Title: Cost modelling in maintenance using time-driven activity-based costing

Authors: Anwar Meddaoui; Driss Bouami

Addresses: Quality, Safety and Maintenance Laboratory, Doctoral Studies Center CED, Mohamadia Engineering School, Ecole Mohamadia d'Ingénieurs, University Mohamed V, Avenue Ibnsina B.P. 765 Agdal 10000, Rabat, Morocco ' Quality, Safety and Maintenance Laboratory, Doctoral Studies Center CED, Mohamadia Engineering School, Ecole Mohamadia d'Ingénieurs, University Mohamed V, Avenue Ibnsina B.P. 765 Agdal 10000, Rabat, Morocco

Abstract: The purpose of this paper is to demonstrate the possibility to use time-driven activity-based costing (TDABC) in maintenance cost modelling. It deals with three questions: how maintenance activities could be described? How could TDABC system model the complex maintenance processes? How could TDABC improve maintenance decision-making? This contribution is illustrated using the experience of a materials production company. The model is proposed using the process approach to describe maintenance process. The research illustrates that maintenance process cannot be modelled as a function but as a set of sub-processes. This document is one from the few papers that experiment TDABC in industrial sector. The proposed model can be used to support managers initially to identify maintenance activities and organise maintenance department. The model provides the possibility to predict the benefit costs for improvement actions before their establishment. This paper complements current discussion on the use of TDABC in the industrial costing especially maintenance costing.

Keywords: maintenance decision making; process modelling; cause and effect diagrams; time-driven ABC; activity-based costing; TDABC; cost modelling; maintenance costing.

DOI: 10.1504/IJPQM.2013.056148

International Journal of Productivity and Quality Management, 2013 Vol.12 No.3, pp.247 - 270

Available online: 31 Aug 2013 *

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