Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing

Classifying components at the end of life (EOL) into remanufacture, repair or dispose is still a major concern to automotive industries. Prior to this study, no specific approach is reported as a guide line to determine critical crankpins that justifying economical remanufacturing process. Tradition...

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Main Author:	Mohd Yazid, Abu
Format:	Thesis
Language:	English
Published:	2016
Subjects:	TJ Mechanical engineering and machinery TS Manufactures
Online Access:	http://umpir.ump.edu.my/id/eprint/16388/19/Integration%20of%20mahalanobis-taguchi%20system%20and%20activity%20based%20costing%20in%20decision%20making%20for%20remanufacturing.pdf
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spelling	my-ump-ir.163882021-12-07T08:21:29Z Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing 2016-01 Mohd Yazid, Abu TJ Mechanical engineering and machinery TS Manufactures Classifying components at the end of life (EOL) into remanufacture, repair or dispose is still a major concern to automotive industries. Prior to this study, no specific approach is reported as a guide line to determine critical crankpins that justifying economical remanufacturing process. Traditional cost accounting (TCA) has been used widely by remanufacturing industries but this is not a good measure of estimating the actual manufacturing costs per unit as compared to activity based costing (ABC). However, the application of ABC method in estimating remanufactured cost is rarely reported. These issues were handled separately without a proper integration to make remanufacturing decision which frequently results into uneconomical operating cost and finally the decision becomes less accurate. The aim of this work is to develop a suitable pattern recognition method for classifying crankshaft into three different EOL groups and subsequently evaluates the critical and non-critical crankpins of the used crankshaft using Mahalanobis-Taguchi System (MTS). A remanufacturability assessment technique was developed using Microsoft Excel spreadsheet on pattern recognition and critical crankpins evaluation, and finally integrates these information into a similar spreadsheet with ABC to make decision whether the crankshaft is to be remanufactured, repaired or disposed. The developed scatter diagram was able to recognize group pattern of EOL crankshaft which later was successfully used to determine critical crankpins required for remanufacturing process. The proposed method can serve as a useful approach to the remanufacturing industries for systematically evaluate and decide EOL components for further processing. Case study on six engine models, the result shows that three engines can be securely remanufactured at above 40% profit margin while another two engines are still viable to remanufacture but with less profit margin. In contrast, only two engines can be securely remanufactured due overcharge when using TCA. This inaccuracy affects significantly the overall remanufacturing activities and revenue of the industry. In conclusion, the proposed integration on pattern recognition, parameter evaluation and costing assists the decision making process to effectively remanufacture EOL automotive components as confirmed by Head of workshop of Motor Teknologi Industri Sdn. Bhd. 2016-01 Thesis http://umpir.ump.edu.my/id/eprint/16388/ http://umpir.ump.edu.my/id/eprint/16388/19/Integration%20of%20mahalanobis-taguchi%20system%20and%20activity%20based%20costing%20in%20decision%20making%20for%20remanufacturing.pdf pdf en public phd doctoral Universiti Teknologi Malaysia Faculty of Mechanical Engineering
institution	Universiti Malaysia Pahang Al-Sultan Abdullah
collection	UMPSA Institutional Repository
language	English
topic	TJ Mechanical engineering and machinery TS Manufactures
spellingShingle	TJ Mechanical engineering and machinery TS Manufactures Mohd Yazid, Abu Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
description	Classifying components at the end of life (EOL) into remanufacture, repair or dispose is still a major concern to automotive industries. Prior to this study, no specific approach is reported as a guide line to determine critical crankpins that justifying economical remanufacturing process. Traditional cost accounting (TCA) has been used widely by remanufacturing industries but this is not a good measure of estimating the actual manufacturing costs per unit as compared to activity based costing (ABC). However, the application of ABC method in estimating remanufactured cost is rarely reported. These issues were handled separately without a proper integration to make remanufacturing decision which frequently results into uneconomical operating cost and finally the decision becomes less accurate. The aim of this work is to develop a suitable pattern recognition method for classifying crankshaft into three different EOL groups and subsequently evaluates the critical and non-critical crankpins of the used crankshaft using Mahalanobis-Taguchi System (MTS). A remanufacturability assessment technique was developed using Microsoft Excel spreadsheet on pattern recognition and critical crankpins evaluation, and finally integrates these information into a similar spreadsheet with ABC to make decision whether the crankshaft is to be remanufactured, repaired or disposed. The developed scatter diagram was able to recognize group pattern of EOL crankshaft which later was successfully used to determine critical crankpins required for remanufacturing process. The proposed method can serve as a useful approach to the remanufacturing industries for systematically evaluate and decide EOL components for further processing. Case study on six engine models, the result shows that three engines can be securely remanufactured at above 40% profit margin while another two engines are still viable to remanufacture but with less profit margin. In contrast, only two engines can be securely remanufactured due overcharge when using TCA. This inaccuracy affects significantly the overall remanufacturing activities and revenue of the industry. In conclusion, the proposed integration on pattern recognition, parameter evaluation and costing assists the decision making process to effectively remanufacture EOL automotive components as confirmed by Head of workshop of Motor Teknologi Industri Sdn. Bhd.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Mohd Yazid, Abu
author_facet	Mohd Yazid, Abu
author_sort	Mohd Yazid, Abu
title	Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
title_short	Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
title_full	Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
title_fullStr	Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
title_full_unstemmed	Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
title_sort	integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing
granting_institution	Universiti Teknologi Malaysia
granting_department	Faculty of Mechanical Engineering
publishDate	2016
url	http://umpir.ump.edu.my/id/eprint/16388/19/Integration%20of%20mahalanobis-taguchi%20system%20and%20activity%20based%20costing%20in%20decision%20making%20for%20remanufacturing.pdf
_version_	1783732011269095424

Integration of mahalanobis-taguchi system and activity based costing in decision making for remanufacturing

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