TAYLOR - NARAYANA RAO PRINCIPLES OF INDUSTRIAL ENGINEERING
https://www.proquest.com/docview/1951119980
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Cost Measurement - Principle of Industrial Engineering
Productivity improvement has to lead to decreased cost at the unit level for products. The ultimate proof of productivity improvement is the reduced unit cost reflected in the reported unit cost of products. As cost accounting is a well-developed independent area now with statutory bodies in many countries, industrial engineers have to work in cooperation with them to get the representative cost figures that are reliable for decision making.
The cost measurement is done through cost estimating also. There are organizations that give the responsibility of cost estimating for marketing purposes to industrial engineering. It is a rational decisions and industrial engineers can provide cost estimates that reflect the current reduces cost estimates for various components and processes and give the organization the competitive edge in pricing.
by Dr. K.V.S.S. Narayana Rao in the 2017Annual Conference of IISE (Institute of Industrial and Systems Engineering) at Pittsburgh, USA on 23 May 2017
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Updated on 3 December 2019, 4 June 2019, 28 June 2017
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| 21 Cost Measurement |
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Cost Measurement - Principle of Industrial Engineering
Productivity improvement has to lead to decreased cost at the unit level for products. The ultimate proof of productivity improvement is the reduced unit cost reflected in the reported unit cost of products. As cost accounting is a well-developed independent area now with statutory bodies in many countries, industrial engineers have to work in cooperation with them to get the representative cost figures that are reliable for decision making.
Industrial engineers have to know at the start of the year, the unit cost figures of various products being produced in their organizations. They have to be involved in measuring the costs at the end of the period. Their contribution is reflected in the reduction shown in the unit costs at the end of the year. The value of the work of IEs to the company is the cost reduced over the year.
Measurement of costs today is the responsibility of cost accounting department. But it only provides the proof for the effective industrial engineering work.
Industrial engineers must learn cost measurement and they should be able to visualize how costs incurred daily become unit costs of products. Their cost reduction also first focuses on various resources used in daily work. But any saving of resource has to become a reduction in some product's unit cost. The IE must be able to see the future consequence of his current action clearly and check whether it happened or not according to his plan at the end of the period.
The cost measurement is done through cost estimating also. There are organizations that give the responsibility of cost estimating for marketing purposes to industrial engineering. It is a rational decisions and industrial engineers can provide cost estimates that reflect the current reduces cost estimates for various components and processes and give the organization the competitive edge in pricing.
Industrial Engineering Accompanied by Cost Estimating
Principles of Industrial Engineering - Presentation
by Dr. K.V.S.S. Narayana Rao in the 2017Annual Conference of IISE (Institute of Industrial and Systems Engineering) at Pittsburgh, USA on 23 May 2017
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Principles of Industrial Engineering - Narayana Rao - Detailed List
Clicking on the link will take you to more detailed content on the principle
9. Principles of motion economy to be used in all IE studies in the area of human effort engineering
11. Work measurement
21. Cost measurement
The full paper on the principles by Prof. K.V.S.S. Narayana Rao is now available for downloading from IISE 2017 Annual Conference Proceedings in Proquest Journal Base.
Updated on 3 December 2019, 4 June 2019, 28 June 2017
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