Integration of Mahalanobis-Taguchi System and activity based costing for remanufacturing decision

Abstract

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.

Binary Bitwise Artificial Bee Colony as Feature Selection Optimization Approach within Taguchi’s T-Method

“…MTS establishes a multivariate measurement scale that recognizes a normal or healthy observation from an abnormal or an unhealthy observation and integrates it with the concept of signal-to-noise ratio (SNR) and orthogonal array (OA). Beginning with the introduction of the MT-Method as a classification technique that has so far gained much attention among scholars [7][8][9][10][11][12][13][14], Taguchi's T-Method has been established since then, which has utilized the same integration principles. e unit-space concept, the duplicate signal-to-noise ratio (SNR) adaptation as a weighting factor, zero-proportional theory, and OA as the feature selection optimization are the main elements that have been adopted in reinforcing Taguchi's T-Method robustness.…”

Comparative Study: Activity Based Costing and Time Driven Activity Based Costing in Electronic Industry

“…Management also allowed to set up an efficient budget in order to maintenance the efficiency of particular treatment. Surprisingly, [26] applied ABC in the palm oil plantation while [27][28][29] developed a distinctive pattern of crankshaft and identify the critical and non-critical parameter of crankshaft based on the Mahalanobis Taguchi System, then applied ABC as a method of estimation for the remanufacturing cost of crankshaft.…”

Assessment the Unused Capacity Using Time Driven Activity Based Costing in Automotive Manufacturing Industry

“…ABC systems are often implemented to reduce costs in operational departments in controlled and simultaneous manner [7], [6] confirming from their survey that ABC serves short-term output management and able to improve the service quality. [8] developed a distinctive pattern of crankshaft and identify the critical and non-critical parameter of crankshaft based on the Mahalanobis Taguchi System (MTS), then applied the ABC as a method of estimation for the re-manufacturing cost of crankshaft to prove that the integration of MTS-ABC was interesting. According to [9], the ABC model is used to improve the overhead management system significantly by providing the best management decision-making information.…”