6533b855fe1ef96bd12b1aa4
RESEARCH PRODUCT
Lower and Upper Bounds of Manufacturing Cost in FMS
S. Noto La DiegaU. La CommareA. Passannantisubject
EngineeringOperations researchbusiness.industryTotal absorption costingMechanical EngineeringCost accountingIndustrial and Manufacturing EngineeringManufacturing costCost driverAdvanced manufacturingProcess costingActivity-based costingbusinessTarget costingdescription
Abstract The use of traditional techniques of product costing, cost control and performance evaluation in advanced manufacturing environment supplies poor results to operations management. In this paper, after a brief review of the major drawbacks of traditional machining economics, a new framework for product costing will be presented. The basis of the proposed approach lies on an analysis of the production process aimed at single out proper cost drivers for the use of the various employed manufacturing resources. As a consequence, the quota of the manufacturing cost of uncertain allocation is drastically reduced. A lower and an upper bound value of the unit production cost are also defined with reference to the given manufacturing system. The range between the above bounds is used for accounting the costs of uncertain allocation.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1993-01-01 | CIRP Annals |