铸件成本计算.ppt

ABC Activity Based Costing/GRIMMTRAINING PRESENTATION25 May 202425 May 20241 1 Activity Based Costing/GRIMMnABC Definition/Disclosure/Background Pg.4&5nElements of a Cost Estimate&Diagram Pg.6&7nDirect Labor.Pg.9-11nIndirect Labor.Pg.12nFringe Benefits.Pg.13nMRO Labor.Pg.14&15nLabor Summary.Pg.16nLABOR Frequently asked Questions&Answers.Pg.17-18TABLE OF CONTENTS:PRESENTATION PREPARED BY:Diane M.Blair(dblair12)ext.33-78525)PRESENTATION PREPARED BY:Diane M.Blair(dblair12)ext.33-78525)Burden Analysis,Cost Optimization Dept.Burden Analysis,Cost Optimization Dept.Labor PresentationLabor Presentation2 2 Activity Based Costing/GRIMMnDepreciation Pg.21&22nInterest.Pg.23&24nInsurance .Pg.25nUtilities.Pg.26nIndirect Materials.Pg.27nMRO(Burden).Pg.28-33 nBurden Summary.Pg.34&35nFrequently asked Burden Questions&Answers.Pg.36TABLE OF CONTENTS:Burden Presentation3 3 ABC Activity Based Costing What is GRIMM and ABC?nGRIMM-Cost Optimizations DatabaseGlobal Rates and Information of Machines and Materials.Used to accumulate&calculate manufacturing labor&overhead(burden)rates.n n Activity Based Cost SystemIdentifies the uniqueness of each products processing method to determine overhead allocation,and applies the cost based on the major elements(Cost Drivers).Consistent and fair method to compensate suppliers for product cost.Consistent and fair method to compensate suppliers for product cost.Machines operating cost will remain consistent regardless of Machines operating cost will remain consistent regardless of manufacturer.manufacturer.n nConfidentialityConfidentialityGood judgment should be maintained when discussing equipment cost between competitive manufactures.Many machine builders request a non-disclosure agreement.Sensitive material should only be shared with the supplier for comparison information.Not a“one-sided”sharing process.4 4 ABC Activity Based Costing nGRIMM Equipment Representation;Currently the database represents over 400 equipment manufacturers,and approximately 1600 machines,2300 raw materials,&2900 SBOCs.(Standard Bought Out Components)New technologies are being studied and continually added to the database.This system is shared globally,compiling data from 9 countries/regionsUnited States,Great Britain,Germany,France,Italy,Mexico;Domestic and Maquiladora,Spain,and Portugual.Machines and Materials are updated annually.Raw material suppliers are contacted every year,and the new cost is entered into the system.Machine manufactures are contacted on a three year cycle.During the preceding two years,the PPI(Purchased Price Index,supplied by the Bureau of Labor Statistics)is utilized to update cost on an annual basis.The PPI method of updating has proved to be very accurate,within 1/2%of the new quotes from the manufacturers.5 5 ABC Activity Based Costing Cost Elements;n Materials (includes raw matl.and purchased components)n Labor Direct Labor Indirect Labor(Non-Skilled)Fringe Benefits MRO Labor(Skilled)n Equipment Overhead(Burden)DepreciationDepreciationInterest(Opportunity cost)Interest(Opportunity cost)FloorspaceFloorspace Cost(Building and Expenses)Cost(Building and Expenses)MRO-Equipment Maintenance (Non-Labor)MRO-Equipment Maintenance (Non-Labor)MRO-Tooling Maintenance(Non-Labor)MRO-Tooling Maintenance(Non-Labor)UtilitiesUtilitiesIndirect MaterialsIndirect MaterialsInsuranceInsurancen Markups (includes SGA,Profit,End-Item scrap,RD&E,etc)6 6 Cost Estimate Diagram MATERIALLABORBURDENMARKUPSDirect IndirectFringeManufacturingOverheadMRO LaborEnd Item ScrapSG&AProfitRaw MaterialPurchased PartsED&TTOTALLABORTOTAL MFG.COST0-0.7%VariesVariesVaries TOTALESTIMATED PC.PRICE7 7 ABC Activity Based Costing LABOR PRESENTATION8 8 Activity Based Costing LABOR DIRECT LABORnWages of person performing manufacturing process.(Value added operations)nGenerally expressed in rate per hournCurrently there are 11 primary categories available in CAPE;General ManufacturingWiringForgingElectrical/ElectronicsRubber&Plastics Textiles FabricationAutomotive StampingAir BagBody in WhiteTool&DieNon-Ferrous FoundrynEach Primary category has 3 to 4 sub categoriesSub categories are skill level based9 9 Activity Based CostingLABORDIRECT LABOR CATEGORIES Labor Group CodesAGeneral ManufacturingCForgingDElectrical/ElectronicsERubber/PlasticsGTextile FabricationHWiringJAir Bag(Special Studied)KBody in WhiteMAutomotive StampingPNon-Ferrous FoundryTTool and DieCode DescriptionCode DescriptionSkill Factor CodesA Low Skill Level C High Skill LevelB Medium Skill LevelS Special StudiedAA General Manufacturing/Low SkillEB Rubber Fabrication/Medium SkillKC Body in White Fab./High Skill Examples:1010nLabor specifically identified with a