 OPTIMIZING INDIRECT COSTS IN PROCESSING CENTERS USING THE MHR METHODBirle Vasile ()
Annals of Faculty of Economics, 2015, vol. 1, issue 2, 485-492 Abstract: The seeds of superior performance and efficiency in enterprises can usually be found during the planning stage of production costs; these will generate economic, financial or competition-related effects on the general activity. The management desiderates are in agreement with the aims of planning production costs.Within this topic we researched the behavior production costs manifest during the planning stage, determined by means of the MHR calculation method within a Processing Centre.How was this done? Researching the behavior of the main links within the enterprise, namely Processing Centers (PC); a)Exploiting production capacities in such a way as to target efficiency;b)Optimizing the relation between the degree of exploitation and indirect costs. The methods and techniques for planning production costs are greatly varied. Their practical application depends on the ability of the management, i.e. on the decision manifested in organizing and leading the enterprise. A proper management of production costs can represent an attenuation factor for the imbalances in the economy of the enterprise, as well as a source of performance in the activities carried out.The major issue of the research topic is the identification of the links between the exploitation regime and production costs. The practical applicability will be highlighted by the exhibited behavior of Processing Centers in this particular case. Once the causality and convergence link identified, this research sought to create an optimization process of the exploitation regime in accordance with the minimum level of controllable consumptions, namely of the indirect ones. The objective of this paper is to obtain an optimal relation during the planning stage of the production cost within a Processing Centre by applying the calculation technique Machine- Hour-Rates (MHR). Practically, we sought to measure the time required for the manufacturing of a product in relation to the minimum amount of time required for production; this time is dependent on the technical characteristics of the machine and especially on the production deadline.The outcomes of the research proved to be in accordance with the objectives, and the theoretical statements were validated through practical measurements.Subsequent to the research we noticed the existence of real premises for the expansion of this research topic to other Responsibility Centers, or in the case when other calculation methods are applied to production costs. Keywords: planning; calculation; optimization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2015:i:2:p:485-492 Access Statistics for this article More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC. |
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