Study of activity based costing implementation for palm oil production using value-added and non-value-added activity consideration in PT XYZ palm oil mill

TALENTA - Conference on Engineering, Science and Technology 2017

工业技术;自然科学

Sembiring, M.T.^1,2 ; Wahyuni, D.^1 ; Sinaga, T.S.^1 ; Silaban, A.^1

Department of Industrial Engineering, University of North Sumatera, Faculty of Engineering, North Sumatera Province, Indonesia^1

Sustainable Energy and Biomaterial Center of Excellence, Universitas Sumatera Utara, Padang Bulan, Medan

20155, Indonesia^2

关键词: Activity based costing;    Activity-based costing methods;    Cost allocation;    Manufacturing industries;    Non-value added;    Oil production;    Processing time;    Production cost;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/309/1/012059/pdf
DOI  :  10.1088/1757-899X/309/1/012059

来源: IOP

【 摘 要 】

Cost allocation at manufacturing industry particularly in Palm Oil Mill still widely practiced based on estimation. It leads to cost distortion. Besides, processing time determined by company is not in accordance with actual processing time in work station. Hence, the purpose of this study is to eliminates non-value-Added activities therefore processing time could be shortened and production cost could be reduced. Activity Based Costing Method is used in this research to calculate production cost with Value Added and Non-Value-Added Activities consideration. The result of this study is processing time decreasing for 35.75% at Weighting Bridge Station, 29.77% at Sorting Station, 5.05% at Loading Ramp Station, and 0.79% at Sterilizer Station. Cost of Manufactured for Crude Palm Oil are IDR 5.236,81/kg calculated by Traditional Method, IDR 4.583,37/kg calculated by Activity Based Costing Method before implementation of Activity Improvement and IDR 4.581,71/kg after implementation of Activity Improvement Meanwhile Cost of Manufactured for Palm Kernel are IDR 2.159,50/kg calculated by Traditional Method, IDR 4.584,63/kg calculated by Activity Based Costing Method before implementation of Activity Improvement and IDR 4.582,97/kg after implementation of Activity Improvement.