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Production Cost Modeling and Simulation in the Glove Manufacturing Industry

Product costing is an essential aspect of business strategy as it allows companies to forecast a product's future revenues and expenses and make informed decisions about its development and production. One of the main challenges in the manufacturing sector is the diffi...

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Main Authors: N., Agus Salim, M. F. F., Ab Rashid
Format: Article
Language:English
Published: Penerbit UMP 2023
Subjects:
TJ Mechanical engineering and machinery
Online Access:http://umpir.ump.edu.my/id/eprint/38834/1/Production%20Cost%20Modeling%20and%20Simulation%20in%20the%20Glove%20Manufacturing%20Industry.pdf
http://umpir.ump.edu.my/id/eprint/38834/
https://journal.ump.edu.my/jmmst/article/view/9401/2982
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spelling my.ump.umpir.388342023-10-09T05:06:19Z http://umpir.ump.edu.my/id/eprint/38834/ Production Cost Modeling and Simulation in the Glove Manufacturing Industry N., Agus Salim M. F. F., Ab Rashid TJ Mechanical engineering and machinery Product costing is an essential aspect of business strategy as it allows companies to forecast a product's future revenues and expenses and make informed decisions about its development and production. One of the main challenges in the manufacturing sector is the difficulty in selecting the optimal production setup. This can be due to changes in the product or component during the manufacturing process, leading to difficultiesin defining the best production quantity and forecasting production costs. Low productivity is another challenge faced by industrial organizations, which can affect their profitability. A case study was conducted in the glove manufacturing industry. The main objective of this research is to model the production cost for the selected case study. Cost modeling in the manufacturing industry involves creating a representation or simulation of a manufacturing process to estimate the costs associated with producing a product. Developing a cost model for the manufacturing industry involves collecting data from the industry and existing literature; developing a cost model with several function modules based on the data; validating the model by comparing its estimates to actual costs; and using the model for cost estimation, budgeting, and product pricing while keeping it updated and calibrated regularly to ensure its accuracy over time. Based on simulation analysis, productivity was improved by 4.0% compared to the original layout. In addition, the production cost per box was reduced by 4.2%. The results from this research can help companies to manage their resources and improve their profitability more effectively. Penerbit UMP 2023 Article PeerReviewed pdf en cc_by_4 http://umpir.ump.edu.my/id/eprint/38834/1/Production%20Cost%20Modeling%20and%20Simulation%20in%20the%20Glove%20Manufacturing%20Industry.pdf N., Agus Salim and M. F. F., Ab Rashid (2023) Production Cost Modeling and Simulation in the Glove Manufacturing Industry. Journal of Modern Manufacturing Systems and Technology (JMMST), 7 (2). pp. 9-16. ISSN 2636-9575. (Published) https://journal.ump.edu.my/jmmst/article/view/9401/2982 10.15282/jmmst.v7i2.9401
institution Universiti Malaysia Pahang Al-Sultan Abdullah
building UMPSA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Pahang Al-Sultan Abdullah
content_source UMPSA Institutional Repository
url_provider http://umpir.ump.edu.my/
language English
topic TJ Mechanical engineering and machinery
spellingShingle TJ Mechanical engineering and machinery
N., Agus Salim
M. F. F., Ab Rashid
Production Cost Modeling and Simulation in the Glove Manufacturing Industry
description Product costing is an essential aspect of business strategy as it allows companies to forecast a product's future revenues and expenses and make informed decisions about its development and production. One of the main challenges in the manufacturing sector is the difficulty in selecting the optimal production setup. This can be due to changes in the product or component during the manufacturing process, leading to difficultiesin defining the best production quantity and forecasting production costs. Low productivity is another challenge faced by industrial organizations, which can affect their profitability. A case study was conducted in the glove manufacturing industry. The main objective of this research is to model the production cost for the selected case study. Cost modeling in the manufacturing industry involves creating a representation or simulation of a manufacturing process to estimate the costs associated with producing a product. Developing a cost model for the manufacturing industry involves collecting data from the industry and existing literature; developing a cost model with several function modules based on the data; validating the model by comparing its estimates to actual costs; and using the model for cost estimation, budgeting, and product pricing while keeping it updated and calibrated regularly to ensure its accuracy over time. Based on simulation analysis, productivity was improved by 4.0% compared to the original layout. In addition, the production cost per box was reduced by 4.2%. The results from this research can help companies to manage their resources and improve their profitability more effectively.
format Article
author N., Agus Salim
M. F. F., Ab Rashid
author_facet N., Agus Salim
M. F. F., Ab Rashid
author_sort N., Agus Salim
title Production Cost Modeling and Simulation in the Glove Manufacturing Industry
title_short Production Cost Modeling and Simulation in the Glove Manufacturing Industry
title_full Production Cost Modeling and Simulation in the Glove Manufacturing Industry
title_fullStr Production Cost Modeling and Simulation in the Glove Manufacturing Industry
title_full_unstemmed Production Cost Modeling and Simulation in the Glove Manufacturing Industry
title_sort production cost modeling and simulation in the glove manufacturing industry
publisher Penerbit UMP
publishDate 2023
url http://umpir.ump.edu.my/id/eprint/38834/1/Production%20Cost%20Modeling%20and%20Simulation%20in%20the%20Glove%20Manufacturing%20Industry.pdf
http://umpir.ump.edu.my/id/eprint/38834/
https://journal.ump.edu.my/jmmst/article/view/9401/2982
_version_ 1822923761037344768
score 13.239859

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