Operations Research, Systems Engineering and Industrial Engineering Commons^™

An Integrated Approach To Simulation And Activity-Based Costing For Evaluating Alternative Manufacturing Cell Designs, Robert Williams, Paul Savory, Rodney Rasmussen

Department of Industrial and Management Systems Engineering: Faculty Publications

One effective technique for improving manufacturing efficiency involves the application of group technology part families and manufacturing cells. Selection of the best or optimum configuration of the manufacturing cell relies on the experience and judgment of the cell designer. This paper describes how activity-based costing (ABC) concepts can be integrated into a discrete-event simulation model and be used to evaluate manufacturing cell configurations. The output of the combined ABC simulation model provides a detailed “Bill of Activity” which allows the cell designer to consider costs as a critical factor in the cell design problem. Alternative cell configurations studied in this …