Parametric estimation of supplier's plant construction costs

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.

ALTERNATIF VARIABLE COSTING SEBAGAI PENENTUAN HARGA PRODUK PADA IWAI CAKE & BAKERY

During the current pandemic and the movement of society, forcing entrepreneurs to carry out various activities to survive in these difficult times. Various actions such as providing attractive promotions, discounted prices, efficiency in the production process, even innovating and calculating product cost estimates. The variable costing method is an alternative to determine the price of the product that is used to increase the accuracy of the selling price of the product. In general, entrepreneurs use an easier method by adding all the costs incurred in calculating the cost of the product, which we know as the full costing method. The purpose of the counseling is the preparation and application of the variable costing method in calculating the selling price. In order to improve the accuracy, it is necessary to sort costs based on their nature, namely the separation of variable costs and fixed costs. In an effort to help MSME actors to survive, I as a lecturer from Tarumanaga University, Faculty of Economics and Accounting proposed the owner of Iwai Cake & Bakery to help calculate the cost of products through preparation, implementation in business units with the title "Variable Costing as an alternative costing to improve price accuracy productPada masa pandemi saat ini dan pembatasan pergerakan dari masyarakat, memaksa para pengusaha melakukan berbagai aktifitas untuk tetap dapat bertahan dimasa yang sulit ini. Berbagai Tindakan seperti memberikan promo-promo yang menarik, potongan harga, efisiensi dalam proses produksi bahkan melakukan inovasi dan kalkulasi perhitungan penentuan harga pokok produk. Metode variable costing merupakan salah satu alternatif penentuan harga produk yang dipakai untuk meningkatkan keakuratan penentuan harga jual produk. Secara umum para pengusaha menggunakan metode yang lebih mudah dengan menambahkan semua biaya yang dikeluarkan dalam perhitungan harga pokok produk yang kita kenal dengan metode full costing. Tujuan dari penyuluhan adalah penyusunan dan penerapan metode variable costing dalam menghitung harga produknya. Untuk meningkatkan keakuratan harus dilakukan pemilahan biaya berdasarkan sifatnya yaitu pemilahan biaya yang bersifat variable dan biaya-biaya yang bersifat tetap. Dalam upaya membantu pelaku UMKM supaya tetap bertahan, Saya selaku dosen dari Universitas Tarumanaga Fakultas Ekonomi Jurusan Akuntansi mengajukan ke pemilik Iwai Cake & Bakery dengan membantu melakukan perhitungan harga pokok produk melalui penyusunan, implementasi di unit usaha dengan judul “Variable Costing sebagai alternatif costing untuk meningkatkan keakuratan penentuan harga produk

Usulan Time-Driven Activity Based Costing System, Customer Profitability Analysis dan Sistem Pengendalian Internal pada Perusahaan Logistik

ABSTRACT This research aims to answer the problem arising in PTX, a logistic services company, that never achieved target profit over five past years. This study is conducted using a case study with a qualitative research method. The data are analysed using descriptive analysis and content analysis techniques based on performance theory. Results shows that PT X cannot achieve target profit due to inaccurate allocation of product cost and inaccurate price setting. To improve product cost and price setting accuracy, this research recommends PT X to conduct Customer Profitability Analysis, apply Time-Driven Activity Based Costing to cost allocation and apply internal control system. ABSTRAK Penelitian ini bertujuan untuk menjawab permasalahan yang terjadi di PT X yang bergerak di industri jasa logistik. PT X belum pernah mencapai target laba sejak lima tahun terakhir. Strategi penelitian yang digunakan adalah studi kasus dengan metode penelitian kualitatif. Penelitian ini menggunakan teknik analisis data yaitu descriptive analysis dan content analysis berdasarkan performance theory. Hasil penelitian ini menunjukkan bahwa PT X tidak dapat mencapai target laba dikarenakan adanya alokasi biaya yang tidak memperhitungkan biaya tidak langsung dan penentuan tarif yang tidak didasarkan oleh perhitungan harga pokok penjualan. Untuk keakuratan alokasi biaya dan penentuan tarif, penelitian ini memberikan usulan pada PT X untuk melakukan Customer Profitability Analysis, menggunakan Time-Driven Activity Based Costing untuk alokasi biaya serta menerapkan sistem pengendalian internal.

MILLING EFFECTIVENESS INCREASE BY MEANS OF HARD-ALLOY COMPOUND END MILLING CUTTERS

The investigation purpose: the effectiveness increase of hard-alloy end milling cutters at the expense of new milling cutter design development conventionally called compound milling cutters. The problem solved during investigation: the reveal of the most efficient fields of compound milling cutter use. The scientific novelty of the work: the formation of a new kind of hard-alloy end milling cutter design, to avoid milling cutter destruction in the place of shank end mounting in the chuck of the machine a shank end is made of structural steel and soldered with a hard-alloy cutting part of the milling cutter. As a result of the investigation it was defined: a) compound milling cutters compete with monolithic milling cutters in accuracy during billet production of parts at a lower cost of milling cutters; b) a compound milling cutter with a diameter of 16 mm and a milling cutter length of 92 mm substitute successfully a monolithic milling cutter by production accuracy and ensures cost reduction of a product by 4%; c) a compound milling cutter with a length of 220 mm as compared with a monolithic milling cutter ensures product cost reduction by 38% and applicable for general aims at engineering enterprises.