value-added 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 commodity.This includes union and non-union 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.nResourcesU.S.Department of Labor,Bureau of Labor Statistics;Employment&Earnings ReportU.S.Bureau of Census Survey of ManufacturesHistorical documentation;Supplier/Estimator Feedback Activity Based Costing LABOR DIRECT LABOR1111 Activity Based Costing LABOR INDIRECT LABORnPersonnel not directly associated with manufacturing processSuch as;Material Handlers,Shipping/Receiving,Quality Control,First Line Supervision&Manufacturing Engineering,etc.n Expressed as a percentage of Direct Labor.Studies have shown proportional cost relationships between Direct and Indirect labor within commodities.Indirect labor support is applied to individual commodity categories.nExamples:Direct Labor Cost Indirect Labor Cost General Manufacturing;$1.00$0.55Rubber&Plastics$1.00$0.70Automotive Stamping$1.00$0.75Body in White$1.00$1.05nResourcesIndustrial Technologies InstituteAmerican Foundrymens AssociationHistorical documentation;Supplier/Estimator Feedback 1212 Activity Based Costing LABOR FRINGE BENEFITSnPersonnel BenefitsSuch as;Shift premiums,vacation/holiday pay,insurance,pensions,tuition reimbursements,clothing allowances,etc.n Expressed as a percentage of Direct&Indirect LaborFringe benefits are applied to both the Direct&Indirect personnelUnlike Indirect Labor,the percentage of fringe is consistent across commodities.Currently(2003)recognized at 50%.nResourcesU.S.Department of Labor,Bureau of Labor StatisticsCompensation&Working Conditions ReportFord Internal DataHistorical documentation;Supplier/Estimator Feedback 1313 Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORn nPersonnel supporting Equipment,Tooling&BuildingPersonnel supporting Equipment,Tooling&Building Skill Trades Labor,including machine repair,electricians,millwrights,pipefitters,tool&die repair,etc.nCost 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.n nCost is based on the investment valueCost 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 ToolingBuilding1414 Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORnResources;R.S.Means Construction and Maintenance ModelsMarshall and Shift;Construction AppraisalFord Land DevelopmentEuropean Database,Manufacturing Engineering StudyFord Internal Maintenance studiesEquipment ManufacturersEquipment and ToolingBuilding1515 Activity Based Costing LABOR Labor Summary:Labor GroupDirect Labor12.56 13.95 15.35Indirect Labor 6.91 7.67 8.44Fringe Benefit 9.93 11.03 12.13 MRO Labor .96 .96 .96General ManufacturingAAABACTotal Labor Rate/hour 30.36 33.61 36.88(50%of dir.+Ind.Labor)(50%of dir.+Ind.Labor)(55%of direct Labor)(55%of direct Labor)(MRO Labor remains constant becauseit is based on Machine&Floorspace,notDirect Labor wage)1616 Activity Based Costing LABOR Labor-Question&AnswersnWhen Im negotiating with a supplier,should I change my direct labor rate/hour to match the supplier?No.The direct labor rate is based on the national average,which we believe is the competitive wage all suppliers should be measured against.nDo these rates reflect union shops?Union shops are included in the study,as well as non-union shops.Regardless if the supplier is union or not,it is their responsibility to remain competitive.We treat all suppliers equally,not allowing anyone an advantage over another.n nHow often are rates updated?How often are rates updated?We update all the rates annually.Each year the rates are based on We update all the rates annually.Each year the rates are based on January 1st economics.January 1st economics.nAre rates/hour based on the region of the country?No,we do not segment the rates by region,only by commodity and skill level.1717 Activity Based Costing LABOR Labor-Question&AnswersnIf 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 No.It means for every dollar spent on direct wages,there are$.55 dollars spent for indirect support.spent for indirect support.nIsnt 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 compare Fords indirect percentage to a suppliers,you should combine both the“indirect category”along with the the MRO Labor category.nWhere is Scrap compensated?There are two types of scrap;(1)process scrap is determined by the estimator and applied in the estimate as an allowance,(2)end-item scrap,is a minimal amount applied to finished good,to compensate for destructive testing,damage in transit,etc.1818 ABC Activity Based Costing BURDEN PRESENTATION (MANUFACTURING OVERHEAD)1919 ABC Activity Based Costing Terminology;n“PPI”-Purchased Price Index,Bureau of Labor StatisticsnLifetime Years-Expected life of equipmentnOpportunity