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Proceedings of the International Conference on Industrial Engineering and Operations Management
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Publisher: IEOM Society International, USA |
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Activity-Based Cost Analysis Through WITNESS 27 Discrete Event Simulation Modeling
Tomasz Kantoch
Production Systems and Digitalization
ZF Life-Tec Germany GmbH
Alfdorf, Germany
Tomasz.Kantoch@zf-lifetec.com
Neil G. Murray Jr.
A. Leon Linton Department of Mechanical, Robotics and Industrial Engineering
Lawrence Technological University
Southfield, MI 48075, USA
Passive Safety Electronics Senior Technical Specialist
ZF Corporation
Farmington Hills, MI 48331, USA
Abstract
The challenge for integration of simulation modeling and manufacturing financial cost analysis has been that while there are accounting standards and commonly accepted practices for the capture of direct labor and materials costs, application of other costs, often generally classified as overhead, are applied to products from a top-down perspective. Inaccurate apportioning to particular end-items and more specifically to individual parts may take place. This analysis explores the allocation of both direct factory costs and overhead costs in simulation modeling according to the Kaplan-Cooper model for frequency stratification and Time Activity-Based Cost modeling.
Keywords
Discrete Event Simulation, Activity-Based Cost Analysis, Factory Cost, Overhead Costs, WITNESS Horizon
Acknowledgements
We owe thanks to our families for their patience and good humor during the creation of this analysis.
Biographies
Tomasz Kantoch is an Operations Digitalization & Industry 4.0 Specialist at ZF Passive Safety Systems, Alfdorf, Germany. He earned B.S. in Operation of Motor Vehicles and M.S. in Technology and Management in road transport at the Silesian University of Technology, Gliwice, Poland.
Neil Gordon Murray Jr. is an Adjunct Professor in the A. Leon Linton Department of Mechanical, Robotics and Industrial Engineering at Lawrence Technological University, Michigan, USA. He is also a Senior Technical Specialist with ZF Corporation in Passive Safety Electronics. He earned B.S. in Mechanical Engineering Technology from Saginaw Valley State University, Saginaw, Michigan, Masters in Manufacturing Systems Engineering from University of St. Thomas, St. Paul, Minnesota and Engineering Doctorate in Manufacturing Systems Engineering, (DEMS) from Lawrence Technological University, Southfield, Michigan. He is a certified Six Sigma Master Black Belt with specialization in Design for Six Sigma. In addition to several published journal papers, he is also the author of Witness Horizon 27 Simulation Modeling, Rational Process Design. His research interests include theory of invention, creative problem solving, simulation modeling, digital twinning, Edge Computing and Lean Manufacturing. He is a member of IEOM, SPE and IEEE.