【正文】 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 Activity Based Co