##plugins.themes.academic_pro.article.sidebar##
Published
Dec 16, 2024
Download
Statistic
Read Counter : 254
Download : 177
Downloads
Download data is not yet available.
Main Article Content
Abstract
The alteration in the business environment is always dynamic, and the companies must respond to these issues. It is necessary for the management to always be conscious of the prevailing condition, especially in the cost aspect. Cost aspect is substantial for profit-oriented companies to lead to the profit as optimum as possible. Therefore, the cost management is requisite in order to manage cost in the proper manner. Cost management is considered as one of the essential tools to enhance the competitiveness of business potential. Through a well-defined cost management system, man-agement is capable to acquire accurate information which pro-spective to be exploited for decision-making instruments and con-trol the internal business process entirely. Many studies have been conducted to provide a more appropriate and proper cost man-agement system for the companies. The current development in-cludes integrating cost management with Kaizen, Target Cost Modeling, Target Value Design, Cost Effectiveness Analysis, and even with the Monte Carlo Simulation in order to accommodate the uncertainty factor in the cost. Therefore, this paper provides an overview related to the cost management implementation by mapping those current development into the modified Generic Product Development framework.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Basuki, S. S. A., & Tirkaamiana, D. (2024). Implementation Mapping of Integrated Cost Management Concepts with the Phases of Product Development. International Journal of Multidisciplinary: Applied Business and Education Research, 5(12), 4903-4914. https://doi.org/10.11594/ijmaber.05.12.01
References
Al-Barghuthi, S. B., Singh, H., Dannoun, Z., & Al-Barghuthi, S. B. (2020). Effect of the Kaizen Costing Approach on the Reduced Costs, Competitive Advantage, and Ra-tionalising Strategic Cost Management of Industrial Companies Listed on the Am-man Stock Exchange in Jordan.
International Journal of Innovation, Crea-tivity, and Change.
Al-hosban, A., Alsharairi, M., & Al-Tarawneh, I. (2023). RETRACTED ARTICLE: The effect of using the target cost on reducing costs in the tourism companies in Aqaba Spe-cial Economic Zone Authority. Journal of Sustainable Finance & Investment, 13(1), 194–209. https://doi.org/10.1080/20430795.2021.1891782
Ali Elfarra, M., & Kaya, M. (2021). Estimation of electricity cost of wind energy using Monte Carlo simulations based on non-parametric and parametric probability density functions. Alexandria Engineering Journal, 60(4), 3631–3640. https://doi.org/10.1016/j.aej.2021.02.027
Ansari, S., Bell, J., & Okano, H. (2006). Target Costing: Uncharted Research Territory (pp. 507–530). https://doi.org/10.1016/S1751-3243(06)02002-5
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. https://doi.org/10.1016/j.techsoc.2021.101635
Ballard, G. (2008). Lean Project Delivery Sys-tem: An Update. Lean Construction Jour-nal, 2008, 1–19. https://doi.org/10.60164/73d8h1c5c
Banarjee, B. (2021). Cost Accounting : Theory and Practice. PHI Learning Private Lim-ited.
Baraldi, E., & Strömsten, T. (2024). Product development the IKEA way – The role of target costing as a framing device to con-figure and combine resources in net-works. Industrial Marketing Manage-ment, 119, 206–217. https://doi.org/10.1016/j.indmarman.2024.04.012
Beller, J. P., Tyerman, Z., Mehaffey, J. H., Haw-kins, R. B., Charles, E. J., Yarboro, L. T., Teman, N. R., Wancheck, T., Ailawadi, G., & Mehta, N. K. (2021). Early Versus De-layed Pacemaker for Heart Block After Valve Surgery: A Cost-Effectiveness Anal-ysis. Journal of Surgical Research, 259, 154–162. https://doi.org/10.1016/j.jss.2020.11.038
Blocher, E. J., David E. S., & Paul E. J. (2019). Cost Management: A Strategic Emphasis (8th ed). McGraw Hill.
