Electrical and electronic industry is one of Malaysia’s leading industries which covers around 24.5% in manufacturing production sector. With a continuous innovation of the Industry, inductor component gets higher demand from customer and it is good if there is a study to convince that those factors are really significant to the production as well. Meanwhile, the current costing being used is difficult to access the complete activities required for each workstation and need separate analysis to measure the un-used capacity in term of resources and cost. The objective of this work is to clarify the relationship between Mahalanobis-Taguchi system (MTS) and time driven activity-based costing (TDABC) in the electronic industry. The data collection is focused on inductor component by consiedring the historical data in 2018. MTS is used as a method to optimize various parameters while TDABC is used to measure the un-used capacity by constructing the time equation and capacity cost rate. There are 7 parameters considered which are condition of wire, condition of winding, condition of epoxy, condition of core, condition of lead part, condition of marking and condition of soldering. As a result, MTS is successfully developed the normal and abnormal Mahalanobis distance (MD). In February, the normal MD is 0.9998 and the abnormal is 15.6538 with 2 significant parameters with signal to noise is 0.1244. In addition, there are 3 parameters consistently influenced along 10 months such as condition of core, condition of lead part and condition of soldering and 2 parameters are not consistently influenced such as condition of epoxy and condition marking. On the other hand, the total used and un-used capacity of time are 257124.02 minutes and 5217031.43 minutes respectively while the total of used and un-used of cost are MYR6,296,493.10 and MYR6214807.07 respectively. Eventually, this work concludes that both methods are a great tool and feasible to be implemented in the electronic industry.

Speedy improvements in cost accounting since the 1960s have been noticed, particularly after the 1980s, in the percentage of total cost, overhead costs have increased. The problem of overhead allocation was faced by several companies and a disparity between the available methods of overhead allocation was developed. Because of skewed facts about the viability of their orders, goods and clients, traditional cost accounting (TCA) not anymore represents the actual economic reality. Consequently, in the moment of increasingly growing material liquidity and ambiguity, a new costing approach is needed to address the weakness of TCA. The goal of the study is to establish a new costing structure using activity based costing (ABC) method to the magnetic inductor for better precision. The case study is located at electronic industry in Pahang, Malaysia. ABC reports on the costs of manufacturing, selling or funding the goods used in the operations. The job was done correctly by the operator to accomplish the entire mission. The maximum time used by operators is at epoxy application activity which is 44.04% and the smallest is 0.64% at oven curing and boundary inspection activity. The highest amount of cost of capacity is epoxy application activity with MYR 1,665,600.00 and the quantity of material utilized is selected as the cost driver. Since the product required volume is up to 10%, production costs are expected to increase by MYR 4,160,614.85 while the unit product cost is forecast at MYR 0.79. Therefore, ABC is an cost management insightful process and cost control efficient approach.