07. Knowledge and Information Management
Activity-based cost models, although they originally appeared as a solution to allocate indirect production costs to products, have today a much broader application and the potential to provide more complete and accurate information for decision making. In this regard, extended ABC models have been suggested in recent years as a way to assist specific decision making and improve the overall efficiency of production costs, intertwining concepts of technical and managerial optimization with cost optimization. This paper uses the theoretical roots of Time-Driven Activity-Based Costing and contributions from previous mathematical cost models, to assist Kaizen and continuous improvement projects. In order to demonstrate the applicability of the proposed model, an example is explored to demonstrate how the proposed cost model can be used for optimization purposes. The case study is related to changing chemical reactors in a production line. The proposed cost model can be developed suggested as a weighting between continuous improvements and general process / production optimizations in order to refine its performance in ensuring to the changes in production activities the minimum of technical externalities and accurate forecast of production costs in decision-making processes.
PALAVRAS-CHAVE: kaizen, time-driven activity-based costing, costing systems