Deniz, M., & Armagan, M. (2016). Importance of Strategic Cost Management in Airline Management: Implementation of Kaizen Costing in Turkish Cargo. Internatonal Journal of Science and Research.
Drury, C. (2018). Management and Cost Ac-counting. Cengagae Learning EMEA.
Hansen, D. R., & Mowen, M. M. (2006). Cost Management: Accounting and Control (5th ed.). Thomson South-Western.
Hattami, H. Mohd. Al, Kabra, J. D., & Lokhande, M. A. (2020). Reducing costs in manufac-turing firms by using target costing tech-nique. International Journal of Business Excellence, 22(1), 69. https://doi.org/10.1504/IJBEX.2020.109216
Heck, N., Smith, C., & Hittinger, E. (2016). A Monte Carlo approach to integrating un-certainty into the levelized cost of elec-tricity. The Electricity Journal, 29(3), 21–30. https://doi.org/10.1016/j.tej.2016.04.001
Hilton, R. W., & Platt, D. E. (2017). Managerial Accounting Creating Value in a Dynamic Business Environmen. McGraw-Hill Edu-cation.
Impram, S., Varbak Nese, S., & Oral, B. (2020). Challenges of renewable energy penetra-tion on power system flexibility: A sur-vey. Energy Strategy Reviews, 31, 100539. https://doi.org/10.1016/j.esr.2020.100539
Ioannou, A., Angus, A., & Brennan, F. (2017). Stochastic Prediction of Offshore Wind Farm LCOE through an Integrated Cost Model. Energy Procedia, 107, 383–389. https://doi.org/10.1016/j.egypro.2016.12.180
Johansen, A., Engbo, A., Torp, O., & Kalsaas, B. T. (2021). Development of target cost – By the owner or together with Contrac-tors - Target Value Design. Procedia Computer Science, 181, 1171–1178. https://doi.org/10.1016/j.procs.2021.01.314
Keuffel, E. L., Stevens, M., Gunnarsson, C., Riz-zo, J., Sessler, D. I., & Maheshwari, K. (2019). A Monte Carlo simulation esti-mating US hospital cost reductions asso-ciated with hypotension control in septic ICU patients. Journal of Medical Econom-ics, 22(4), 383–389. https://doi.org/10.1080/13696998.2019.1576695
Kozlowski, R., & Matejun, M. (2011). Knowledge Management and Organiza-tional Culture of Global Organization. Publishing House of Poznan University of Technology.
Law, A. M., & Kelton, W. D. (n.d.). Simulation Modeling and Analysis. McGraw-Hill.
Mustafa Yiğit, A. (2022). Kaizen Approach to Reducing Production Costs and a Case Study. Journal of Business Research - Turk. https://doi.org/10.20491/isarder.2022.1440
Olivia, C. A., Granja, A. D., Ballard, G., & Melo, R. S. (2016). Assessing suitability of target value design adoption for real estate de-velopers in Brazil. Assesing Suitability of Target Value Design Adoption for Real Es-tate Developers in Brazil.