Cost-Also referred to as Interest costnMRO(Maintenance,Repair&Other)nSG&A(Sales,General&Administration)nRD&E(Research,Development&Engineering)nWork Pattern-20 hrs/day,237 days/yearnTechnical Availability-Expected Uptime of equipmentnManning Type-three levels1.Direct labor head associated with equipment2.No direct labor head,but requires indirect support(robots,automation)3.No direct labor or indirect labor required(conveyors)2020 Activity Based Costing BURDEN DEPRECIATIONnThe means of compensating supplier for capital equipment used in the production of Ford parts.nFord does not assume total capacity,we pay for what we use.It is the suppliers responsibility to sell their available equipment time.(These costs are paid in SGA allowance).nFord utilizes the straight line method of depreciation over the entire useful life of the machine.This way the equipment is devalued by a constant amount.Many companies use accelerated depreciation for tax purposes.Tax accounting depreciation rules are not necessarily an equitable way to determine a fair price for a given product.nFord should never pay the entire cost of any capital equipment over the life of a program,unless the expected useful life of that capital is equal to or less than the life of the program.2121 Activity Based Costing BURDEN STRAIGHT LINE DEPRECIATION METHODnFormula;(Initial Capital Value)+(Freight&Installation)-(Residual Value)(Lifetime hours)20 hrs/day x 237 days/yr x 86%utilization x 10 yrsnAssumptions;Initial Capital Cost$500,000 -Cost of MachineFreight&Installation$50,000-10%default if not availableResidual Value$25,000-5%default salvage value if not availableLifetime hours40,760 hrs$500,000+$50,000-$25,000 =$525,000 =$12.88/hr.=$.2147/min 40,760 40,7602222 Activity Based Costing BURDEN INTERESTnInterest is intended to compensate suppliers for the opportunity cost incurred in owning assets used to produce parts for Ford and should approximate the return on invested capital for a low risk investment.nThe interest rate is applied to the cost of capital and included in the burden rate.Current 2003 interest calculation is 6.1%.It is Cost Optimizations policy to NEVER allow a higher interest rate than that provided by the Special Studies section,burden analysis2323 Activity Based Costing BURDEN INTEREST CALCULATION FORMULA;(Initial Investment x 50%)x(Interest amount)(Initial Investment x 50%)x(Interest amount)Annual HoursAnnual HoursAssumption;Assumption;Initial investment$100,000Initial investment$100,000Interest amount 6.1%Interest amount 6.1%Equipment Utilization 90%Equipment Utilization 90%($100,000 x .5)x.061($100,000 x .5)x.061 =$50,000 x .061$50,000 x .061 =$3,050$3,050 =$.715/hr =$.715/hr =$.011/min 20 x 237 x 90%4266 20 x 237 x 90%4266 4266 42662424 Activity Based Costing BURDEN INSURANCEnThis category represents the insurance for equipment capital only.The insurance for the building is included in the floorspace allocation.nInsurance recovery cost is applied as a percent of capital.As the equipment value increases,so does the amount of insurance expense.nFORMULA;(Insurance Percentage)x (Replacement Value of Equipment)Annual HoursAssumption;Capital$500,000,Freight&Installation$50,000,Residual Value$25,000Replacement value=$500,000+$50,000-$25,000=$525,000Insurance factor.5%.5%x$525,000 =$2,625 =$.644/hr.=$.011/min.4076 hr/yr 40762525 Activity Based Costing BURDEN UTILITIESnThis category compensates 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.nUtility costs are applied to the burden rate in the appropriate units of measure,example;electricity is in Kilowatts per hour,compressed air is in cubic meters,etc.nUtility cost per unit is not based on any particular region or manufacturer,it is published as a national average.This measures suppliers on a level playing field,without penalizing a suppliers competitive advantage.RESOURCES;nConsumers Energy NewsnFord Internal Manufacturing facilities2626 Activity Based Costing BURDEN INDIRECT MATERIALSnThis category compensates the supplier for the Indirect materials,consumed by the equipment during the manufacture of products.These include;hydraulic oil,cutting oils,acetylene gas,etc.This does not include the amount stored in a tank or reservoir,but the amount exhausted during the production hour.nIndirect material costs are applied to the burden rate,as consumed,in the appropriate units of measure,eg.kilograms,liters,cubic meters,etcRESOURCES;nManufacturers of materialsnFord Internal Manufacturing facilities2727 Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENn nMRO Burden for Equipment&ToolingMRO Burden for Equipment&ToolingCost applied to these segments are separated between the c