A study on direct-ABC for specifying the factor of aggregating production cost

Kagehisa Nakayama, Hiroshi Fujita, Seung Jin Ryu, Naomi Katahono, Hisashi Onari

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Abstract

    In multi model production, production cost is higher than that in mass production because of deterioration of production Lead Time and productivity. Therefore, it is more important to reduce production cost by improving operations and facilities to improve work-piece flow. We use cost analysis to know direction of improvement but exiting cost accounting method has two problems. First, it is difficult to specify the operation we need to improve because it accounts cost by each resource. Second, it cannot evaluate LT by cost. Also, Activity Based Costing method, which accounts cost by activity, has a problem that its target is only the activity which can reflect cost driver. So, we designed new cost construction to specify the operation, which is needed to improve, by cost. In addition, we developed a system which can get activity performance directly in order to get all activity cost data. Furthermore, we enabled to evaluate LT by cost by considering time value.

    Original languageEnglish
    Title of host publication21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011 - Conference Proceedings
    PublisherFraunhofer-Verlag
    ISBN (Print)9783839602935
    Publication statusPublished - 2011
    Event21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011 - Stuttgart
    Duration: 2011 Jul 312011 Aug 4

    Other

    Other21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011
    CityStuttgart
    Period11/7/3111/8/4

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    Keywords

    • Activity base costing
    • Cost accounting
    • Direct activity
    • Lead time cost
    • Product cost

    ASJC Scopus subject areas

    • Control and Systems Engineering
    • Computer Science Applications
    • Industrial and Manufacturing Engineering

    Cite this

    Nakayama, K., Fujita, H., Ryu, S. J., Katahono, N., & Onari, H. (2011). A study on direct-ABC for specifying the factor of aggregating production cost. In 21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011 - Conference Proceedings Fraunhofer-Verlag.