Omotayo, T., Awuzie, B., Egbelakin, T., Obi, L., & Ogunnusi, M. (2020). AHP-Systems Thinking Analyses for Kaizen Costing Im-plementation in the Construction Indus-try. Buildings, 10(12), 230. https://doi.org/10.3390/buildings10120230
Orihuela, P., Orihuela, J., & Pacheco, S. (2015). Communication Protocol for Implementa-tion of Target Value Design (TVD) in Building Projects. Procedia Engineering, 123, 361–369. https://doi.org/10.1016/j.proeng.2015.10.048
Paltiel, A. D., Zheng, A., & Walensky, R. P. (2020). Assessment of SARS-CoV-2 Screening Strategies to Permit the Safe Reopening of College Campuses in the United States. JAMA Network Open, 3(7), e2016818. https://doi.org/10.1001/jamanetworkopen.2020.16818
Potkány, M., Krajčírová, L., & Stasiak-Betlejewska, R. (2021). Use of Target Costing methodology in the construction of wood-aluminium windows — case study. Engineering Management in Pro-duction and Services, 13(4), 148–159. https://doi.org/10.2478/emj-2021-0037
Rad, M. A. V., Ghasempour, R., Rahdan, P., Mousavi, S., & Arastounia, M. (2020). Techno-economic analysis of a hybrid power system based on the cost-effective hydrogen production method for rural electrification, a case study in Iran. Ener-gy, 190, 116421. https://doi.org/10.1016/j.energy.2019.116421
Read, Q. D., & Muth, M. K. (2021). Cost-effectiveness of four food waste interven-tions: Is food waste reduction a “win–win?” Resources, Conservation and Recy-cling, 168, 105448. https://doi.org/10.1016/j.resconrec.2021.105448
Russell-Smith, S. V., Lepech, M. D., Fruchter, R., & Meyer, Y. B. (2015). Sustainable target value design: integrating life cycle as-sessment and target value design to im-prove building energy and environmental performance. Journal of Cleaner Produc-tion, 88, 43–51. https://doi.org/10.1016/j.jclepro.2014.03.025
Stadtherr, F., & Wouters, M. (2021). Extending target costing to include targets for R&D costs and production invest-ments for a modular product portfolio—A case study. International Journal of
Production Economics, 231, 107871. https://doi.org/10.1016/j.ijpe.2020.107871
Torp, O. (2019). How Stochastic Cost Estimates Could Be Applied in Relation to Target Value Design. 595–606. https://doi.org/10.24928/2019/0239
Ulrich, K. T., & Eppinger, S. D. ,. (2015). Prod-uct Design and Development. McGraw-Hill.
Unger, D. W., & Eppinger, S. D. (2009). Com-paring product development processes and managing risk. . International Journal of Product Development, 8(4), 382–402.
Wang, Y. (2019). Strategic Cost Management—A Review of Research Status at Home and Abroad. Modern Economy, 10(02), 513–522. https://doi.org/10.4236/me.2019.102035
Zanghelini, F., Alves de Oliveira, H., Castano Silva, T. B., da Silva Pereira, D., & Araújo de Oliveira, G. L. (2020). Cost-Effectiveness Analysis and Budget Im-pact: Antimuscarinics and Mirabegron for the Treatment of Patients With Urge Uri-nary Incontinence: The Brazilian Public Health System Perspective. Value in Health Regional Issues, 23, 85–92. https://doi.org/10.1016/j.vhri.2020.03.001
Zhu, B., Yu, L.-A., & Geng, Z.-Q. (2016). Cost estimation method based on parallel Monte Carlo simulation and market in-vestigation for engineering construction project. Cluster Computing, 19(3), 1293–1308. https://doi.org/10.1007/s10586-016-0585-6
International Journal of Innovation, Crea-tivity, and Change.
Al-hosban, A., Alsharairi, M., & Al-Tarawneh, I. (2023). RETRACTED ARTICLE: The effect of using the target cost on reducing costs in the tourism companies in Aqaba Spe-cial Economic Zone Authority. Journal of Sustainable Finance & Investment, 13(1), 194–209. https://doi.org/10.1080/20430795.2021.1891782
Ali Elfarra, M., & Kaya, M. (2021). Estimation of electricity cost of wind energy using Monte Carlo simulations based on non-parametric and parametric probability density functions. Alexandria Engineering Journal, 60(4), 3631–3640. https://doi.org/10.1016/j.aej.2021.02.027
Ansari, S., Bell, J., & Okano, H. (2006). Target Costing: Uncharted Research Territory (pp. 507–530). https://doi.org/10.1016/S1751-3243(06)02002-5
Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, 101635. https://doi.org/10.1016/j.techsoc.2021.101635
Ballard, G. (2008). Lean Project Delivery Sys-tem: An Update. Lean Construction Jour-nal, 2008, 1–19. https://doi.org/10.60164/73d8h1c5c
Banarjee, B. (2021). Cost Accounting : Theory and Practice. PHI Learning Private Lim-ited.
