DYNAMIC ANALYSIS OF COST MODELING FOR PRODUCTION LINE
Ankit Kumar Mishra
, Ashutosh Dwivedi
dynamic activity, real-time production line, automotive assembly plant
The proposed methodology is a dynamic activity-based costing method that relies on real-time production line data to track costs, specifically the costs of unused capacity and the added costs due to downtime events such as machine breakdowns. The methodology aims to trace these costs to responsible cost centers, activities, and stations on the production line to give a better representation of the total cost of production, specifically in regards to normal manufacturing costs, added downtime costs, and added costs from excess capacity. In addition to monetary costs, the methodology provides a framework for tracking environmental “costs”, such as energy use and waste, in order to aid plant managers with determining the environmental impact of their operations. Methodology addresses a gap between activity-based costing and downtime costing by combining the two under a single methodology. It traces both monetary and environmental costs to cost centers on the manufacturing line to aid continuous improvement efforts and the allocation of resources. By using real-time data, the methodology alerts management to changing system performance in a shorter timeframe than static costing systems. The methodology quantifies system performance in monetary values, which elicit more emotion and attention than traditional non-financial production metrics. The methodology is shown in a case study of an automotive assembly plant. Specifically, the case study models the cost and resource use of an automotive paint shop and trace this resource use to specific areas of the paint shop to highlight possible areas for improvement. The case study provides results that show how the proposed methodology can allocate costs to normal production and the added costs of downtime and unused capacity. The case study splits these costs over the modeled case study stations and highlights possible areas of improvement. This work primarily focuses on the development of the methodology and a framework for implementation. This thesis does not address the logistics of implementing a costing system based on the proposed methodology using actual automated data from actual production line data acquisition systems. Additional work is needed to address this logistics and to further refine the method.
"DYNAMIC ANALYSIS OF COST MODELING FOR PRODUCTION LINE ", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.6, Issue 2, page no.378 - 385, February-2021, Available :https://ijsdr.org/papers/IJSDR2102053.pdf
Volume 6
Issue 2,
February-2021
Pages : 378 - 385
Paper Reg. ID: IJSDR_192969
Published Paper Id: IJSDR2102053
Downloads: 000347418
Research Area: Engineering
Country: -, -, -
ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: IJSDR(IJ Publication) Janvi Wave
