Bottom up cost estimation model for project management in semiconductor industry

Cost estimation is a process of estimating and forecasting the total cost required of executing the engineering activities from project initiation till project completion. In semiconductor manufacturing industry, project managers encountered several obstacles with regards to cost estimation. There a...

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Main Author:	Cheah, Chin Puay
Format:	Thesis
Language:	English English
Published:	2016
Subjects:	T Technology (General)
Online Access:	http://eprints.utem.edu.my/id/eprint/20451/2/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf http://eprints.utem.edu.my/id/eprint/20451/3/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf
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id	my-utem-ep.20451
record_format	uketd_dc
spelling	my-utem-ep.204512022-10-07T08:52:21Z Bottom up cost estimation model for project management in semiconductor industry 2016 Cheah, Chin Puay T Technology (General) Cost estimation is a process of estimating and forecasting the total cost required of executing the engineering activities from project initiation till project completion. In semiconductor manufacturing industry, project managers encountered several obstacles with regards to cost estimation. There are no proper guidance, no standardization and no project budget breakdown overview on the cost estimation. Consequently, these have incurred no consistency in project cost estimation among project managers, poor cost management and mitigation plan shown by project managers with regards to high percentage difference between the actual and estimate (plan) which is more than 20 percent. Hence, there is a need to develop a systematic framework or a proposed approach for cost estimation in order to help and support the project managers which handling the package assembly project in INN Company, Malacca. This research proposes a methodology that uses bottom up approach via Activity Based Costing (ABC) to estimate a project cost with five key cost elements using Excel-based cost estimator. The package assembly projects that are being discussed and analyzed are projects complexity of I, 2 and 3. The cost model is validated with the historical data while the testing data are validated with the actual data. Mean absolute percentage error (MAPE) is calculated to measure the forecast accuracy. With the full implementation of the established cost model, it helps the company to achieve 7 percent of MAPE in 2015 as compared to 13 percent (2014) and 16 percent (2013). The outcome of the cost model is satisfactory as the MAPE of 7% is obtained as compared to an industrial target of 10%. It is recommended that thorough studies and analysis could be studied to understand greater details of cost element. Web Portal is the recommended tool for the cost estimation in future as it is a collection of web pages that support multiple web browsers. 2016 Thesis http://eprints.utem.edu.my/id/eprint/20451/ http://eprints.utem.edu.my/id/eprint/20451/2/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf text en public http://eprints.utem.edu.my/id/eprint/20451/3/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf text en validuser https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=104943 mphil masters Universiti Teknikal Malaysia Melaka Faculty Of Manufacturing Engineering Chong, Kuan Eng
institution	Universiti Teknikal Malaysia Melaka
collection	UTeM Repository
language	English English
advisor	Chong, Kuan Eng
topic	T Technology (General)
spellingShingle	T Technology (General) Cheah, Chin Puay Bottom up cost estimation model for project management in semiconductor industry
description	Cost estimation is a process of estimating and forecasting the total cost required of executing the engineering activities from project initiation till project completion. In semiconductor manufacturing industry, project managers encountered several obstacles with regards to cost estimation. There are no proper guidance, no standardization and no project budget breakdown overview on the cost estimation. Consequently, these have incurred no consistency in project cost estimation among project managers, poor cost management and mitigation plan shown by project managers with regards to high percentage difference between the actual and estimate (plan) which is more than 20 percent. Hence, there is a need to develop a systematic framework or a proposed approach for cost estimation in order to help and support the project managers which handling the package assembly project in INN Company, Malacca. This research proposes a methodology that uses bottom up approach via Activity Based Costing (ABC) to estimate a project cost with five key cost elements using Excel-based cost estimator. The package assembly projects that are being discussed and analyzed are projects complexity of I, 2 and 3. The cost model is validated with the historical data while the testing data are validated with the actual data. Mean absolute percentage error (MAPE) is calculated to measure the forecast accuracy. With the full implementation of the established cost model, it helps the company to achieve 7 percent of MAPE in 2015 as compared to 13 percent (2014) and 16 percent (2013). The outcome of the cost model is satisfactory as the MAPE of 7% is obtained as compared to an industrial target of 10%. It is recommended that thorough studies and analysis could be studied to understand greater details of cost element. Web Portal is the recommended tool for the cost estimation in future as it is a collection of web pages that support multiple web browsers.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Cheah, Chin Puay
author_facet	Cheah, Chin Puay
author_sort	Cheah, Chin Puay
title	Bottom up cost estimation model for project management in semiconductor industry
title_short	Bottom up cost estimation model for project management in semiconductor industry
title_full	Bottom up cost estimation model for project management in semiconductor industry
title_fullStr	Bottom up cost estimation model for project management in semiconductor industry
title_full_unstemmed	Bottom up cost estimation model for project management in semiconductor industry
title_sort	bottom up cost estimation model for project management in semiconductor industry
granting_institution	Universiti Teknikal Malaysia Melaka
granting_department	Faculty Of Manufacturing Engineering
publishDate	2016
url	http://eprints.utem.edu.my/id/eprint/20451/2/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf http://eprints.utem.edu.my/id/eprint/20451/3/Bottom%20up%20cost%20estimation%20model%20for%20project%20management%20in%20semiconductor%20industry.pdf
_version_	1776103103084363776

Bottom up cost estimation model for project management in semiconductor industry

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