A framework of integration degree of contribution and cost driver : a case study in thermal printer /
Nor Suhadah Razali,
A framework of integration degree of contribution and cost driver : a case study in thermal printer / Nor Suhadah Razali - xvi, 226 pages : illustration ; 30 cm.+ 1 CD-ROM
Faculty of Manufacturing and Mechatronic Engineering Technology
Thesis (Master of Science) -- Universiti Malaysia Pahang Al Sultan Abdullah - 2026
Include bibliographical reference
Improving capacity utilization can improve production efficiency by minimizing unused time, maximizing equipment usage, and reducing production activities to more effectively meet demand. Achieving production efficiency often relies on system integration, defined as the process of customizing or combining new and pre-existing systems to enhance productivity and operational quality. The daily and weekly production reports including information such as working time, output, downtime, takt time, production efficiency and machine utilization. However, there is no information related to the parameters contributed to the production activities and the company recorded 6361 rejected units of the SII thermal printer model in 2023. Meanwhile, industry professionals use activity-based costing (ABC) to calculate the cost per unit of finished products in order to address production expenses. Obviously, the current method presents challenges in accurately determining capacity utilization and unused capacity. Unfortunately, the costing and quality tools frequently operate separately, making it harder to understand how factors affect industrial capacity. This research aims to formulate a new framework by integrates the degree of contribution and cost driver in production environment. MTS uses multivariate data for quantitative decision-making in order to diagnose and predict system performance. Time-driven activity-based costing (TDABC) is utilized as a costing model, enabling companies to allocate costs by calculating the time spent on activities. Data collection is conducted at electronic company in Pasir Gudang, Johor. The product under study is a thermal printer model SII which involved with 25 workstations, 51 parameters, and 59 activities. The framework is validated through different products complexity. As a result, in April 2023, the average Mahalanobis distance (MD) of the abnormal sample is 53.401398, whereas the average MD of the normal sample is 1.000001. Increasing the number of parameters which are exceed the normal range will increase the MD value. There are 34% parameters have a positive degree of contribution (impact increasing MD value), whereas 66% parameters have a negative degree of contribution (impact decreasing MD value). For the main activity of printing inspection, sub-activity of prepare printing inspection equipment has a unused capacity of time and cost of -379.29 hours and MYR -4,323.95 respectively. It was found that there are three types of unused capacity have been identified such as Type I refers to a workstation that overutilizes resources and apportionment costs by 4 workstations and this is undesirable to be practised, Type II refer to a workstation is small-utilized the resources and cost of apportionment by 13 workstation and it also undesirable to be practised, and Type III refer to a workstation is largely-utilized the resources and apportionment costs by 8 workstations and it is desirable to be practised. The most effective model to reduce the rejection rate is model 4. It was found that the negative degree of contribution of higher level is reduces the magnitude by two points, the negative degree of contribution of lower level is reduced the magnitude by one point, and the magnitude for positive degree of contribution is kept unchanged. Improved utilization of unused capacity in terms of time and cost contributes to reduced unit rejection. The integration of degree of contribution and cost driver in a production environment improves decision-making by aligning resource allocation with profitability for improving cost efficiency and overall performance.
THE0009502 (Local)
Faculty of Manufacturing and Mechatronic Engineering Technology--Dissertations
Universities and colleges--Dissertations
Theses--Dissertations
A framework of integration degree of contribution and cost driver : a case study in thermal printer / Nor Suhadah Razali - xvi, 226 pages : illustration ; 30 cm.+ 1 CD-ROM
Faculty of Manufacturing and Mechatronic Engineering Technology
Thesis (Master of Science) -- Universiti Malaysia Pahang Al Sultan Abdullah - 2026
Include bibliographical reference
Improving capacity utilization can improve production efficiency by minimizing unused time, maximizing equipment usage, and reducing production activities to more effectively meet demand. Achieving production efficiency often relies on system integration, defined as the process of customizing or combining new and pre-existing systems to enhance productivity and operational quality. The daily and weekly production reports including information such as working time, output, downtime, takt time, production efficiency and machine utilization. However, there is no information related to the parameters contributed to the production activities and the company recorded 6361 rejected units of the SII thermal printer model in 2023. Meanwhile, industry professionals use activity-based costing (ABC) to calculate the cost per unit of finished products in order to address production expenses. Obviously, the current method presents challenges in accurately determining capacity utilization and unused capacity. Unfortunately, the costing and quality tools frequently operate separately, making it harder to understand how factors affect industrial capacity. This research aims to formulate a new framework by integrates the degree of contribution and cost driver in production environment. MTS uses multivariate data for quantitative decision-making in order to diagnose and predict system performance. Time-driven activity-based costing (TDABC) is utilized as a costing model, enabling companies to allocate costs by calculating the time spent on activities. Data collection is conducted at electronic company in Pasir Gudang, Johor. The product under study is a thermal printer model SII which involved with 25 workstations, 51 parameters, and 59 activities. The framework is validated through different products complexity. As a result, in April 2023, the average Mahalanobis distance (MD) of the abnormal sample is 53.401398, whereas the average MD of the normal sample is 1.000001. Increasing the number of parameters which are exceed the normal range will increase the MD value. There are 34% parameters have a positive degree of contribution (impact increasing MD value), whereas 66% parameters have a negative degree of contribution (impact decreasing MD value). For the main activity of printing inspection, sub-activity of prepare printing inspection equipment has a unused capacity of time and cost of -379.29 hours and MYR -4,323.95 respectively. It was found that there are three types of unused capacity have been identified such as Type I refers to a workstation that overutilizes resources and apportionment costs by 4 workstations and this is undesirable to be practised, Type II refer to a workstation is small-utilized the resources and cost of apportionment by 13 workstation and it also undesirable to be practised, and Type III refer to a workstation is largely-utilized the resources and apportionment costs by 8 workstations and it is desirable to be practised. The most effective model to reduce the rejection rate is model 4. It was found that the negative degree of contribution of higher level is reduces the magnitude by two points, the negative degree of contribution of lower level is reduced the magnitude by one point, and the magnitude for positive degree of contribution is kept unchanged. Improved utilization of unused capacity in terms of time and cost contributes to reduced unit rejection. The integration of degree of contribution and cost driver in a production environment improves decision-making by aligning resource allocation with profitability for improving cost efficiency and overall performance.
THE0009502 (Local)
Faculty of Manufacturing and Mechatronic Engineering Technology--Dissertations
Universities and colleges--Dissertations
Theses--Dissertations