Fuzzy activity-based costing: An investment evaluation approach for management information system of a smart factory

The investment in a smart manufacturing factory with corresponding management information systems is strategic, complex, and costly. This paper aims to develop a cost estimation framework for a smart factory management information system (SFMIS). This paper proposed a fuzzy activity-based costing (FABC) model for the evaluation of the SFMIS under conditions of uncertainty. The model presented a multi-step procedure to do the identification, estimation, determination, calculation, and computation of the resource costs, activity costs, and systems as cost objects. The fuzzy Delphi method is adopted, and seventeen experts are surveyed in two rounds of a questionnaire assessing the importance of resources, activities, systems, and industry type and company size. The proposed FABC cost estimation model is illustrated by a case study. This model can identify and allocate resources and estimate SFMIS costs accurately and efficiently. By using this FABC cost evaluation framework, policymakers facilitate smart factory implementation for its management information system under uncertainty.