福特公司ABC成本法培训资料英文版课件.ppt（35页）

1、1 Activity Based Costing/GRIMMvABC Definition/Disclosure/Background Pg.4&5vElements of a Cost Estimate&Diagram Pg.6&7vDirect Labor.Pg.9-11vIndirect Labor.Pg.12vFringe Benefits.Pg.13vMRO Labor.Pg.14&15vLabor Summary.Pg.16vLABOR Frequently asked Questions&Answers.Pg.17-18TABLE OF CONTENTS:2 Activity B

2、ased Costing/GRIMMvDepreciation Pg.21&22vInterest.Pg.23&24vInsurance .Pg.25vUtilities.Pg.26vIndirect Materials.Pg.27vMRO(Burden).Pg.28-33 vBurden Summary.Pg.34&35vFrequently asked Burden Questions&Answers.Pg.36TABLE OF CONTENTS:Burden Presentation3 ABC Activity Based Costing What is GRIMM and ABC?nG

3、RIMM-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 determine overhead allocation,and applies the cost b

4、ased 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 supplier for comparison information.Not a“one-sided”s

5、haring process.4 ABC Activity Based Costing vGRIMM 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 th

6、e 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 entere

7、d 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

8、 new quotes from the manufacturers.5 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 (includes SGA,Profit,End-Item scrap,RD&E,etc)6

9、Cost Estimate DiagramMATERIALLABORBURDENMARKUPSDirect IndirectFringeManufacturingOverheadMRO LaborEnd Item ScrapSG&AProfitRaw MaterialPurchased PartsED&TTOTALLABORTOTAL MFG.COST0-0.7%VariesVariesVaries TOTALESTIMATED PC.PRICE7 LABOR PRESENTATION8 Activity Based Costing LABOR DIRECT LABORvWages of pe

10、rson performing manufacturing process.(Value added operations)vGenerally expressed in rate per hourvCurrently there are 11 primary categories available in CAPE;General ManufacturingWiringForgingElectrical/ElectronicsRubber&Plastics Textiles FabricationAutomotive StampingAir BagBody in WhiteTool&DieN

11、on-Ferrous FoundryvEach Primary category has 3 to 4 sub categoriesSub categories are skill level based9 Activity Based CostingLABORDIRECT LABOR CATEGORIES Labor Group CodesAGeneral ManufacturingCForgingDElectrical/ElectronicsERubber/PlasticsGTextile FabricationHWiringJAir Bag(Special Studied)KBody i

12、n 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:10vLabo

13、r 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 ta

14、rgeted 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.vResourcesU.S.Department of Labor,Bureau of Labor Statistics;vEmployment&Earnings ReportU.S.Bureau of Census Survey of ManufacturesHistorical docu

15、mentation;Supplier/Estimator Feedback Activity Based Costing LABOR DIRECT LABOR11 Activity Based Costing LABOR INDIRECT LABORvPersonnel not directly associated with manufacturing processSuch as;Material Handlers,Shipping/Receiving,Quality Control,First Line Supervision&Manufacturing Engineering,etc.

16、v 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.vExamples:Direct Labor Cost Indirect Labor Cost General Manufacturing;$1.00$0.55Rub

17、ber&Plastics$1.00$0.70Automotive Stamping$1.00$0.75Body in White$1.00$1.05vResourcesIndustrial Technologies InstituteAmerican Foundrymens AssociationHistorical documentation;Supplier/Estimator Feedback 12 Activity Based Costing LABOR FRINGE BENEFITSvPersonnel BenefitsSuch as;Shift premiums,vacation/

18、holiday pay,insurance,pensions,tuition reimbursements,clothing allowances,etc.v 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

19、 at 50%.vResourcesU.S.Department of Labor,Bureau of Labor StatisticsCompensation&Working Conditions ReportFord Internal DataHistorical documentation;Supplier/Estimator Feedback 13 Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORSkill Trades Labor,including machine repair,electricians,

20、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 system applies a percentage factor

21、 to the investment,so that as the capital requirement increases,so does the amount of maintenance funding.Equipment and ToolingBuilding14 Activity Based Costing LABOR MAINTENANCE,REPAIR&OTHER(MRO)LABORnResources;R.S.Means Construction and Maintenance ModelsMarshall and Shift;Construction AppraisalFo

22、rd Land DevelopmentEuropean Database,Manufacturing Engineering StudyFord Internal Maintenance studiesEquipment ManufacturersEquipment and ToolingBuilding15Activity Based CostingLabor Summary:Labor GroupDirect Labor12.56 13.95 15.35Indirect Labor 6.91 7.67 8.44Fringe Benefit 9.93 11.03 12.13 MRO Labo

