Abstract
This paper has contributed a system to cost a model called total agile design system (TADS). Using TADS helps an organisation to design its products, processes and services to achieve agility by responding to the customers’ dynamic demands. After the description of TADS, a costing system named as TADS-ABC has been introduced in this paper. As the name implies, this system has been designed to cost TADS using activity based costing (ABC) principles. After highlighting the theory, the practical application of TADS-ABC has been illustrated by substituting the relevant data derived from a TADS implementation study. This implementation study was conducted in an electronics switches manufacturing company. After processing using TADS-ABC, the specific costs to be incurred towards TADS activities, agile criteria and evolving products in an agile manner in the above company could be arrived at. The experiences of conducting this research have been used to evolve a roadmap for successfully implementing TADS-ABC in contemporary organisations.