scholarly journals Assessment the capacity utilization of mature and immature area of replanting using time driven activity-based costing

2020 ◽  
Vol 4 (2) ◽  
pp. 7-11
Author(s):  
S.N.A.M. Zaini ◽  
M.Y. Abu
Keyword(s):  
Palm Oil ◽  
Capacity Utilization ◽  
Activity Based Costing ◽  
Time Efficiency ◽  
Unused Capacity ◽  
Internal Transport ◽  
Idle Capacity

Malaysia is currently the world’s largest exporter of palm oil although it is the second-largest producer of the oil after neighboring Indonesia. There have recently been few concerns on this plantation which are hard to detect in order to understand the variance in the operations, and the rate setting is inadequate to outlined the relation between the resources supplied and the capacity in operation, and the manager has no system to track the usage of the capacity and unused capacity. The aim of this work is to assess the capacity utilization of mature and immature area at replanting for a better accuracy. Time driven activity-based costs (TDABC) is used because time efficiency can be calculated effectively. Furthermore, it also can precisely evaluate idle capacity and separately listing the resources being used and not used. This work considers a data in 2017 to develop the solution. This work found that in the mature area from the available capacity utilization, chipping has high insufficient capacity with RM-1931518.08, planting seedlings has high insufficient capacity with -805173.84 min and internal transport has high waste cost with RM45771.30. Meanwhile, in the immature area, planting seedlings has high insufficient capacity with -566934.84 min and RM-1621433.64, manuring has unused capacity with 66763.50 min and internal transport has high waste cost with RM29667.47.

scholarly journals Implication of time equation in mature and immature area of ramp using time driven activity-based costing

2020 ◽  
Vol 4 (2) ◽  
pp. 36-39
Author(s):  
S.N.A.M. Zaini ◽  
M.Y. Abu
Keyword(s):  
Quality Improvement ◽  
Palm Oil ◽  
Capacity Utilization ◽  
Oil Production ◽  
Oil Products ◽  
Activity Based Costing ◽  
Comprehensive Understanding ◽  
Practical Capacity ◽  
Unused Capacity ◽  
Idle Capacity

Malaysia currently accounts for 28% of world palm oil production and 33% of world exports. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably. In recent times, few problems have actually happened in this plantation which are difficult to establish a time equation for analyzing the variation of activities, the rate establishment is unsuitable to display the connection between resources supplied and the practical capacity and the manager does not have a method for monitoring capacity usage and unused capacity. The aim of this work is to develop the time equation of mature and immature area at ramp for a better accuracy. Time driven activity-based costing (TDABC) is implemented because the time is successfully measured, the idle capacity is correctly determined and the capacity used and the unused capacity are differently listed. This work considers a data in 2017 to develop the solution. This work found that in the mature area from the available capacity utilization, ramp has high unused capacity with 67492.80 min which means the resources should be forecast properly in future. Meanwhile in the immature area, ramp has closest value to the practical capacity with 6667.20 min and RM5667.12 which indicates the company properly utilizes their resources. Therefore, TDABC provides more comprehensive understanding of practical resources and its associated costs while measuring processes and encouraging quality improvement.

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 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 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.

Naini Papers: capacity dilemma

2017 ◽  
Vol 7 (1) ◽  
pp. 1-22
Author(s):  
Kunal K. Ganguly ◽  
Siddharth Rai
Keyword(s):  
Operations Management ◽  
Capacity Planning ◽  
Capacity Utilization ◽  
Subject Area ◽  
Content Type ◽  
The Subject ◽  
A Company ◽  
Alternative Operations ◽  
Idle Capacity

Subject area The subject area of the case is operations management and capacity planning. The case adopts different operation strategies to use the idle capacity. Study level/applicability The case study is suitable for discussion in masters level classes. The case explains the situation of a company which is fighting for its survival. The case reveals the alternative operations strategies it applies to maximize its capacity utilization and reduce its costs. Case overview The case describes a paper producing company which is earning low margins. The company’s capacity remains unused during the off-seasons. The company then plans to share its capacity with another dying industry. Both the companies plan to cooperate and share resources. However, there are other attractive alternatives too and the dilemma situations leave the gap for continuous discussions. Expected learning outcomes The case aims at providing potential alternatives to the students and initiating healthy discussions. The students will be able to understand the capacity utilization dilemmas and applicability of the operations strategy concept in practice. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 9: Operations and Logistics.

scholarly journals PENERAPAN TIME-DRIVEN ACTIVITY-BASED COSTING PADA PERHITUNGAN HARGA POKOK PRODUK USAHA JASA UNIXON

2017 ◽  
Vol 11 (1) ◽  
pp. 12-31
Author(s):  
Astrid Anastasya Jovanka ◽  
L Jade Faliany
Keyword(s):  
Government Regulation ◽  
Capacity Utilization ◽  
Activity Based Costing ◽  
Cost Information ◽  
Time Consumption ◽  
Consumption Ratio ◽  
Using Data ◽  
The Cost ◽  
Research Show

The purpose of this paper is to calculate branding consultant cost using Time-Driven Activity-Based Costing (TDABC). TDABC calculate cost based on activity that is controlled by time. The method that is used in this research is a case study in Unixon, a small business that works in the field of branding, using data from 2016. Interviews were conducted. The cost and activity database was analyzed. The results of this research show that TDABC can be applied in this Company because it qualified the requirements; diversity in product and different time consumption ratio for each product. TDABC provided more accurate cost information by calculating all costs; cost to make and cost to sell. Implementation of TDABC also show time capacity utilization by comparing actual labor hours and work hours that is controlled by government regulation. By understanding this condition, the owner is able to evaluate the amount of job that is done, time consumption, and employee who is involved. To implement TDABC, the Company must consider each steps needed from identifying activity, assign cost to activity, calculate tariff per activity, to calculate cost of product.

scholarly journals Using Resource Consumption Accounting to determine Customer Cost of Banks

2020 ◽  
Vol 26 (118) ◽  
pp. 93-104
Author(s):  
Fayahaa Abdullah Yaqoub ◽  
Khaled Jamal Fadhil
Keyword(s):  
Service Sector ◽  
Indirect Costs ◽  
Resource Consumption ◽  
General Management ◽  
Cost System ◽  
Unused Capacity ◽  
Insight Into ◽  
Research Show ◽  
Idle Capacity

The Purpose of this Research show gap between a Normal Cost System and Resource consumption Accounting Applied in AL-Rafidin Bank. The Research explores that, how the idle capacity can be determined under resource consumption accounting, discuss the possibility of employing these energies. Research also viewed how costs can be separated into Committee and Attribute. Resource Consumption Accounting assists managers in pricing services or products based on what these services or products use from each Source. This Research has been proven that Resource consumption Accounting is more Normal Costing systems accurate In allocating indirect costs, especially in banks, because they are high. This Research provide an insight into the measurement of idle capacities quantitative and money within the Service sector generally, and Banks especially. The most important conclusions of this research that Resource consumption Accounting helps General Management of the Bank to exploit unused capacity to contribute to reducing the prices of products or services.

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.

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