Web based cost management tool prototype development using temporal-activity based costing (Temporal-ABC)

The cost management system is a powerful tool for managers to understand manufacturing plant performance. It is essential for any organization to develop a cost management system to estimate the product cost and to account actual cost spent for the product manufacturing. The Activity Based Costing (ABC) system has recently attracted the attention of many companies and is considered to provide better information about the cost pattern and the relationship between resources and activities. However, a survey of earlier research reveals that there are several difficulties to estimate the true product cost due to selection of overhead drivers to activities. To overcome these difficulties Temporal-ABC has been developed by Dr. K.D. Tham. In the first part of the report, costing system implementation issues are studied through real-time case studies. Then, research has been conducted and web-based proptotype application is developed using Temporal-ABC through collaboration with a world-class electronics industry - Celestica Inc. Toronto, Canada. The developed prototype demonstrates the application of Temporal-ABC for cost estimation at Celestica.

Web based cost management tool prototype development using temporal-activity based costing (Temporal-ABC)

The cost management system is a powerful tool for managers to understand manufacturing plant performance. It is essential for any organization to develop a cost management system to estimate the product cost and to account actual cost spent for the product manufacturing. The Activity Based Costing (ABC) system has recently attracted the attention of many companies and is considered to provide better information about the cost pattern and the relationship between resources and activities. However, a survey of earlier research reveals that there are several difficulties to estimate the true product cost due to selection of overhead drivers to activities. To overcome these difficulties Temporal-ABC has been developed by Dr. K.D. Tham. In the first part of the report, costing system implementation issues are studied through real-time case studies. Then, research has been conducted and web-based proptotype application is developed using Temporal-ABC through collaboration with a world-class electronics industry - Celestica Inc. Toronto, Canada. The developed prototype demonstrates the application of Temporal-ABC for cost estimation at Celestica.

The Use of Antifactor Xa Assays in a Comprehensive Pediatric Extracorporeal Membrane Oxygenation Anticoagulation Protocol is Associated with Increased Survival and Significant Blood Product Cost-Savings

We augmented our standard extracorporeal membrane oxygenation laboratory protocol to include antifactor Xa assays, thromboelastography, and antithrombin measurements. We performed a retrospective chart review to determine outcomes for patients placed on extracorporeal membrane oxygenation (ECMO) prior to and after the initiation of our anticoagulation laboratory protocol. A total of 663 consecutive ECMO runs were evaluated from January 1, 2007 to June 30, 2018. Of these patients, 252 were on ECMO prior to initiation of the anticoagulation laboratory protocol on September 1, 2011, and 411 patients were on ECMO after initiation of the protocol. There were no major changes to our extracorporeal membrane oxygenation circuit or changes to our transfusion threshold during this continuous study period. Transfusion utilization data revealed statistically significant decreases in almost all blood components, and a savings in blood component inflation-adjusted acquisition costs of 31% bringing total blood product cost-savings to $309,905 per year. In addition, there was an increase in survival to hospital discharge from 45 to 56% associated with the initiation of the protocol (p = 0.004). Our data indicate that implementation of a standardized ECMO anticoagulation protocol, which titrates unfractionated heparin infusions based on antifactor Xa assays, is associated with reduced blood product utilization, significant blood product cost savings, and increased patient survival. Future prospective evaluation is needed to establish an antifactor Xa assay-driven ECMO anticoagulation strategy as both clinically superior and cost-effective.

Model Penentuan Harga Jual dengan Metode Time Driven Activity Based Costing Pada UMKM ”Sale Pisang” di Kabupaten Banyuwangi

The purpose of this study to examine (1) how the stages of the production process for “Sale Pisang Product’ that affects the determination of the selling price of Micro, Small, and Medium Enterprises in Banyuwangi? (2) How is the selling price computing model "Banana Sale Products" able to determine a competitive selling price for Micro, Small and Medium Enterprises in Banyuwangi?. This Study used survey, qualitative exploratory and action. The analysis data used triangulation method. The results obtained in this studi is the process of computing the production cost of “Sale Pisang Product” still uses a traditional method, so that the resulting product cost is distorted and the selling price becomes uncompetitive. In fact, the product cost compute model using Time Driven Activity Based Costing provides more accurate and informative information for Micro, Small and Medium Enterprises actors in making decisions such as determining the selling price. The Time Driven Activity Based Costing method is able to reduce costs and increase the net income of each “sale pisang” variant. The contribution of this study is expected to create competitive selling price of “Sale Pisang Product” and improve the economic competitiveness of Kab. Banyuwangi is more dynamic based on the potential of natural resources and local wisdom.

Effect of COVID-19 Pandemic on Cannabis Use in Cancer Patients

Introduction: Medical and other cannabis use by cancer patients continues to increase. Reasons for use include management of psychosocial stressors, physical and psychological symptoms. We explored the effect of the coronavirus disease 2019 (COVID-19) pandemic on on patients’ cannabis use, hypothesizing that users would be increasing their use due to heightened stress and increased uncertainty. Methods: Participants were part of an anonymous online survey of cannabis use in cancer. Items specific to COVID-19 were administered between April and June 2020. Results: Thirty-one percent of respondents (n = 26) confirmed they used cannabis during COVID-19. The top 5 reasons for use were sleep, anxiety, nausea, pain, and appetite. Ninety-two percent denied they were using cannabis for new or different symptoms. Eighty-one percent were using about the same amount as before, 11.5% were using less, and 8% more. Only 12% reported that product cost affected their use and that they had changed the way in which they used cannabis. Eight percent were stockpiling product so that they did not run out during the pandemic. Conclusions: The percentages of those reporting a change in cannabis use were modest. Increased use may reflect efforts to relieve stress. Decreased use may reflect barriers to securing unregulated products and perceived vulnerability to the effects of infection on the respiratory system. As the pandemic continues to evolve, it will be important to monitor its effects on cancer patients as it relates to psychosocial stressors, psychological symptoms, and cannabis use.