and practical capacity, and the manager did not have a tool to monitor the unused capacity. The aim of this work is to develop a new costing structure for a better accuracy specifically at nursery. Time-driven activity-based costing (TDABC) was applied because it can effectively measure the time efficiency, accurately identifies the idle capacity and separately lists the used and unused capacity. It also provides more comprehensive understanding of practical resources and its associated costs while measuring processes and encouraging quality improvement. The plantation located at Pahang which has three main divisions and this work was focussing on nursery only. This work found that a precise process mapping for nursery was developed to understand their specific sequence which contributes to time equations. Subsequently, the total used capacity and capacity cost rate (CCR) for pre-nursery was successfully developed with 98220 minutes and 0.168 RM/minute respectively. Eventually, the manager can observe that actually the unused capacity was 37515.31 min which can be used to systematically develop the capacity planning on the pre-nursery.

scholarly journals Astronomical phenomena in Dresden codex

2013 ◽  
pp. 53-64
Author(s):  
V. Böhm ◽  
B. Böhm ◽  
J. Klokocník ◽  
J. Vondrák ◽  
J. Kostelecký
Keyword(s):  
Historical Data ◽  
Large Uncertainty ◽  
Astronomical Data ◽  
Julian Date ◽  
History Of ◽  
Solar Eclipses ◽  
Dresden Codex ◽  
The Relationship

The relationship between Maya and our calendar is expressed by a coefficient known as ?correlation? which is a number of days that we have to add to the Mayan Long Count date to get Julian Date used in astronomy. There is surprisingly large uncertainty in the value of the correlation, yielding a shift between both calendars (and thus between the history of Maya and of our world) to typically several hundred years. There are more than 50 diverse values of the correlation, some of them derived from historical, other by astronomical data. We test here (among others) the well established Goodman-Mart?nez-Thompson correlation (GMT), based on historical data, and the B?hms? one (B&B), based on astronomical data decoded from the Dresden Codex (DC); this correlation differs by about +104 years from the GMT. In our previous works we used several astronomical phenomena as recorded in the DC for a check. We clearly demonstrated that (i) the GMT was not capable to predict these phenomena that really happened in nature and (ii) that the GMT predicts them on the days when they did not occur. The phenomena used till now in the test are, however, short-periodic and the test then may suffer from ambiguity. Therefore, we add long-periodic astronomical phenomena, decoded successfully from the DC, to the testing. These are (i) a synchrony of Venusian heliacal risings with the solar eclipses, (ii) a synchrony of Venus and Mars conjunctions with the eclipses, (iii) conjunctions of Jupiter and Saturn repeated in a rare way, and (iv) a synchrony of synodic and sideric periods of Mercury with the tropical year. Based on our analysis, we find that the B&B correlation yields the best agreement with the astronomical phenomena observed by the Maya. Therefore we recommend to reject the GMT and support the B&B correlation.

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