【正文】 errous Foundry ? Each Primary category has 3 to 4 sub categories ? Sub categories are skill level based 10 Activity Based Costing LABOR DIRECT LABOR CATEGORIES Labor Group Codes A General Manufacturing C Fing D Electrical / Electronics E Rubber / Plastics G Textile Fabrication H Wiring J Air Bag (Special Studied) K Body in White M Automotive Stamping P NonFerrous Foundry T Tool and Die Code Description Code Description Skill Factor Codes A Low Skill Level C High Skill Level B Medium Skill Level S Special Studied AA General Manufacturing / Low Skill EB Rubber Fabrication / Medium Skill KC Body in White Fab. / High Skill Examples: 11 ? Labor specifically identified with a valueadded step in the manufacturing process. Each year, during an economic adjustment, information is gathered from the following resources. Rates are developed based on the average wage in the modity. This includes union and nonunion shops, and all regions in the targeted country. They are not intended to reflect any one particular supplier, but are intended to cover the range of labor cost paid by efficient suppliers. ? Resources ? . Department of Labor, Bureau of Labor Statistics。 Earnings Report ? . Bureau of Census Survey of Manufactures ? Historical documentation。 Material Handlers, Shipping/Receiving, Quality Control, First Line Supervision amp。 $ $ ? Rubber amp。 Supplier / Estimator Feedback 13 Activity Based Costing LABOR FRINGE BENEFITS ? Personnel Benefits Such as。 Indirect Labor Fringe benefits are applied to both the Direct amp。 Working Conditions Report Ford Internal Data Historical documentation。 OTHER (MRO) LABOR ? Personnel supporting Equipment, Tooling amp。 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 Building15 Activity Based Costing LABOR MAINTENANCE, REPAIR amp。 ? . Means Construction and Maintenance Models ? Marshall and Shift。 Floorspace, not Direct Labor wage) 17 Activity Based Costing LABOR Labor Question amp。 Answers ? If Indirect labor is 55% of Direct Labor, does that mean there are .55 heads indirect for every direct head? ? No. It means for every dollar spent on direct wages, there are $.55 dollars spent for indirect support. ? Isn’t MRO Labor still indirect labor? ? YES, we have separated it from the unskilled and first line supervisor, because it is not proportional to direct labor. When you pare Ford’s indirect percentage to a suppliers, you should bine both the “indirect category” along with the the MRO Labor category. ? Where is Scrap pensated? ? There are two types of scrap。 ? “PPI” Purchased Price Index, Bureau of Labor Statistics ? Lifetime Years Expected life of equipment ? Opportunity Cost Also referred to as Interest cost ? MRO (Maintenance, Repair amp。A (Sales, General amp。E (Research, Development amp。 (Initial Capital Value) + (Freight amp。 Initial Capital Cost $500,000 Cost of Machine Freight amp。 (Initial Investment x 50%) x (Interest amount) Annual Hours Assumption。 (Insurance Percentage) x (Replacement Value of Equipment) Annual Hours Assumption。 Installation $50,000, Residual Value $25,000 Replacement value = $500,000 + $50,000 $25,000 = $525,000 Insurance factor .5% .5% x $525,000 = $2,625 = $.644/hr. = $.011/min. 4076 hr/yr 4076 26 Activity Based Costing BURDEN UTILITIES ? This category pensates the supplier for the utility consumption of the equipment during the manufacture of products. As with insurance, the building utilities are included in the building cost models. ? Utility costs are applied to the burden rate in the appropriate units of measure, example。 ? Consumers Energy News ? Ford Internal Manufacturing facilities 27 Activity Based Costing BURDEN INDIRECT MATERIALS ? This category pensates the supplier for the Indirect materials, c