Lizhang Zhuang and George Burns
The recent social and economic changes have resulted in apolarization of product standardization. While some products areconstantly demanded to be of internationally recognized…
Abstract
The recent social and economic changes have resulted in a polarization of product standardization. While some products are constantly demanded to be of internationally recognized standards, others are increasingly required to cater for the needs of individual customers. A growing number of manufacturers serving the latter market are therefore being pushed into a Non‐standard Route Manufacturing (NSRM) situation where product volatility is the norm. Common problems facing these firms include marketing strategies, product costing, and corporate business planning. Under the circumstances product classification is identified as an effective tool to tackle these problems. Based on dissection theory, proposes a Cost Based Product Classification (CBPC) system. The establishment of a CBPC system consists of two major stages, system design and system use. Following a step‐by‐step guide, includes a practical example demonstrating how a system of this kind may be implemented.
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Lizhang Zhuang and George Burns
Looks at how Activity‐Based Costing (ABC) may be implemented insectors consisting of Non‐Standard Route Manufacturers (NSRM). Followinga brief summary of ABC, introduces the…
Abstract
Looks at how Activity‐Based Costing (ABC) may be implemented in sectors consisting of Non‐Standard Route Manufacturers (NSRM). Following a brief summary of ABC, introduces the concept of NSRM. Within the context of a selected knitwear company, identifies a three‐stage procedure with attention focused on the first stage. product classification. A three‐division model was developed and proved more satisfactory, when tested, than a five‐division one. The finalized product classification scheme based on this model is then devised to reduce the number of product categories from 250 to nine. With the classification scheme gives an example which illustrates how ABC works compared with the previous costing approach.
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Lizhang Zhuang and George Burns
The fast‐changing manufacturing environment has been the prime cause ofa company′s growing dissatisfaction with its production informationsystem, which ultimately led to the…
Abstract
The fast‐changing manufacturing environment has been the prime cause of a company′s growing dissatisfaction with its production information system, which ultimately led to the realization of the need for an Integrated Manufacturing Information System (IMIS). A three‐stage procedure was established to assist the investment decision, which involved informal communication, project appraisal, and installation planning. While the long‐term impact of the IMIS on the company′s business operation is yet to be fully understood, its short‐term benefits are being realized. These include substantial savings on overheads, a marked increase in productive hours, and promising improvement in productivity.