Activity-based costing approach in the measurement of cost o(2)

AmongotherCoQmodels,Feigenbaum’s(1956)PAFmodeliswidelyacceptedin

o-Lopes,2011).ThisstudymakesuseofPAF,inqualitymanagement(Branca&Catala

whichthequalitycostsarecategorisedasPAF.Preventioncostsareallthoseincurredinordertopreventfailureandensurethequalityofproduct/services.Appraisalcostsareallmeasuringandtestingcostsexpensedinordertopreventfailure.Failurecostsarethoseincurredtocorrectthequalityofproduct/services;dividedintotwogroups,internalandexternalfailure.Theformerarecorrectioncostsoccurringbeforethedeliveryofproduct/services,whilethelatterarethoseoccurringafterthedelivery.Duetointer-relationsamongCoQcategories,itisassumedthatinvestmentinpreventionandappraisalactivitiesismorelikelytodecreasethecostoffailure.Inasimilarmanner,investmentsinpreventionactivitiesarealsomorelikelytoresultinareductionintheappraisalcosts.

Althoughwellknowninthequalityliterature,somearguethatthePAFmodelanditsCoQcategorisation,asprevention,appraisalorfailure,isinitselfde cientinthemeasure-mentofqualitycostsandshouldberevised(Chiadamrong,2003;Dahlgaard,Kristensen,&Kanji,1992).SuchacriticismhaslongbeendirectedbytheusersofthePAF/traditionalcostaccountingmodel,wheretheclassi cationofindirectcosts(overheadssuchasdepre-ciationandutilities)createsdif culties.Tsai(1998)enlightenstheissuebyarguingthatthelackofunityintheallocationofoverheadstoCoQcategoriesleadstofailureinidentifyingthesourceofqualitycosts.AsaresultoftheuseofPAF/traditionalcostaccountingmodels,forallpracticalpurposes,CoQhasbeenseenasimpossibletomeasure(Chiadamrong,2003;Yang,2008).

Activity-basedcosting(ABC)

ABCisacostaccountingmethodthatidenti estheactivitiesinvolvedintheproductionandtheresourcesconsumedbyeachactivityinordertoproperlyallocateactivitycostsoverproduct/services.AnABCmodelisdifferentfromtraditionalcostaccountingin

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TotalQualityManagement423

termsofoverheadallocation(Cooper&Kaplan,1988).Traditionalcostaccountingischaracterisedby(i)absorptionofoverheadsintothecostoftheproducts/servicesand(ii)allocationofoverheadcoststoproduct/servicesusingasingledriverbasedonapre-determinedestimatedallocationrate.Therefore,itcouldbedescribedasacostingmethodwhichisnotsophisticatedenoughtodetermineproduct/servicecostsprecisely.ABCisatwo-stagemethodology; rst,itassignstheresourcestoactivities,thentocostobjectsusingadifferentcostdriverforeachactivity.

CoQmeasurementunderABC

Intraditionalcostaccounting,themeasurementofCoQstartswiththeidenti cationofeventscausingpoorquality,andmatchingthemwithrelatedqualitycostsunderthePAFscheme.Inthesecondstep,withinthecost/bene tapproach,thefrequenciesandresourcecostsofthoseareusedtodeterminewhethertheseeventsoccursystematicallyandareworthmeasuringregularly,orwhethertheyareone-timeevents.Allocationofindirectcostsoneachqualitycostcategoryisheavilydependentonestimationsbyman-agers,usingasinglecostdriver.

CoQ/ABC,asanalternativecostingmethodovercomesthede cienciesoftraditionalcostaccounting,byanalysingtheactivitiesoftheproductionprocess,determiningthecostsoftheresourcesconsumedbyeachactivityandallocatingactivitycostsusinganappropriatecostdriverforeachquality-related(accordingtoPAFscheme)andquality-unrelatedcost.

CooperandKaplan(1988)developedABCasasophisticatedcostingmethodwhichenablescostassignmentsbyeliminatingwastethroughNVAactivitiesandidentifyingopportunitiesforimprovement.Inotherwords,ABCalsosupportsqualityimprovementstoovercomethede cienciesthatorganisationsface(Maiga&Jacobs,2008).Inordertoimprovequality,ABCprovidesinformationintherecognitionofactivitiesthatcausepoorquality(Carol ,1996)byclassifyingallactivitiesaseithervalue-added(VA)orNVA.Accordingtothiscategorisation,VAactivitiesarethosethatcontributetothevalue(increasethequalityandeffectivenessoftheuse)oftheproduct/servicesdelivered.AsNVAactivitiesmakenocontributiontothevalueoftheproduct/services,theireliminationdecreasestherelatedcostsandhasnoeffectonthevalueoftheproducts/services.

IntheCoQ/ABCframework,ABCandCoQuseacommondatabaseinordertopromoteproductivity,eliminatewaste,reducecostsandimprovequality(Tsai,1998).

TheCoQ/ABCframeworkissummarisedinFigure1.

The rststepinCoQmeasurementunderABCistheactivityanalysisandcategoris-ationofactivitiesasVAorNVA.Inthesecondstep,eachactivityofABCiscategorisedasquality-relatedorquality-unrelatedactivitiesusingthePAF.Inthethirdstep,resourcecosts(includingoverheads)aretracedtoquality-relatedandquality-unrelatedactivities.Wheretheresourcesareusedinasinglequality-relatedactivity,theyaretraceddirectly,andwhereusedinseveralactivities,theyareassignedamongtheactivitiesusingaresourcedriver.CoQismeasuredasthesumofthecostsofquality-relatedactivities.Afteractivitycostsarecalculated,theyaretracedtocostobjectsusingactivitydrivers.Casestudy

¨zcTQMincreasesef ciencyandproductivityinorganisations(Aslan&O¸elik,2009).

Therefore,SMEsneedtofocusonqualitymanagement(Kuratko,Goodale,&Hornsby,2001).However,inpractice,becauseofinformationde cienciesorinaccurateaccounting

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¨zkanandY.ZenginKaraibrahimog lu424S.O

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Figure1.CoQcategorisation:ABCapproach.

andcostingsystems,mostSMEsareunlikelytousequalitymanagementtoolsandtech-niqueseffectively.Inthispaper,followingTsai(1998),CoQmeasurementunderABC

wasimplementedinasmallengineeringcompanyinordertoanalysetheresults,bene tsanddrawbacksassociatedwiththismethod.

Thecompanyselectedforthecasestudyisasmallassembly-orientedengineeringcompanythatproduceshigh-pressuretesting(HPT)andhydraulicpower(HP)unitstoorder.Inadditiontostandardisedproducts,customisationsarealsomadeinaccordancewithdemand.

Asindicatedpreviously,teamworkwiththeactiveparticipationofmanagersandemployeesisrequiredfortheaccuracyoftheCoQmeasurementandqualitymanagement.Across-functionalteamwasth …… 此处隐藏：6327字，全部文档内容请下载后查看。喜欢就下载吧 ……