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Traditional costing systems suffer from a number of problems because of the way in which they allocate overheads: product costs have arbitrary components; managers lack information about what causes costs to be incurred; and it becomes impossible to know which of several product lines is the most profitable. Describes a case study in which activity‐based costing and process mapping were applied in combination in an engineering firm, where it was found that it was necessary to specify a method of process‐based costing.

This paper seeks to address issues related to the development of a knowledge‐based engineering system for estimating manufacturing cost and weight of a composite structure at the conceptual stage of a design.

The system has been developed in the CATIA V5 knowledge environment and is applied to structures made of composite materials. At the conceptual stage of the design process, a structure is often represented by simple surfaces. The system adds the details necessary to accurately estimate weight and manufacturing cost using geometry and process‐based techniques. Knowledge captured from an expert was used to construct the knowledge base in the system.

It has been found that the system can provide continuous tracking of the weight and cost as the design evolves. Structural FEA and optimisation using MSC.NASTRAN have been integrated into the design process to enables the designer to conduct “what‐if” analyses to explore different design options involving geometry parameters such as the internal configuration of the structure.

The paper demonstrates that tools embedded in CAD systems can be expected to be able to facilitate the task of estimation of weight and manufacturing cost at the conceptual stage of the design process.

The purpose of this paper is to develop an integrated rotorcraft design and virtual manufacturing framework. The framework consists of two major sub‐frameworks which are e‐design and virtual manufacturing frameworks. This paper aims to describe the process of generating a specific framework for helicopter design and manufacturing in general, and a method for main rotor blade design.

The e‐design process integrates a pre‐conceptual, conceptual and preliminary design phases and includes many high accuracy physics‐based analysis tools and in‐house codes. The development of analysis programs and integration of flow data are discussed under the e‐design process. The virtual manufacturing process discusses physical three‐dimensional (3D) prototypes using rapid prototyping, virtual process simulation model development using Delmia Quest, virtual machine tool simulation and process‐based cost model. Vehicle geometry is modelled parametrically in computer‐aided 3D interactive application (CATIA) V5 to enable integration between the e‐design and virtual manufacturing processes, and then saved in Enovia SmartTeam which is commercial software for product data management (PDM). Data saved in Enovia SmartTeam are used as a database for the virtual manufacturing process.

The integration framework was constructed by using Model Center software. A multi‐disciplinary design optimization loop for rotor blade considering manufacturing factors is discussed to demonstrate the robustness and efficiency of the framework.

The manufacturing (practical factors) could be considered at an early stage of the rotor blades design.

The gap between theoretical (engineering design: aerodynamic, structural, dynamic, design, etc.) and practical aspects (manufacturing) is bridged through integrated product/process development framework. The modern concurrent engineering approach is addressed for helicopter rotor blade design throughout the case study.

Manufacturing firms are expected to implement green manufacturing and increase product complexity at a competitive price. However, a major problem for engineering managers is to ascertain the costs of embarking on green manufacturing. Thus, a planning and control methodology for costing of green manufacturing at the early design stage is important for engineering managers. The paper aims to discuss these issues.

This paper integrates “green manufacturing,” concepts of industrial dynamics, and product lifecycle aiming at developing a methodology for cost calculation. The methodology comprises of a process-based cost model and a systems dynamics (SD) model. The process-based cost model focusses mainly on carbon emission costs and energy-saving activities. Important metrics usually ignored in traditional static modeling were incorporated using SD model.

Equipment costs and carbon emission costs are major components of costs in manufacturing. The total life cycle cost of product in green manufacturing is lower than that of same product in conventional manufacturing.

The specific results of this study are limited to the case company, but can hopefully contribute to further research on ascertaining cost of implementing “green issues” in manufacturing. The proposed cost calculation model can be efficiently applied in any manufacturing firm on the basis of accessibility of real cost data. This necessitates a comprehensive cost database. At the development of the model and database management system, time and cost resources could be demanding, but once installed, use of the model becomes less demanding.

The cost model provides cost justifications of implementing green manufacturing. The reality is that green manufacturing will see its development peak with cost justifications. The results of the application show that the proposed detailed cost model can be effective in ascertaining costs of implementing green manufacturing. Manufacturing firms are recommended to adopt energy-saving activities based on the proposed detailed cost calculation model.

The main contributions of the study includes: first, to help engineering managers more accurately understand how to allocate resources for energy-saving activities through appropriate cost drivers. Second, to simulate with SD the dynamic behavior of few important metrics, often ignored in traditional mathematical modeling. The detailed model provides a pre-manufacturing decision-making tool which will assist management in implementing green manufacturing by incorporating a life cycle assessment measurement into manufacturing cost management.

The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

The purpose of this paper is to provide a service‐costing framework for logistics companies that are providing land transportation via trucks.

Several costing methodologies are combined around activity‐based costing and process modeling and a framework is developed. The developed framework is applied to a logistics company to track its service costs.

After the case study is completed, it is concluded that the proposed framework can be very useful for the company in determining their true service costs. Moreover, the service costs of the company become more apparent to them. Results of the costing information were also found very useful to initiate effective process improvement plans.

In order to execute the model effectively companies need to keep a record of the relevant costing data systematically, otherwise it is not possible to get satisfactory results.

One of the main difficulties for land transportation companies is to determine and evaluate the true costs of their operations. The proposed framework and case study can be useful for companies in developing their costing systems.

The proposed framework presents how different costing approaches can be integrated to provide effective costing solutions. In the literature it is not possible to find many case studies for the application of modern costing approaches for logistics companies. The present paper fills a gap in the literature by presenting a case study for costing logistics services via modern costing approaches.

One of the most important tools necessary for the successful implementation of a quality programme such as ISO 9000 or TQM is quality cost. A process based on cost analysis is a straightforward method to obtain and maintain management approval of a quality improvement initiative. This business‐like approach to quality assures management that quality improvement is a fiscally responsible way to serve the organization, as opposed to just complying with a set of external rules and regulations. A major benefit of employing a quality cost approach to quality improvement is that it provides a method to monitor the pertinence of projects to the overall goals of the organization. A cost‐based approach to select the quality improvement projects that are appropriate to the organization is a key part of the strategy for overall business success: to do the right things right.

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.

The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.

The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.

The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.

The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.

This paper aims to show the potential of time-driven activity-based costing (TDABC) to value and integrate corporate social responsibility (CSR) and quality management (QM) processes in the assembly industry. It provides valuable insights about operational processes, sub-process and activities within assembly companies by using TDABC’s time equations with more accurate costs for the decision-making process.

The current paper proposes a new methodology framework with four QM and CSR implementation levels and several costing scenarios through the TDABC system. The valuation was built based on the activities of essential referents in each subject, such as ISO, Ethos Institute and electrostatic discharge control programs. To this end, a case study in the assembly industry processes was conducted with data from a TV assembler.

The results highlight that TDABC can be extended to perform a cost analysis with QM and CSR processes. The environmental management and occupational safety and health administration processes were considered part of CSR to do so. Consequently, managers can simulate the cost and impact of incorporating CSR and QM in assembly processes and thus decide the implementation degree and its corresponding planning according to the needs and available resources. In this particular case, the company increases a maximum of 12% of its resources to be socially responsible and manage its products’ quality.

Although theoretical models on CSR have been developed, the current study provides a practical framework based on TDABC scenarios that enterprises can easily implement to support and evaluate QM and CSR processes.