Assessment the capacity utilization of mature and immature area of replanting using time driven activity-based costing
Keywords:replanting, palm oil plantation, time-driven activity-based costing, capacity cost rate, time equation
Malaysia is currently the world’s largest exporter of palm oil although it is the second-largest producer of the oil after neighboring Indonesia. There have recently been few concerns on this plantation which are hard to detect in order to understand the variance in the operations, and the rate setting is inadequate to outlined the relation between the resources supplied and the capacity in operation, and the manager has no system to track the usage of the capacity and unused capacity. The aim of this work is to assess the capacity utilization of mature and immature area at replanting for a better accuracy. Time driven activity-based costs (TDABC) is used because time efficiency can be calculated effectively. Furthermore, it also can precisely evaluate idle capacity and separately listing the resources being used and not used. This work considers a data in 2017 to develop the solution. This work found that in the mature area from the available capacity utilization, chipping has high insufficient capacity with RM-1931518.08, planting seedlings has high insufficient capacity with -805173.84 min and internal transport has high waste cost with RM45771.30. Meanwhile, in the immature area, planting seedlings has high insufficient capacity with -566934.84 min and RM-1621433.64, manuring has unused capacity with 66763.50 min and internal transport has high waste cost with RM29667.47.