福特的ABC成本培训资料(2)

1、 ABC Activity Based Costing/GRIMMTRAINING PRESENTATION7/15/20221 Activity Based Costing/GRIMMABC Definition / Disclosure / Background Pg. 4 & 5Elements of a Cost Estimate & Diagram Pg. 6 & 7Direct Labor .Pg. 9 - 11Indirect Labor .Pg. 12Fringe Benefits . Pg. 13MRO Labor . Pg. 14 & 15Labor Summary . P

2、g. 16LABOR Frequently asked Questions & Answers .Pg. 17 - 18TABLE OF CONTENTS:PRESENTATION PREPARED BY: Diane M. Blair (dblair12) ext. 33-78525)Burden Analysis, Cost Optimization Dept.Labor Presentation2 Activity Based Costing/GRIMMDepreciation Pg. 21 & 22Interest . Pg. 23 & 24Insurance .Pg. 25Utili

3、ties .Pg. 26Indirect Materials .Pg. 27MRO (Burden).Pg. 28 - 33 Burden Summary .Pg. 34 & 35Frequently asked Burden Questions & Answers .Pg. 36TABLE OF CONTENTS:Burden Presentation3 ABC Activity Based Costing What is GRIMM and ABC?GRIMM - Cost Optimizations DatabaseGlobal Rates and Information of Mach

4、ines 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 based on the major elements (Cost Drivers).Consistent and fa

5、ir method to compensate suppliers for product cost. Machines operating cost will remain consistent regardless of manufacturer. ConfidentialityGood judgment should be maintained when discussing equipment cost between competitive manufactures. Many machine builders request a non-disclosure agreement.S

6、ensitive material should only be shared with the supplier for comparison information. Not a “one-sided” sharing process.4 ABC Activity Based Costing GRIMM Equipment Representation;Currently the database represents over 400 equipment manufacturers, and approximately 1600 machines, 2300 raw materials,

7、 & 2900 SBOCs. (Standard Bought Out Components)New technologies are being studied and continually added to the 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.

8、Machines and Materials are updated annually. Raw material suppliers are contacted every year, and the new cost is entered 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 Statist

9、ics) 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 new quotes from the manufacturers.5 ABC Activity Based Costing Cost Elements; Materials (includes raw matl. and purchased components) Labor Direct Labor Indirect Labor (N

10、on-Skilled) Fringe Benefits MRO Labor (Skilled) Equipment Overhead (Burden)DepreciationInterest (Opportunity cost)Floorspace Cost (Building and Expenses)MRO - Equipment Maintenance (Non-Labor)MRO - Tooling Maintenance (Non-Labor)UtilitiesIndirect MaterialsInsurance Markups (includes SGA, Profit, End

11、-Item scrap, RD&E, etc)6 Cost Estimate DiagramMATERIALLABORBURDENMARKUPSDirect IndirectFringeManufacturingOverheadMRO LaborEnd Item ScrapSG & AProfitRaw MaterialPurchased PartsED & TTOTALLABORTOTAL MFG.COST0-0.7%VariesVariesVaries TOTALESTIMATED PC. PRICE7 ABC Activity Based Costing LABOR PRESENTATI

12、ON8 Activity Based Costing LABOR DIRECT LABORWages of person performing manufacturing process. (Value added operations)Generally expressed in rate per hourCurrently there are 11 primary categories available in CAPE;General ManufacturingWiringForgingElectrical / ElectronicsRubber & Plastics Textiles

13、FabricationAutomotive StampingAir BagBody in WhiteTool & DieNon-Ferrous FoundryEach Primary category has 3 to 4 sub categoriesSub categories are skill level based9 Activity Based CostingLABORDIRECT LABOR CATEGORIES Labor Group CodesAGeneral ManufacturingCForgingDElectrical / ElectronicsERubber / Pla

14、sticsGTextile FabricationHWiringJAir Bag (Special Studied)KBody in 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 Fabric

15、ation / Medium SkillKC Body in White Fab. / High Skill Examples:10Labor 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 c

16、ommodity. This includes union and non-union shops, and all regions in the targeted 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.ResourcesU.S. Department of Labor, Bureau of Labor Statistics; Emplo

17、yment & Earnings ReportU.S. Bureau of Census Survey of ManufacturesHistorical documentation; Supplier / Estimator Feedback Activity Based Costing LABOR DIRECT LABOR11 Activity Based Costing LABOR INDIRECT LABORPersonnel not directly associated with manufacturing processSuch as; Material Handlers, Sh

18、ipping/Receiving, Quality Control, First Line Supervision & Manufacturing Engineering, etc. 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 cat

