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Full-Text Articles in Social and Behavioral Sciences
An Empirical Analysis Of Manufacturing Overhead Cost Drivers, Rajiv D. Banker, Gordon S. Potter, Roger G. Schroeder
An Empirical Analysis Of Manufacturing Overhead Cost Drivers, Rajiv D. Banker, Gordon S. Potter, Roger G. Schroeder
Gordon Potter
Empirical validity of the claim that overhead costs are driven not by production volume but by transactions resulting from production complexity is examined using data from 32 manufacturing plants from the electronics, machinery, and automobile components industries. Transactions are measured using number of engineering change orders, number of purchasing and production planning personnel, shop- floor area per part, and number of quality control and improvement personnel. Results indicate a strong positive relation between manufacturing overhead costs and both manufacturing transactions and production volume. Most of the variation in overhead costs, however, is explained by measures of manufacturing transactions, not volume.
Manufacturing Performance Reporting For Continuous Quality Improvement, Rajiv D. Banker, Gordon S. Potter, Roger G. Schroeder
Manufacturing Performance Reporting For Continuous Quality Improvement, Rajiv D. Banker, Gordon S. Potter, Roger G. Schroeder
Gordon Potter
Recently many plants have implemented the new manufacturing strategy of continuous quality improvement. The central hypothesis in this paper is that the implementation of a policy of continuous quality improvement results in a shift in the management control system. This article tests this hypothesis by examining the shop floor reporting policies of forty-two plants located in the United States. The paper documents that the extent of information concerning the current status of manufacturing, such as charts on defect rates or schedule compliance and productivity information, provided to workers on the shop floor is positively related to the implementation of continuous …