Baraldi, E., & Strömsten, T. (2024). Product development the IKEA way – The role of target costing as a framing device to con-figure and combine resources in net-works. Industrial Marketing Manage-ment, 119, 206–217. https://doi.org/10.1016/j.indmarman.2024.04.012
Beller, J. P., Tyerman, Z., Mehaffey, J. H., Haw-kins, R. B., Charles, E. J., Yarboro, L. T., Teman, N. R., Wancheck, T., Ailawadi, G., & Mehta, N. K. (2021). Early Versus De-layed Pacemaker for Heart Block After Valve Surgery: A Cost-Effectiveness Anal-ysis. Journal of Surgical Research, 259, 154–162. https://doi.org/10.1016/j.jss.2020.11.038
Blocher, E. J., David E. S., & Paul E. J. (2019). Cost Management: A Strategic Emphasis (8th ed). McGraw Hill.
Deniz, M., & Armagan, M. (2016). Importance of Strategic Cost Management in Airline Management: Implementation of Kaizen Costing in Turkish Cargo. Internatonal Journal of Science and Research.
Drury, C. (2018). Management and Cost Ac-counting. Cengagae Learning EMEA.
Hansen, D. R., & Mowen, M. M. (2006). Cost Management: Accounting and Control (5th ed.). Thomson South-Western.
Hattami, H. Mohd. Al, Kabra, J. D., & Lokhande, M. A. (2020). Reducing costs in manufac-turing firms by using target costing tech-nique. International Journal of Business Excellence, 22(1), 69. https://doi.org/10.1504/IJBEX.2020.109216
Heck, N., Smith, C., & Hittinger, E. (2016). A Monte Carlo approach to integrating un-certainty into the levelized cost of elec-tricity. The Electricity Journal, 29(3), 21–30. https://doi.org/10.1016/j.tej.2016.04.001
Hilton, R. W., & Platt, D. E. (2017). Managerial Accounting Creating Value in a Dynamic Business Environmen. McGraw-Hill Edu-cation.
Impram, S., Varbak Nese, S., & Oral, B. (2020). Challenges of renewable energy penetra-tion on power system flexibility: A sur-vey. Energy Strategy Reviews, 31, 100539. https://doi.org/10.1016/j.esr.2020.100539
Ioannou, A., Angus, A., & Brennan, F. (2017). Stochastic Prediction of Offshore Wind Farm LCOE through an Integrated Cost Model. Energy Procedia, 107, 383–389. https://doi.org/10.1016/j.egypro.2016.12.180
Johansen, A., Engbo, A., Torp, O., & Kalsaas, B. T. (2021). Development of target cost – By the owner or together with Contrac-tors - Target Value Design. Procedia Computer Science, 181, 1171–1178. https://doi.org/10.1016/j.procs.2021.01.314
Keuffel, E. L., Stevens, M., Gunnarsson, C., Riz-zo, J., Sessler, D. I., & Maheshwari, K. (2019). A Monte Carlo simulation esti-mating US hospital cost reductions asso-ciated with hypotension control in septic ICU patients. Journal of Medical Econom-ics, 22(4), 383–389. https://doi.org/10.1080/13696998.2019.1576695
Kozlowski, R., & Matejun, M. (2011). Knowledge Management and Organiza-tional Culture of Global Organization. Publishing House of Poznan University of Technology.
Law, A. M., & Kelton, W. D. (n.d.). Simulation Modeling and Analysis. McGraw-Hill.
Mustafa Yiğit, A. (2022). Kaizen Approach to Reducing Production Costs and a Case Study. Journal of Business Research - Turk. https://doi.org/10.20491/isarder.2022.1440
Olivia, C. A., Granja, A. D., Ballard, G., & Melo, R. S. (2016). Assessing suitability of target value design adoption for real estate de-velopers in Brazil. Assesing Suitability of Target Value Design Adoption for Real Es-tate Developers in Brazil.