19、egories. Examples: Direct Labor Cost Indirect Labor Cost General Manufacturing; $1.00 $0.55Rubber & Plastics$1.00 $0.70Automotive Stamping$1.00 $0.75Body in White$1.00 $1.05ResourcesIndustrial Technologies InstituteAmerican Foundrymens AssociationHistorical documentation; Supplier / Estimator Feedba

20、ck 12 Activity Based Costing LABOR FRINGE BENEFITSPersonnel BenefitsSuch as; Shift premiums, vacation/holiday pay, insurance, pensions, tuition reimbursements, clothing allowances, etc. Expressed as a percentage of Direct & Indirect LaborFringe benefits are applied to both the Direct & Indirect pers

21、onnelUnlike Indirect Labor, the percentage of fringe is consistent across commodities. Currently (2003) recognized at 50%. ResourcesU.S. Department of Labor, Bureau of Labor StatisticsCompensation & Working Conditions ReportFord Internal DataHistorical documentation; Supplier / Estimator Feedback 13

22、 Activity Based Costing LABOR MAINTENANCE, REPAIR & OTHER (MRO) LABORPersonnel supporting Equipment, Tooling & Building Skill Trades Labor, including machine repair, electricians, millwrights, pipefitters, tool & die repair, etc.Cost is based on building maintenance per square meter.The system appli

23、es a fully accounted skilled trades rate to the amount of floorspace required, including outside maintenance, office space, warehousing, restroom, etc.Cost is based on the investment value.The system applies a percentage factor to the investment , so that as the capital requirement increases, so doe

24、s the amount of maintenance funding. Equipment and ToolingBuilding14 Activity Based Costing LABOR MAINTENANCE, REPAIR & OTHER (MRO) LABORResources;R.S. Means Construction and Maintenance ModelsMarshall and Shift; Construction AppraisalFord Land DevelopmentEuropean Database, Manufacturing Engineering

25、 StudyFord Internal Maintenance studiesEquipment ManufacturersEquipment and ToolingBuilding15 Activity Based Costing LABOR Labor Summary:Labor GroupDirect Labor12.56 13.95 15.35Indirect Labor 6.91 7.67 8.44Fringe Benefit 9.93 11.03 12.13 MRO Labor .96 .96 .96General ManufacturingAAABACTotal Labor Ra

26、te/hour 30.36 33.61 36.88(50% of dir. + Ind. Labor)(55% of direct Labor)(MRO Labor remains constant becauseit is based on Machine & Floorspace, notDirect Labor wage)16 Activity Based Costing LABOR Labor - Question & AnswersWhen Im negotiating with a supplier, should I change my direct labor rate/hou

27、r to match 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. Do these rates reflect union shops?Union shops are included in the study, as well as non-union shops. Regardless if the supplier is u

28、nion or not, it is their responsibility to remain competitive. We treat all suppliers equally, not allowing anyone an advantage over another. How often are rates updated?We update all the rates annually. Each year the rates are based on January 1st economics.Are rates/hour based on the region of the

29、 country? No, we do not segment the rates by region, only by commodity and skill level.17 Activity Based Costing LABOR Labor - Question & AnswersIf Indirect labor is 55% of Direct Labor, does that mean there are .55 heads indirect for every direct head?No. It means for every dollar spent on direct w

30、ages, there are $.55 dollars spent for indirect support.Isnt 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 to a suppliers, you should combine both the “

31、indirect category” along with the the MRO Labor category. Where 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 finished good, to compensate for destruct

32、ive testing, damage in transit, etc.18 ABC Activity Based Costing BURDEN PRESENTATION ( MANUFACTURING OVERHEAD )19 ABC Activity Based Costing Terminology;“PPI” - Purchased Price Index, Bureau of Labor StatisticsLifetime Years - Expected life of equipmentOpportunity Cost - Also referred to as Interes

33、t costMRO (Maintenance, Repair & Other)SG&A (Sales, General & Administration)RD&E (Research, Development & Engineering)Work Pattern - 20 hrs/day, 237 days/yearTechnical Availability - Expected Uptime of equipmentManning Type - three levels1. Direct labor head associated with equipment2. No direct la

34、bor head, but requires indirect support (robots, automation)3. No direct labor or indirect labor required (conveyors)20 Activity Based Costing BURDEN DEPRECIATIONThe means of compensating supplier for capital equipment used in the production of Ford parts. Ford does not assume total capacity, we pay

35、 for what we use. It is the suppliers responsibility to sell their available equipment time. (These costs are paid in SGA allowance). Ford 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 compa

36、nies 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.Ford should never pay the entire cost of any capital equipment over the life of a program, unless the expected useful life of that

