COST PER PIECE DETERMINATION IN MACHINING PROCESS - AN ALTERNATIVE APPROACH

Increased competitive pressure has been brought on by the emergence of a global market. As a result of the global competition there is now a very small margin of error for companies. It is vital that the inform ation they use for decision-making reflects their environment as accur ately as possible. Cost information is one of the most important sourc es for this purpose. This paper suggests an approach for determining c ost per part more precisely. It introduces two types of ''machine tool s contribution factors'' specific to machining processes. The approach was performed under standard cost centre conditions from which result s are presented and discussed. The results indicated that the proposed approach can be more effective than traditional cost per part determi nation. Copyright (C) 1996 Published by Elsevier Science Ltd