The contribution of cyber-physical production systems to activity-based costing in manufacturing. An interventionist research approach

This study aims to investigate how the use of cyber-physical production systems (CPPS) in small manufacturing firms can facilitate the implementation of the activity-based costing (ABC) method in calculating production costs, thereby increasing the reliability of costing information for decision-making purposes. The collaboration between the research team and managers allowed an in-depth knowledge of the manufacturing problems at the investigated firm, facilitating the analysis of the manufacturing process through both a costing and a managerial perspective. Findings show that the integration of CPPS investments with the ABC method, through real-time measurement of resources by sensors, apps and part programs, leads to useful information about operations, allowing firms to improve performance and reduce resource consumption. As a result, a model of integration between the factory control system, communication network and production system is proposed.