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

38、 $500,000 - 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 INTEREST

39、Interest is intended to 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. The interest rate is applied to the cost of capital and included in the burden rate. Current

40、 2003 interest calculation 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; (Initial Investment x 50%) x (Interest amount)Annual HoursAssumpt

41、ion;Initial investment $100,000Interest amount 6.1%Equipment Utilization 90%( $100,000 x .5) x .061 = $50,000 x .061 = $3,050 = $.715/hr = $.011 /min 20 x 237 x 90% 4266 426624 Activity Based Costing BURDEN INSURANCEThis category represents the insurance for equipment capital only. The insurance for

42、 the building is included in the floorspace allocation.Insurance recovery cost is applied as a percent of capital. As the equipment value increases, so does the amount of insurance expense.FORMULA;(Insurance Percentage) x (Replacement Value of Equipment) Annual HoursAssumption;Capital $500,000, Frei

43、ght & 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 UTILITIESThis category compensates the supplier for the utility consumption

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

45、 etc.Utility 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; Consumers Energy NewsFord Internal Manufacturing facilities26 Act

46、ivity Based Costing BURDEN INDIRECT MATERIALSThis 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 reservoir

47、, but the amount exhausted during the production hour. Indirect material costs are applied to the burden rate, as consumed, in the appropriate units of measure, eg. kilograms, liters, cubic meters, etcRESOURCES; Manufacturers of materialsFord Internal Manufacturing facilities27 Activity Based Costin

48、g BURDEN MAINTENANCE, REPAIR & OTHER (MRO) BURDENMRO Burden for Equipment & ToolingCost applied to these segments are separated between the capital cost of the equipment/tooling and operating supplies.Equipment and ToolingCapital cost of Equipment and ToolingThese costs apply to the Plant Engineerin

49、g and Tool shop equipment necessary to maintain machines and tools. It is the 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. Ope

50、rating Supplies cost of Equipment and ToolingOperating Supplies include spare parts, perishable tooling, safety equipment, gloves, etc.Operating Supplies recovery cost is applied as a percent of investment.28 Activity Based Costing BURDEN MAINTENANCE, REPAIR & OTHER (MRO) BURDENMaintenance Schedules

51、The 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, the required maintenance will be a minor amount, and increase during its expected life. Our rates, however, generate an average amount, constan

52、t over the entire life, thus over compensating during the 1st-half and possibly under compensating on the 2nd-half. RESOURCES;Equipment ManufacturersInternal Ford Manufacturing FacilitiesHistorical Maintenance SchedulesEuropean Industrial HandbookEquipment and Tooling29 Activity Based Costing BURDEN

53、 MAINTENANCE, REPAIR & OTHER (MRO) BURDENMRO Burden for Building Cost & MaintenanceSimilar to tooling and equipment MRO, building expenses are divided into Capital and Operating Supplies segments. GRIMM distinguishes three different building environments; light manufacturing, foundry, and heavy stam

54、ping. These models vary based on the required infrastructure; foundation, overhead cranes, underground conveyor systems, etc., as appropriate. Each machine in the database is assigned to its typical floorspace environment, resulting in the appropriate allocation of funds. 30 Activity Based Costing B

55、URDEN MAINTENANCE, REPAIR & OTHER (MRO) BURDENCapital cost of the BuildingThis segment includes the initial building cost, interest, and insurance.Building cost is applied as a rate per square meter. The manufacturing environment dictates the appropriate floorspace model, and applies the cost per sq

56、uare meter/ per hour. The depreciation period used for building capital is 30 years, in general accordance with IRS guidelines. Similar to equipment depreciation, a straight line depreciation method is employed. Most buildings, however, are not rendered useless after the 30 year period, so a residua

57、l value is applied up front, and subtracted from the initial capital value. Building31 Activity Based Costing BURDEN MAINTENANCE, REPAIR & OTHER (MRO) BURDENOperating supplies cost of the BuildingThese costs include heating energy, electricity for lighting, cleaning and maintenance materials, water

58、service, real estate taxes, and misc. expenses.Operating supplies recovery cost is presented in the burden rate as a cost per square meter / per hour. Building32 Activity Based Costing BURDEN MAINTENANCE, REPAIR & OTHER (MRO) BURDENFloorspace Allocation Formula;Add two meters to each dimension of th

59、e equipment footprint, allowing for safety zones, isles, access between machines, plus an additional 50% increment to account for stock storage, cribs, shipping and receiving, supervisory space, plant front office areas, and other ancillary space.Building33 Activity Based Costing BURDENDepreciation - Straight line methodLifetime of Equipment30 years buildingInterest - (Opportunity Cost)Based on Long-term investment, low risk bondsa