INTEGRATION OF MAHALANOBIS-TAGUCHI SYSTEM AND ACTIVITY BASED COSTING IN DECISION MAKING FOR REMANUFACTURING

Transcription

1 INTEGRATION OF MAHALANOBISTAGUCHI SYSTEM AND ACTIVITY BASED COSTING IN DECISION MAKING FOR REMANUFACTURING MOHD YAZID BIN ABU UNIVERSITI TEKNOLOGI MALAYSIA

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4 BAHAGIAN A Pengesahan Kerjasama* Adalah disahkan bahawa projek penyelidikan tesis ini telah dilaksanakan melalui kerjasama antara dengan Disahkan oleh: Tandatangan : Nama : Jawatan (Cop rasmi) : Tarikh : * Jika penyediaan tesis/projek melibatkan kerjasama. BAHAGIAN B Untuk Kegunaan Pejabat Sekolah Pengajian Siswazah Tesis ini telah diperiksa dan diakui oleh: Nama dan Alamat Pemeriksa Luar : Prof. Dr. Shamsuddin bin Sulaiman Dept of Mechanical and Manufacturing Engineering Faculty of Engineering Universiti Putra Malaysia Serdang Selangor Nama dan Alamat Pemeriksa Dalam : Prof. Madya Dr. Izman bin Sudin Fakulti Kejuruteraan Mekanikal UTM Johor Bahru Disahkan oleh Timbalan Pendaftar di Sekolah Pengajian Siswazah: Tandatangan : Nama : Tarikh : ASRAM BIN SAIM

5 INTEGRATION OF MAHALANOBISTAGUCHI SYSTEM AND ACTIVITY BASED COSTING IN DECISION MAKING FOR REMANUFACTURING MOHD YAZID BIN ABU A thesis submitted in fulfilment of the requirements for the award of the degree of Doctor of Philosophy (Mechanical Engineering) Faculty of Mechanical Engineering Universiti Teknologi Malaysia JANUARY 2016

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7 vii TABLE OF CONTENTS CHAPTER TITLE DECLARATION ii DEDICATION iii ACKNOWLEDGEMENT iv ABSTRACT v ABSTRAK vi TABLE OF CONTENTS vii LIST OF TABLES xi LIST OF FIGURES xiv LIST OF ABBREVIATIONS LIST OF APPENDICES 1 2 PAGE xviii xx INTRODUCTION Background of the Research Problem Statement Research Objectives Research Scopes Significance of Research Organization of Thesis 6 LITERATURE REVIEW Introduction History of Remanufacturing Definitions of Remanufacturing Differences between Recycling, Repairing, Reconditioning and remanufacturing Process of Remanufacturing Advantages of Remanufacturing 12

8 viii 2.4 Factors Driving Remanufacturing Application of Remanufacturing Issues in Remanufacturing MahalanobisTaguchi System (MTS) Concept of MTS Advantages and Limitations of MTS Comparison MTS with other Methods Comparison of MTS with Artificial Neural Network (ANN) Comparison of MTS with Multivariate Control Chart Comparison of MTS with Multiple Regression Issues in MTS Activity based Costing (ABC) Concept of ABC Advantages and Limitations of ABC Comparison between ABC and TCA Research Gap of ABC Summary 37 RESEARCH METHODOLOGY Introduction Phase 1: Problem Definition Phase 2: Data Collection Endorsement Remanufacturing Company Selection Automotive Component Parameters Selection Data Collection 43 Phase 3: Data Analysis Crankshaft Classification using T Method Parameter Evaluation using T Method Volumebased using Activitybased Costing Phase 4: Interpretation and Conclusion Summary 55

9 ix RESULTS AND DISCUSSION: PATTERN RECOGNITION Introduction Classification EOL Crankshaft into Recovery Operation Caterpillar Engine Detroit Engine Hatz Engine Man Engine Mtu183 Engine Perkins Engine Combination of Scatter Diagrams Prediction the Condition by Unknown Data Summary 68 RESULTS AND DISCUSSION: PARAMETER EVALUATION Introduction Parameter Evaluation using T Method Caterpillar Engine Detroit Engine Hatz Engine Man Engine Mtu183 Engine Perkins Engine Finding Summary 102 RESULT AND DISCUSSION: ACTIVITYBASED COSTING Introduction Identification of Centres with their Activities Assigning Resource Cost to Activity Centres Assigning Centre Cost to Activities Estimate the Cost per Unit of Activity Driver Preparing a Bill of Activities for each Engine Model Findings Summary 137

