Manufacturing feature-based cost management system: a case study in Brazil |
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Authors: | Tiago Pascoal Filomena Michel José Anzanello Francisco José Kliemann Neto MichaelRobert Duffey Enrique Campos-Náñez |
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Institution: | 1. Department of Engineering Management and Systems Engineering , The George Washington University , 1776?G Street, NW Washington , DC 20052 , USA tiagopf@gwu.edu tiagofilomena@gmail.com;3. Department of Industrial and Transportation Engineering , Federal University of Rio Grande do Sul , Av. Osvaldo Aranha, 99, 90035-190 Porto Alegre , RS , Brazil;4. Department of Engineering Management and Systems Engineering , The George Washington University , 1776?G Street, NW Washington , DC 20052 , USA |
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Abstract: | Feature costing is a topic of recent discussion related to cost management systems (CMSs) aimed at understanding how product features influence production process costs. It raises as a key issue in mass customisation environments where a single product model can present hundreds of menu options. In this study, we explore the concept of feature costing beyond the use of activity-based costing (ABC). We propose a CMS based on features and common elements as costing objects instead of products. In our model, we use the unit of production effort method to organise the direct manufacturing costs, ABC method to address the indirect cost and the standard methods to compute raw materials costs. We illustrate the method in the production of bus seats in a Brazilian manufacturing company. This study gives different perspectives to the international academic community on the use of a different CMS used by many Brazilian companies. |
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Keywords: | feature costing ABC unit of production effort UEP |
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