【正文】 vity Based Costing What is GRIMM and ABC? ? GRIMM Cost Optimization’s Database Global Rates and Information of Machines and Materials. Used to accumulate calculate manufacturing labor overhead (burden) rates. ? Activity Based Cost System Identifies the uniqueness of each product’s processing method to determine overhead allocation, and applies the cost based on the major elements (Cost Drivers). Consistent and fair method to pensate suppliers for product cost. Machine’s operating cost will remain consistent regardless of manufacturer. ? Confidentiality Good judgment should be maintained when discussing equipment cost between petitive manufactures. Many machine builders request a nondisclosure agreement. Sensitive material should only be shared with the supplier for parison information. Not a “onesided” sharing process. 4 ABC Activity Based Costing ? GRIMM Equipment Representation。 ? Currently the database represents over 400 equipment manufacturers, and approximately 1600 machines, 2300 raw materials, 2900 SBOC’s. (Standard Bought Out Components) ? New technologies are being studied and continually added to the database. ? This system is shared globally, piling data from 9 countries/regions United States, Great Britain, Germany, France, Italy, Mexico。 ? Materials (includes raw matl. and purchased ponents) ? Labor Direct Labor Indirect Labor (NonSkilled) Fringe Benefits MRO Labor (Skilled) ? Equipment Overhead (Burden) Depreciation Interest (Opportunity cost) Floorspace Cost (Building and Expenses) MRO Equipment Maintenance (NonLabor) MRO Tooling Maintenance (NonLabor) Utilities Indirect Materials Insurance ? Markups (includes SGA, Profit, EndItem scrap, RDE, etc) 6 Cost Estimate Diagram MATERIAL LABOR BURDEN MARKUPS Direct Indirect Fringe Manufacturing Overhead MRO Labor End Item Scrap SG A Profit Raw Material Purchased Parts ED T TOTAL LABOR TOTAL MFG. COST % Varies Varies Varies TOTAL ESTIMATED PC. PRICE 7 ABC Activity Based Costing LABOR PRESENTATION 8 Activity Based Costing LABOR DIRECT LABOR ? Wages of person performing manufacturing process. (Value added operations) ? Generally expressed in rate per hour ? Currently there are 11 primary categories available in CAPE。 – Employment Earnings Report ? . Bureau of Census Survey of Manufactures ? Historical documentation。 Material Handlers, Shipping/Receiving, Quality Control, First Line Supervision Manufacturing Engineering, etc. ? Expressed as a percentage of Direct Labor. Studies have shown proportional cost relationships between Direct and Indirect labor within modities. Indirect labor support is applied to individual modity categories. ? Examples: Direct Labor Cost Indirect Labor Cost ? General Manufacturing。 Supplier / Estimator Feedback 12 Activity Based Costing LABOR FRINGE BENEFITS ? Personnel Benefits Such as。 Supplier / Estimator Feedback 13 Activity Based Costing LABOR MAINTENANCE, REPAIR OTHER (MRO) LABOR ? Personnel supporting Equipment, Tooling Building ? Skill Trades Labor, including machine repair, electricians, millwrights, pipefitters, tool die repair, etc. ? Cost is based on building maintenance per square meter. ? The system applies a fully accounted skilled trades rate to the amount of floorspace required, including outside maintenance, office space, warehousing, restroom, etc. ? Cost is based on the investment value. ? The system applies a percentage factor to the investment , so that as the capital requirement increases, so does the amount of maintenance funding. Equipment and Tooling Building14 Activity Based Costing LABOR MAINTENANCE, REPAIR OTHER (MRO) LABOR ? Resources。 Construction Appraisal ? Ford Land Development ? European Database, Manufacturing Engineering Study ? Ford Internal Maintenance studies ? Equipment Manufacturers Equipment and Tooling Building 15 Activity Based Costing LABOR Labor Summary: Labor Group Direct Labor Indirect Labor Fringe Benefit MRO Labor .96 .96 .96 General Manufacturing AA AB AC Total Labor Rate/hour (50% of dir. + Ind. Labor) (55% of direct Labor) (MRO Labor remains constant because it is based on Machine Floorspace, not Direct Labor wage) 16 Acti