Omotayo, T., Awuzie, B., Egbelakin, T., Obi, L., & Ogunnusi, M. (2020). AHP-Systems Thinking Analyses for Kaizen Costing Im-plementation in the Construction Indus-try. Buildings, 10(12), 230. https://doi.org/10.3390/buildings10120230
Orihuela, P., Orihuela, J., & Pacheco, S. (2015). Communication Protocol for Implementa-tion of Target Value Design (TVD) in Building Projects. Procedia Engineering, 123, 361–369. https://doi.org/10.1016/j.proeng.2015.10.048
Paltiel, A. D., Zheng, A., & Walensky, R. P. (2020). Assessment of SARS-CoV-2 Screening Strategies to Permit the Safe Reopening of College Campuses in the United States. JAMA Network Open, 3(7), e2016818. https://doi.org/10.1001/jamanetworkopen.2020.16818
Potkány, M., Krajčírová, L., & Stasiak-Betlejewska, R. (2021). Use of Target Costing methodology in the construction of wood-aluminium windows — case study. Engineering Management in Pro-duction and Services, 13(4), 148–159. https://doi.org/10.2478/emj-2021-0037
Rad, M. A. V., Ghasempour, R., Rahdan, P., Mousavi, S., & Arastounia, M. (2020). Techno-economic analysis of a hybrid power system based on the cost-effective hydrogen production method for rural electrification, a case study in Iran. Ener-gy, 190, 116421. https://doi.org/10.1016/j.energy.2019.116421
Read, Q. D., & Muth, M. K. (2021). Cost-effectiveness of four food waste interven-tions: Is food waste reduction a “win–win?” Resources, Conservation and Recy-cling, 168, 105448. https://doi.org/10.1016/j.resconrec.2021.105448
Russell-Smith, S. V., Lepech, M. D., Fruchter, R., & Meyer, Y. B. (2015). Sustainable target value design: integrating life cycle as-sessment and target value design to im-prove building energy and environmental performance. Journal of Cleaner Produc-tion, 88, 43–51. https://doi.org/10.1016/j.jclepro.2014.03.025
Stadtherr, F., & Wouters, M. (2021). Extending target costing to include targets for R&D costs and production invest-ments for a modular product portfolio—A case study. International Journal of
Production Economics, 231, 107871. https://doi.org/10.1016/j.ijpe.2020.107871
Torp, O. (2019). How Stochastic Cost Estimates Could Be Applied in Relation to Target Value Design. 595–606. https://doi.org/10.24928/2019/0239
Ulrich, K. T., & Eppinger, S. D. ,. (2015). Prod-uct Design and Development. McGraw-Hill.
Unger, D. W., & Eppinger, S. D. (2009). Com-paring product development processes and managing risk. . International Journal of Product Development, 8(4), 382–402.
Wang, Y. (2019). Strategic Cost Management—A Review of Research Status at Home and Abroad. Modern Economy, 10(02), 513–522. https://doi.org/10.4236/me.2019.102035
Zanghelini, F., Alves de Oliveira, H., Castano Silva, T. B., da Silva Pereira, D., & Araújo de Oliveira, G. L. (2020). Cost-Effectiveness Analysis and Budget Im-pact: Antimuscarinics and Mirabegron for the Treatment of Patients With Urge Uri-nary Incontinence: The Brazilian Public Health System Perspective. Value in Health Regional Issues, 23, 85–92. https://doi.org/10.1016/j.vhri.2020.03.001
Zhu, B., Yu, L.-A., & Geng, Z.-Q. (2016). Cost estimation method based on parallel Monte Carlo simulation and market in-vestigation for engineering construction project. Cluster Computing, 19(3), 1293–1308. https://doi.org/10.1007/s10586-016-0585-6