Implementing efficient graphs in connection networks

We consider the problem of sharing the cost of a network that meets the connection demands of a set of agents. The agents simultaneously choose paths in the network connecting their demand nodes. A mechanism splits the total cost of the network formed among the participants. We introduce two new properties of implementation. The first property, Pareto Nash implementation (PNI), requires that the efficient outcome always be implemented in a Nash equilibrium and that the efficient outcome Pareto dominates any other Nash equilibrium. The average cost mechanism and other asymmetric variations are the only mechanisms that meet PNI. These mechanisms are also characterized under strong Nash implementation. The second property, weakly Pareto Nash implementation (WPNI), requires that the least inefficient equilibrium Pareto dominates any other equilibrium. The egalitarian mechanism (EG) and other asymmetric variations are the only mechanisms that meet WPNI and individual
rationality. EG minimizes the price of stability across all individually rational mechanisms. © Springer-Verlag Berlin Heidelberg 2012

Sharing services, saving money? Five risks to cost saving when organizations share administrative services

Shared services are a popular reform for governments under financial pressure. The hope is to reduce overheads and increase efficiency by providing support services like HR, finance and procurement once to multiple agencies. Drawing on insights from organization theory and political science, we identify five risks that shared services won’t live up to current expectations. We illustrate each with empirical evidence from the UK, Ireland and further afield, and conclude with suggestions on how to manage these risks.

Influence of Manufacturing Tolerance on Aircraft Direct Operating Cost (DOC)

The influence of manufacturing tolerance on direct operating cost (DOC) is extrapolated from an engine nacelle to be representative of an entire aircraft body. Initial manufacturing tolerance data was obtained from the shop floor at Bombardier Aerospace Shorts, Belfast while the corresponding costs were calculated according to various recurring elements such as basic labour and overtime labour, rework, concessions, and redeployment; along with the non-recurrent costs due to tooling and machinery, etc. The relation of tolerance to cost was modelled statistically so that the cost impact of tolerance change could be ascertained. It was shown that a relatively small relaxation in the assembly and fabrication tolerances of the wetted surfaces resulted in reduced costs of production that lowered aircraft DOC, as the incurred drag penalty was predicted and taken into account during the optimisation process.

Numerical Method for Cost-Weight Optimisation of Stringer-Skin Panels

The need to integrate cost into the early product definition process as an engineering parameter is addressed. The application studied is a fuselage panel that is typical for commercial transport regional jets. Consequently, a semi-empirical numerical analysis using reference data was coupled to model the structural integrity of thin-walled structures with regard to material failure and buckling: skin, stringer, flexural, and interrivet. The optimization process focuses on direct operating cost (DOC) as a function of acquisition cost and fuel burn. It was found that the ratio of acquisition cost to fuel burn was typically 4:3 and that there was a 10% improvement in the DOC for the minimal DOC condition over the minimal weight condition because of the manufacturing cost saving from having a reduced number of larger-area stringers and a slightly thicker skin than that preferred by the minimal weight condition. Also note that the minimal manufacturing cost condition was slightly better than the minimal weight condition, which highlights the key finding: The traditional minimal weight condition is a dated and suboptimal approach to airframe structural design.

Integrating Aircraft Cost Modelling into Conceptual Design

The article presents cost modeling results from the application of the Genetic-Causal cost modeling principle. Industrial results from redesign are also presented to verify the opportunity for early concept cost optimization by using Genetic-Causal cost drivers to guide the conceptual design process for structural assemblies. The acquisition cost is considered through the modeling of the recurring unit cost and non-recurring design cost. The operational cost is modeled relative to acquisition cost and fuel burn for predominately metal or composites designs. The main contribution of this study is the application of the Genetic-Causal principle to the modeling of cost, helping to understand how conceptual design parameters impact on cost, and linking that to customer requirements and life cycle cost.