‚ses not yet
of the reasons
tional relation-
"nificant relatio
ast usefully
mst be removed.
this end.
essary) to
> have to
accurate models
active and will
various required
ps cannot be
dered in planning
of input data)
and considering
hould represent
ich have a
combination of
ications but
+ material etc.
ent time, etc. fi
Both groups depend on various factors, belonging to the four categories mentioned
earlier. This is shown schematically in fig. 9.
ENVIRONMENTAL FACTORS BASIC COST FACTORS
WITHIN THE EXECUTING PERS OI iL
ORGANISATION + EQUIP!
mo fazer EUR
|
|
ENVIRONMENTAL FACTORS |-—-— — X xd | COST MODELS
PERTAINING TO THE | COST OF
OBJECT = | PRODUCTION
- Fa UNITS
ID
| PRODUCT SPECIFICATIONS| 3 | PRODUCTION RATES
idi REQUIRED
ra , PERSONNEL TIME *
b SQUIPMENTT TIME
PROCESS PARAMETERS = MATERTAL
Fig. 9
A, Bas sic cost factors
Basic cost factors (especially personnel cost) can vary considerably from one
organisation to another. In order to establish these for an individual organisation,
one has first to identify and quantify all cost generating items within the
organisation, and secondly, to assign the cost items in the most logical way to
those categories (such as personnel, equipment, etc.) which are directly involved
in the actual production processes.
Cost generating items in an organisation are:
Salaries: of all personnel, including social insurances, cost of overtime,
cost for recruitment and training, bonusses etc.
Equipment: including purchase cost, import duties and taxes, cost of installation
maintenance. These costs have to be distributed over a realistic
period of use. (establishment of rate of depreciation and loss of
interest per year).
Material : Purchase costs, allowances for waste etc.
Building : Amortisation of purchase cost or rent, maintenance, heating, air-
conditioning, power supply, water etc.
Other cost items : e.g. for research, acquisition of work, consultancy, profit,
risk etc.
