福特的ABC成本培训资料（英文版）.pptx

1、 ABC Activity Based Costing/GRIMMTRAINING PRESENTATION 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 Que

2、stions&Answers.Pg.17-18TABLE OF CONTENTS: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 Presentation A

3、BC 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.Activity Based Cost SystemIdentifies the uniqueness of each products processing method to de

4、termine overhead allocation,and applies the cost based on the major elements(Cost Drivers).Good 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 sup

5、plier for comparison information.Not a“one-sided”sharing process.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 technologi

6、es 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

7、 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

8、has proved to be very accurate,within 1/2%of the new quotes from the manufacturers.ABC Activity Based Costing Cost Elements;n Materials (includes raw matl.and purchased components)n LaborDirect Labor Indirect Labor(Non-Skilled)Fringe Benefits MRO Labor(Skilled)n Equipment Overhead(Burden)n Markups (

9、includes SGA,Profit,End-Item scrap,RD&E,etc)Cost Estimate DiagramMATERIALLABORBURDENMARKUPSDirect IndirectFringeManufacturingOverheadMRO LaborEnd Item ScrapSG&AProfitRaw MaterialPurchased PartsED&TTOTALLABORTOTAL MFG.COST0-0.7%VariesVariesVaries TOTALESTIMATED PC.PRICE LABOR PRESENTATION Activity Ba

10、sed 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 FabricationAutomo

11、tive StampingAir BagBody in WhiteTool&DieNon-Ferrous FoundrynEach Primary category has 3 to 4 sub categoriesSub categories are skill level based Activity Based CostingLABORDIRECT LABOR CATEGORIES Labor Group CodesAGeneral ManufacturingCForgingDElectrical/ElectronicsERubber/PlasticsGTextile Fabricati

12、onHWiringJAir 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

13、in White Fab./High Skill Examples:nLabor 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 no

14、n-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

15、 Survey of ManufacturesHistorical documentation;Supplier/Estimator Feedback Activity Based Costing LABOR DIRECT LABOR Activity Based Costing LABOR INDIRECT LABORnPersonnel not directly associated with manufacturing processSuch as;Material Handlers,Shipping/Receiving,Quality Control,First Line Superv

16、ision&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

17、 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 Activity Based Costing LABOR FRINGE BENEFITSnPersonnel Benefit

18、sSuch 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 comm

19、odities.Currently(2003)recognized at 50%.nResourcesU.S.Department of Labor,Bureau of Labor StatisticsCompensation&Working Conditions ReportFord Internal DataHistorical documentation;Supplier/Estimator Feedback Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORSkill Trades Labor,includin

20、g 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.The syst

21、em applies a percentage factor to the investment,so that as the capital requirement increases,so does the amount of maintenance funding.Equipment and ToolingBuilding Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORnResources;R.S.Means Construction and Maintenance Models Marshall and S

22、hift;Construction Appraisal Ford Land Development European Database,Manufacturing Engineering Study Ford Internal Maintenance studies Equipment ManufacturersEquipment and ToolingBuildingActivity Based CostingLabor Summary:Labor GroupDirect Labor12.56 13.95 15.35Indirect Labor 6.91 7.67 8.44Fringe Be

23、nefit 9.93 11.03 12.13 MRO Labor .96 .96 .96General ManufacturingAAABACTotal Labor Rate/hour 30.36 33.61 36.88(MRO Labor remains constant becauseit is based on Machine&Floorspace,notDirect Labor wage)Activity Based CostingLabor-Question&AnswersnWhen Im negotiating with a supplier,should I change my

24、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

25、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.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.Activity Based Cost

26、ingLabor-Question&AnswersnIf Indirect labor is 55%of Direct Labor,does that mean there are.55 heads indirect for every direct head?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 compar

27、e 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 m

28、inimal amount applied to finished good,to compensate for destructive testing,damage in transit,etc.ABC Activity Based Costing BURDEN PRESENTATION(MANUFACTURING OVERHEAD)ABC Activity Based Costing Terminology;n“PPI”-Purchased Price Index,Bureau of Labor StatisticsnLifetime Years-Expected life of equi

29、pmentnOpportunity 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 asso

30、ciated with equipment2.No direct labor head,but requires indirect support(robots,automation)3.No direct labor or indirect labor required(conveyors)Activity Based Costing BURDEN DEPRECIATIONnThe means of compensating supplier for capital equipment used in the production of Ford parts.nFord does not a

31、ssume 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 con

32、stant 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 expecte

33、d useful life of that capital is equal to or less than the life of the program.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

34、 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 40,760 Activity Based Costing BURDEN INTERESTnInterest i

35、s 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 inter

36、est 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 analysis Activity Based Costing BURDEN INTEREST CALCULATION FORMULA;$.011/min Activity Based Costing BURDEN INSURANCEnThis category represents the in

37、surance 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 Equip

38、ment)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 4076 Activity Based Costing BURDEN UTILITIESnThis category compensates the supplier

39、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

40、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 Manufactu

41、ring facilities 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

42、 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 facilities Activity Based Co

43、sting BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENCost applied to these segments are separated between the capital cost of the equipment/tooling and operating supplies.Equipment and ToolingThese costs apply to the Plant Engineering and Tool shop equipment necessary to maintain machines and tools.It is

44、 the responsibility of the supplier to keep their equipment/tooling in good operating condition to assure Ford quality standards and efficient productivity levels.Capital recovery cost is applied as a percent of investment.Operating Supplies include spare parts,perishable tooling,safety equipment,gl

45、oves,etc.Operating Supplies recovery cost is applied as a percent of investment.Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENThe maintenance of the machine or tool is predicated on the assumption that the equipment and tool is new.Its logical,that at the beginning of production,t

46、he required maintenance will be a minor amount,and increase during its expected life.Our rates,however,generate an average amount,constant over the entire life,thus over compensating during the 1st-half and possibly under compensating on the 2nd-half.RESOURCES;Equipment ManufacturersInternal Ford Ma

47、nufacturing FacilitiesHistorical Maintenance SchedulesEuropean Industrial HandbookEquipment and Tooling Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDEN Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENthe BuildingBuilding Activity Based Costing BURDEN MAINTENANCE,RE

48、PAIR&OTHER(MRO)BURDENnOperating supplies cost of the BuildingOperating supplies recovery cost is presented in the burden rate as a cost per square meter/per hourBuilding Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENnFloorspace Allocation Formula;Building Activity Based Costing BU

49、RDENnDepreciation-Straight line methodnInterest-(Opportunity Cost)nInsurance nUtilities nIndirect MaterialsnMRO BurdenSUMMARY;Activity Based Costing BURDENnDepreciation:Replacement Value/Lifetime hoursnInterest:(Capital+Installation)/2)x Interest rate)/annual hoursnInsurance:Replacement cost x insur

50、ance percentage /annual hours*percent varies with type of equipment,ex.paint vs assembly equipmentnUtilities:(Cost per unit of measure)x machine usagenInd.Matls:(Cost per unit of measure)x machine usagenMRO Burden:-Equipment and Tooling Percentage factor x(Capital+Installation)/annual hoursnMRO Burd