Diagnosis and Costing Optimization on Inductors in Electrics and Electronics Industry

  • Filzah Lina Mohd Safeiee
  • Mohd Yazid AbuEmail author
  • Nik Nurharyantie Nik Mohd Kamil
  • Nurul Farahin Zamrud
Conference paper
Part of the Lecture Notes in Mechanical Engineering book series (LNME)


The issue of quality and cost of product will be the important aspects in manufacturing industry. But generally, most organization will separate between these two but it is good chance to combine between quality and cost during production process especially for costing improvement. This work presents the application of the Mahalanobis–Taguchi system (MTS) with Time-driven activity-based costing (TDABC). Therefore, the aim of this research is to do the diagnosis process on production line in electric and electronics Company using MTS and TDABC. Mahalanobis distance (MD), which is well known in multivariate statistics through MTS which is a data analytic method for diagnosis and pattern recognition of multivariate data. From this work can state that, the higher the MD, the higher the impact of the parameter to the normal condition. TDABC is a method used to calculate the capacity cost rate multiplied by the time activity, and then MTS is the method to find out the abnormal condition of the data. By using diagnosis MTS method with ABC and TDABC the analysis of electronics manufacturing industry performance indicators, it is possible to produce accurate analysis for managerial decisions.


Mahalanobis Taguchi method Time-driven activity-based costing Mahalanobis distance 



This research is fully supported by Ministry of Higher Education through RDU190156 and FRGS/1/2018/TK03/UMP/02/34. The authors fill acknowledged Universiti Malaysia Pahang for the approved fund which makes this important research viable and effective.


  1. 1.
    Herzallah, A.M., Gutiérrez, L., Rosas, J.F.M.: Total quality management practices, competitive strategies and financial performance: the case of the Palestinian industrial SMEs. Total Qual. Manage. Bus. Excell. 25(5–6), 635–649 (2014)CrossRefGoogle Scholar
  2. 2.
    Das, P., Datta, S.: Developing an unsupervised classification algorithm for characterization of steel properties (2012)CrossRefGoogle Scholar
  3. 3.
    Da Silva Medeiros, H., Santana, A.F.B., Da Silva Guimarães, L.: The use of costing methods in lean manufacturing industries: a literature review. Gest. e Prod. 24(2), 395–406 (2017)CrossRefGoogle Scholar
  4. 4.
    El-banna, M.: Modified mahalanobis taguchi system for imbalance data classification, vol. 2017 (2017)CrossRefGoogle Scholar
  5. 5.
    Yu, Y.R., et al.: Time-driven activity-based costing: a dynamic value assessment model in pediatric appendicitis. J. Pediatr. Surg. 52(6), 1045–1049 (2017)CrossRefGoogle Scholar
  6. 6.
    Deepa, N., Ganesan, K.: Mahalanobis Taguchi system based criteria selection tool for agriculture crops. Sādhanā 41(12), 1407–1414 (2016)Google Scholar
  7. 7.
    Hamid, K.S., Matson, A.P., Nwachukwu, B.U., Scott, D.J., Iii, R.C.M., Deorio, J.K.: Determining the cost-savings threshold and alignment accuracy of patient-specific instrumentation in total ankle replacements (2017)Google Scholar
  8. 8.
    Yazid, A.M., Rijal, J.K., Awaluddin, M.S., Sari, E.: Pattern recognition on remanufacturing automotive component as support decision making using Mahalanobis-Taguchi system. In: 12th Global Conference on Sustainable Manufacturing, vol. 26, pp. 258–263 (2015)CrossRefGoogle Scholar
  9. 9.
    Abu, M.Y., Jamaluddin, K.R., Zakaria, M.A.: Classification of crankshaft remanufacturing using Mahalanobis-Taguchi system. Int. J. Autom. Mech. Eng. 13(2), 3413–3422 (2017)CrossRefGoogle Scholar
  10. 10.
    Kamil, N.N.N.M., Abu, M.Y.: Integration of Mahalanobis-Taguchi system and activity based costing for remanufacturing decision. J. Mod. Manuf. Syst. Technol. 1, 39–51 (2018)Google Scholar
  11. 11.
    Abu, M.Y., Nor, E.E.M., Rahman, M.S.A.: Costing improvement of remanufacturing crankshaft by integrating Mahalanobis-Taguchi system and activity based costing. In: IOP Conference Series: Materials Science and Engineering, vol. 342, pp.1–10 (2018)CrossRefGoogle Scholar
  12. 12.
    Abu, M.Y., Norizan, N.S., Rahman, M.S.A.: Integration of Mahalanobis-Taguchi system and traditional cost accounting for remanufacturing crankshaft. In: IOP Conference Series: Materials Science and Engineering, vol. 342, pp. 1–9 (2018)CrossRefGoogle Scholar
  13. 13.
    Zaini, S.N.A.M., Abu, M.Y.: A review on time-driven activity based costing system in various sectors. J. Mod. Manuf. Syst. Technol. 2, 15–22 (2019)Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Filzah Lina Mohd Safeiee
    • 1
  • Mohd Yazid Abu
    • 1
    Email author
  • Nik Nurharyantie Nik Mohd Kamil
    • 1
  • Nurul Farahin Zamrud
    • 1
  1. 1.Faculty of Mechanical and Manufacturing EngineeringUniversiti Malaysia PahangPekanMalaysia

Personalised recommendations