10 x 7 8 MAJOR CONTRIBUTION: DECISION MAKING Introduction Cost Comparison among Method Combinations Significant Contribution of MTS to the Final Cost Undercharged and Overcharged Significant Contribution of ABC System to the Final Cost Comparison the Selling Price of Current and Proposed Method Application of Softwarebased Excel Summary 167 CONCLUSIONS AND RECOMMENDATIONS Introduction Research Contributions Practical Contributions 8.3 Fulfillment of Research Objectives Limitations of the Research Recommendations for Future Research 171 REFERENCES Appendices A D

11 xi LIST OF TABLES TABLE NO. TITLE PAGE 2.1 Classification of issues in remanufacturing Comparison MTS with other methods Comparisons between MTS and ANN method (Teshima et al., 2012) 2.4 Comparisons between MTS and multivariate control chart (Teshima et al., 2012) Comparisons between MTS and multiple regression analysis (Teshima et al., 2012) Classification of issues in MTS Specific papers under selected categories ABC issues by various researchers Quantity of components received from 2009 to Available number of main journal and crankpin of crankshaft Data collection for crankpin of crankshaft Average values and linear equations of unit data Sensitivity β and standard SN ratio ƞ for each in the unit data Linear equations of signal data Input and output of unit data Signal data Normalized signal data Proportional coefficient and SN ratio item by item Measured values and integrated estimated values of signal data Orthogonal array L8 and assignment of items Threshold generated for rejected, hybrid and remanufacturable of engine models L8 of orthogonal array for Caterpillar Integrated estimate SN ratio η by level of Caterpillar 73

12 xii 5.3 L8 of orthogonal array for Detroit Integrated estimate SN ratio η by level of Detroit L8 of orthogonal array for Hatz Integrated estimate SN ratio η by level of Hatz L8 of orthogonal array for Man Integrated estimate SN ratio η by level of Man L8 of orthogonal array for MTU Integrated estimate SN ratio η by level of MTU L8 of orthogonal array for Perkins Integrated estimate SN ratio η by level of Perkins Improvement on inspection Centres with their activities Assigning resources cost to centres Assigning administration centre cost to activities Assigning corporate management centre costs to activities Assigning factory management centre cost to activities Assigning quality control centre cost to activities Calibration on inspection tools Assigning remanufacturing centre cost to activities Maintenance duration on grinding machine Maintenance duration on polishing machine Maintenance duration on cleaning machine Assigning sales and dispatch centre cost to activities Activities and activity cost per unit of activity drivers Activitybased product cost (Caterpillar) Activitybased product cost (Detroit) Activitybased product cost (Hatz) Activitybased product cost (Man) Activitybased product cost (Mtu183) Activitybased product cost (Perkins) Complexity influencing the cost Cost by conventional system from traditional inspection (Caterpillar) Cost by conventional system from traditional inspection (Detroit) Cost by conventional system from traditional inspection (Hatz) Cost by conventional system from traditional inspection (Man) Cost by conventional system from traditional inspection (Mtu183) Cost by conventional system from traditional inspection (Perkins) 142

13 xiii 7.7 Cost by ABC system from traditional inspection (Caterpillar) Cost by ABC system from traditional inspection (Detroit) Cost by ABC system from traditional inspection (Hatz) Cost by ABC system from traditional inspection (Man) Cost by ABC system from traditional inspection (Mtu183) Cost by ABC system from traditional inspection (Perkins) Cost by conventional system from MTS (Caterpillar) Cost by conventional system from MTS (Detroit) Cost by conventional system from MTS (Hatz) Cost by conventional system from MTS (Man) Cost by conventional system from MTS (Mtu183) Cost by conventional system from MTS (Perkins) Cost per unit comparison among engine models Overcharged and undercharged (Type A and B) Overcharged and undercharged (Type C and D) Selling price among engine models Comparison selling price of Type A and Type D 155

14 xiv LIST OF FIGURES FIGURE NO. TITLE PAGE 1.1 Current remanufacturing process Product recovery processes with warranty (Ijomah, 2002) Different product recovery operations (King and Gu, 2010) The remanufacturing process of diesel engine (Cai et al., 2010) Prime cost of new versus remanufacturing engine (Johannes, 1995) Remanufacturing and reuse value by sector (Chapman et al., 2010) Classification of issues in remanufacturing Correlation between the two characteristic values (InJin and GyungJin, 2011) Plot of normalized data (Itagaki et al., 2007) Procedure of the MTS technique (InJin and GyungJin, 2011) Classification of issues in MTS Twostage costing (Cooper, 1990) The schematic of overhead apportionment (Tsai, 1996) Another schematic of overhead apportionment (Tsai et al., 2012) TCA versus ABC (Hong and Gong Lin, 2012) Research flowchart Main journal and crankpin of crankshaft Scatter diagram of Caterpillar engine model Scatter diagram of Detroit engine model Scatter diagram of Hatz engine model Scatter diagram of Man engine model Scatter diagram of Mtu183 engine model Scatter diagram of Perkins engine model Relationship between tolerance and MD Relationship between remanufacturable tolerance and MD for a) Caterpillar, b) Detroit, c) Hatz, d) Man, e) Mtu183 and