23、r .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)16Activity Based CostingLabor-Question&AnswersnWhen Im negotiating with a supplier,should I change my direct labor rate/hour to mat

24、ch 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,

25、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.17Activity Based CostingLabor-Question&AnswersnI

26、f 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 compare Fords indirect percentage

27、 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 fi

28、nished good,to compensate for destructive testing,damage in transit,etc.18 ABC Activity Based Costing BURDEN PRESENTATION(MANUFACTURING OVERHEAD)19 ABC Activity Based Costing Terminology;v“PPI”-Purchased Price Index,Bureau of Labor StatisticsvLifetime Years-Expected life of equipmentvOpportunity Cos

29、t-Also referred to as Interest costvMRO(Maintenance,Repair&Other)vSG&A(Sales,General&Administration)vRD&E(Research,Development&Engineering)vWork Pattern-20 hrs/day,237 days/yearvTechnical Availability-Expected Uptime of equipmentvManning Type-three levels1.Direct labor head associated with equipment

30、2.No direct labor head,but requires indirect support(robots,automation)3.No direct labor or indirect labor required(conveyors)20 Activity Based Costing BURDEN DEPRECIATIONvThe means of compensating supplier for capital equipment used in the production of Ford parts.vFord does not assume total capaci

31、ty,we pay for what we use.It is the suppliers responsibility to sell their available equipment time.(These costs are paid in SGA allowance).vFord 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

32、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.vFord should never pay the entire cost of any capital equipment over the life of a program,unless the expected useful life of t

33、hat capital is equal to or less than the life of the program.21 Activity Based Costing BURDEN STRAIGHT LINE DEPRECIATION METHODvFormula;(Initial Capital Value)+(Freight&Installation)-(Residual Value)(Lifetime hours)20 hrs/day x 237 days/yr x 86%utilization x 10 yrsvAssumptions;Initial Capital Cost$5

34、00,000 -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 40,76022 Activity Based Costing BURDEN INTERESTvInterest is intended to

35、 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.vThe interest rate is applied to the cost of capital and included in the burden rate.Current 2003 interest calculati

36、on is 6.1%.It is Cost Optimizations policy to NEVER allow a higher interest rate than that provided by the Special Studies section,burden analysis23 Activity Based Costing BURDEN INTEREST CALCULATION FORMULA;$.011/min24 Activity Based Costing BURDEN INSURANCEvThis category represents the insurance f

37、or equipment capital only.The insurance for the building is included in the floorspace allocation.vInsurance recovery cost is applied as a percent of capital.As the equipment value increases,so does the amount of insurance expense.vFORMULA;(Insurance Percentage)x (Replacement Value of Equipment)Annu

38、al 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 407625 Activity Based Costing BURDEN UTILITIESvThis category compensates the supplier for the

39、 utility consumption of the equipment during the manufacture of products.As with insurance,the building utilities are included in the building cost models.vUtility costs are applied to the burden rate in the appropriate units of measure,example;electricity is in Kilowatts per hour,compressed air is

40、in cubic meters,etc.vUtility 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;vConsumers Energy NewsvFord Internal Manufacturing fa

41、cilities26 Activity Based Costing BURDEN INDIRECT MATERIALSvThis 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 r

42、eservoir,but the amount exhausted during the production hour.vIndirect material costs are applied to the burden rate,as consumed,in the appropriate units of measure,eg.kilograms,liters,cubic meters,etcRESOURCES;vManufacturers of materialsvFord Internal Manufacturing facilities27 Activity Based Costi

43、ng 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 th

44、e 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,glove

45、s,etc.Operating Supplies recovery cost is applied as a percent of investment.28 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 Tooling29 Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDEN30 Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENthe BuildingBuilding31 Activity Based Costing BURDEN MAINTENA

48、NCE,REPAIR&OTHER(MRO)BURDENnOperating supplies cost of the BuildingOperating supplies recovery cost is presented in the burden rate as a cost per square meter/per hourBuilding32 Activity Based Costing BURDEN MAINTENANCE,REPAIR&OTHER(MRO)BURDENnFloorspace Allocation Formula;Building33 Activity Based

49、Costing BURDENnDepreciation-Straight line methodnInterest-(Opportunity Cost)nInsurance nUtilities nIndirect MaterialsnMRO BurdenSUMMARY;34 Activity Based Costing BURDENvDepreciation:Replacement Value/Lifetime hoursvInterest:(Capital+Installation)/2)x Interest rate)/annual hoursvInsurance:Replacement

50、 cost x insurance percentage /annual hours*percent varies with type of equipment,ex.paint vs assembly equipmentvUtilities:(Cost per unit of measure)x machine usagevInd.Matls:(Cost per unit of measure)x machine usagevMRO Burden:-Equipment and Tooling Percentage factor x(Capital+Installation)/annual h