Estimation of cellular manufacturing cost components using simulation and activity-based costing
Abstract: It can be difficult
estimating all of the cost components that are attributed to a machined
part. This problem is more pronounced
when a factory uses group technology manufacturing cells as opposed to a
functional or process layout of a job shop.
This paper describes how activity-based costing (ABC) concepts can be
integrated into a discrete-event simulation model of a U-shaped manufacturing
cell producing a part family with four members.
The simulation model generates detailed Bills of Activity for each part
type and includes specific information about the cost drivers and cost
pools. The enhanced model output can be
used for cost estimation and analysis, manufacturing cell design, part
scheduling and other manufacturing decision processes that involve economic
considerations. Although the scope of this effort is restricted to a small
scale manufacturing cell, the costing concepts have general applicability to
manufacturing operations at all levels.
Keywords: simulation,
activity-based accounting, cost estimation, cellular manufacturing, group
technology
Author: Paul Savory, Robert
Williams
Journal Code: jptindustrigg100026