15 xv f) Perkins Relationship between rejected tolerance and MD for a) Caterpillar, b) Detroit, c) Hatz, d) Mtu183 and e) Perkins Crankshaft classifications with all engine models Thresholds of a) Caterpillar, b) Detroit, c) Hatz, d) Man, e) Mtu183 and f) Perkins Prediction the condition by unknown data Histogram of Caterpillar T Method1 confirmation of Caterpillar Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and f) Diameter Distribution of actual and estimated values of signal data (Caterpillar) Evaluation importance through a) Factorial effect and b) Degree of contribution of Caterpillar Histogram of Detroit T Method1 confirmation of Detroit Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and f) Diameter Distribution of actual and estimated values of signal data (Detroit) Evaluation importance through a) Factorial effect and b) Degree of contribution of Detroit Histogram of Hatz T Method1 confirmation of Hatz Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and f) Diameter Distribution of actual and estimated values of signal data (Hatz) Evaluation importance through a) Factorial effect and b) Degree of contribution of Hatz Histogram of Man T Method1 confirmation of Man Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and 5.19 f) Diameter Distribution of actual and estimated values of signal data (Man). 87

16 xvi 5.20 Evaluation importance through a) Factorial effect and b) Degree of contribution of Man Histogram of Mtu T Method1 confirmation of Mtu Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and f) Diameter Distribution of actual and estimated values of signal data (Mtu183) Evaluation importance through a) Factorial effect and b) Degree of contribution of Mtu Histogram of Perkins T Method1 confirmation of Perkins Scatter of output MD and crankpin of a) Diameter 1, b) Diameter 2, c) Diameter 3, d) Diameter 4, e) Diameter 5 and f) Diameter Distribution of actual and estimated values of signal data (Perkins) Evaluation importance through a) Factorial effect and b) Degree of contribution of Perkins Histogram and scatter diagram of a) 8 unit data, b) 9 unit data and c) 12 unit data Quantity effect on a) Proportional coefficient β and b) SN ratio η Complexity influencing the cost Combinations of method Decision making situations under conventional and ABC system Ranking of engine model Interface with important aspects Interface of pattern recognition Data from user need to be analyzed Result of MD value of a) unit data and b) signal data Scatter diagram of a) single and b) combination Interface of parameter evaluation Data from user need to be analyzed Output of (a) setting of US, (b) computation process and (c) general estimation Allocation of overhead, each department and overhead categories Allocation of percentage for each activity based on particular department with their percentage of overhead types 163

17 xvii 7.14 Generating cost per unit of activity driver Generating cost per unit of crankshaft Decision either to reject or remanufacture Comparing graphs of ABC system and TCA Flow chart using softwarebased excel 166

18 xviii LIST OF ABBREVIATIONS ABC Activity based costing ANN Artificial neural network ARPA Automotive parts rebuilders association BPN Back propagation neural network CM Cellular manufacturing COQ Cost of quality DT Decision tree ED Euclidian distance EOL End of life EOUP End of use product FMIS Farm management information system FMS Flexible manufacturing system FSC Finite state classifier GHG Greenhouse gases IMQC International management of quality control JPJ Jabatan Pengangkutan Jalan LCC Low cost country LR Logistic regression LVQ Learning vector quantization MD Mahalanobis distance MTI Motor Teknologi Industri MTS Mahalanobis Taguchi system NN Neural network OA Orthogonal array OEM Original equipment manufacturer PAC Preoperative assessment center PFABC Performance focused activity based costing PFM Principal feature measure

19 xix RLCS Rote learning classifier system SD Signal data SME Small and medium enterprise SVM Support vector machine TCA Traditional costing system TDABC Time driven activity based costing TPM Traditional procurement market TRI The remanufacturing institute UD Unit data VCRAM Commercial rebuild vehicle association of Malaysia VTE Venous thromboembolism

20 xx LIST OF APPENDICES APPENDIX A TITLE Analysis of results the pattern recognition on crankpin diameter B PAGE 195 Analysis of results the important parameters on crankpin diameter 221 C Coding of excelbased programming 238 D Disseminations of knowledge through publications 265