No abstract

The fourth industrial revolution (IR 4.0) is built upon the digital revolution where technology and people are connected. It does not just present modern techniques for supporting aspects within industry but cover as well the sustainability. Thus, it is very important for electric and electronic (E&E) industry to develop a new technique for a better quality evaluation of product. The aim of this work is to apply Mahalanobis-Taguchi System (MTS) in production environment at E&E industry for a better quality evaluation. MTS is used to classify normal and abnormal observations and optimize various parameters in workstation to produce a better quality product. This work found that positive gain through signal to ratio (SNR) indicated the quality of system still in good condition from February with 0.1244 until December with 0.4432 after insignificant variable have been removed. This work also suggested condition of core should be removed since the variable does not contribute to the system along 2018. Meanwhile, some variables are showed inconsistency of significant to the system such as wire condition, epoxy condition, lead part condition and soldering condition. This concluded that MTS is a practical method for classification and optimization in the industry.

Remanufacturing is a process that returns the second hand and used product that have theperformance similar or better than the new product. The remanufacturer cannot bepredicting the end of life (EOL) of crankshaft to remanufacture, repair or reject due to thelimited information provided by Original Equipment Manufacturer (OEM) which depend on atraditional inspection to make a decision. Subsequently, Traditional Cost Accounting (TCA)which the manufacturing overhead are driven by the production volume are being applied.The aim of this work is to develop a distinctive pattern of crankshaft and identify the criticaland non-critical parameter of crankshaft based on the Mahalanobis Taguchi System (MTS),then applied the Activity Based Costing (ABC) as a method of estimation for theremanufacturing cost of crankshaft. In methodology, the scatter diagram is construct todevelop the pattern recognition using T Method-3, Taguchi orthogonal array (OA) areapplied to identify the important parameter using T Method and lastly, the ABC system isanalysed the costing of critical parameters. Quality inspection is the most important in qualityinspection to reduce the number of parameter of each engine model and to compare whichcosting system can produce the cheapest price. Therefore, it is also to prove the combinationof applying MTS method with ABC system will make the profitability and manufacturing costare more accurate.

By the 1980s, Traditional Cost Accounting (TCA) is no longer reflecting the current economic reality due to distorted information about the profitability of their orders, products, and customers. In addition, Activity-based Costing (ABC) is a costing method originally developed to overcome the shortcoming of TCA method in the era of rapidly increasing product complexity and diversification. However, it is not universally accepted because it ignores the potential for unused capacity which will be beneficial for forecasting. The objective of this work is to compare the advantages of ABC and Time-driven Activity-Based Costing (TDABC) by analyzing the features towards costing sustainment. The work begins by collecting data at electric electronic industry located at Pahang and the product selected is a magnetic inductor. ABC focuses on the costs inherent in the activity based products to produce, distribute or support the products concerned. TDABC uses time equation and capacity cost rate (CCR) to measure the unused capacity with respect to the time and cost. This work has successfully compares the methodology between ABC and TDABC in electronic industry. The item such as stages for cost allocation, determination of drivers, action taken for an additional activity, cost consideration for implementation, system building, system update, information given from each method, transparency, overestimation of cost, differentiation of service level, oversimplification of activities and capacity forecast and planning. It concludes that both have their strength according to the industry needs.

Traditional cost accounting applied by most remanufacturing industries assumes that manufacturing overheads are driven by the volume of production. However, this would not give a good measure of the actual manufacturing cost per unit because the overheads should actually be apportioned over the number of activities that are required to perform. Eventually, the cost of remanufactured crankshaft becomes obviously incorrect while the profitability becomes vague. The aim of this work is to estimate the cost of remanufactured crankshaft using activity based costing. The overhead costs are apportioned to activity drivers in accordance with the way resources are consumed and then, the overhead costs are apportioned from each activity driver to each cost object in proportion to the amount of the cost driver consumed by the product. The proposed method is validated by an industrial practitioner and expected to be able to serve as a useful approach because it produces a cost with accurate allocation of overhead, provides cost information on the cost drivers and produces accurate manufacturing cost and profitability information. This work is also supported by the Ministry of International Trade and Industry of Malaysia by proposing accurate allocation of overhead to strengthen the national remanufacturing policies for the development of remanufacturing industries as these industries need to sustain their end of life products.