Production Cycle Optimization: Defining the Market Potential for a New Planning Tool

An optimization tool has been developed to help companies to optimize their production cycles and thus improve their overall supply chain management processes. The application combines the functionality that traditional APS (Advanced Planning System) and ARP (Automatic Replenishment Program) systems provide into one optimization run. A qualitative study was organized to investigate opportunities to expand the product’s market base. Twelve personal interviews were conducted and the results were collected in industry specific production planning analyses. Five process industries were analyzed to identify the product’s suitability to each industry sector and the most important product development areas. Based on the research the paper and the plastic film industries remain the most potential industry sectors at this point. To be successful in other industry sectors some product enhancements would be required, including capabilities to optimize multiple sequential and parallel production cycles, handle sequencing of complex finishing operations and to include master planning capabilities to support overall supply chain optimization. In product sales and marketing processes the key to success is to find and reach the people who are involved directly with the problems that the optimization tool can help to solve.

Käyttöpääoma ja nettokäyttöpääoma eri teollisuudenaloilla

Käyttöpääoman hallinta nousee ajankohtaiseksi taloudellisen laman aikana. Yritysten rahoituksen saatavuus heikkenee ja ensisijaisena keinona yritykset pyrkivät tehostamaan käyttöpääoman hallintaansa. Tämän tutkielman päätavoitteena on selvittää käyttöpääoman ja nettokäyttöpääoman välistä riippuvuutta eräillä teollisuudenaloilla. Teollisuudenaloja ovat koneenrakennus-, elintarvike ja metsäteollisuus. Työssä lähestytään päätavoitetta perehtymällä käyttöpääoman hallintaan muuttuvassa liiketoimintaympäristössä, tutkimalla nettokäyttöpääoman tasoja ja analysoimalla käyttöpääoman ja nettokäyttöpääoman luonnetta ja niiden välittämää informaatiota. Tutkielma on toteutettu käyttämällä tilinpäätösanalyysimenetelmää. Tilinpäätösaineisto on kerätty Voitto+ -tietokannasta. Tilinpäätösaineiston pohjalta on laadittu useita graafeja, joiden avulla on tutkittu käyttöpääomaan ja nettokäyttöpääomaan liittyviä muuttuvia tekijöitä. Käyttöpääoman ja nettokäyttöpääoman osalta ei voida osoittaa selkeää säännönmukaisuutta riippuvuutta tutkittaessa. Käyttöpääoman havaittiin kuvastavan enemmän liiketoiminnan laajuuden kehittymistä. Nettokäyttöpääoma vuorostaan kuvasti maksuvalmiuden ohella yrityksen liiketoiminnassa tapahtuvia suurempia muutoksia.

Role of oxidation-reduction cycle of iron in direct leaching of zinc concentrate

Direct leaching is an alternative to conventional roast-leach-electrowin (RLE) zinc production method. The basic reaction of direct leach method is the oxidation of sphalerite concentrate in acidic liquid by ferric iron. The reaction mechanism and kinetics, mass transfer and current modifications of zinc concentrate direct leaching process are considered. Particular attention is paid to the oxidation-reduction cycle of iron and its role in direct leaching of zinc concentrate, since it can be one of the limiting factors of the leaching process under certain conditions. The oxidation-reduction cycle of iron was experimentally studied with goal of gaining new knowledge for developing the direct leaching of zinc concentrate. In order to obtain this aim, ferrous iron oxidation experiments were carried out. Affect of such parameters as temperature, pressure, sulfuric acid concentration, ferrous iron and copper concentrations was studied. Based on the experimental results, mathematical model of the ferrous iron oxidation rate was developed. According to results obtained during the study, the reaction rate orders for ferrous iron concentration, oxygen concentration and copper concentration are 0.777, 0.652 and 0.0951 respectively. Values predicted by model were in good concordance with the experimental results. The reliability of estimated parameters was evaluated by MCMC analysis which showed good parameters reliability.

Determinants of cash holdings in Finnish industrial sector: measuring the impact of financial crisis 2007- 2010

This thesis studies cash and short term investments to net assets ratio of Finnish industrial companies during financial crisis, and how different firm specific and macro economical variables affect cash and short term investments. The data consists of quarter level interim reports. Regression analysis was used to find out the effects of different variables. Regression models were formed based on previous studies on cash holdings. It was found that firms studied held more cash during financial crisis than before it. Cash and short-term investments acted as substitute of net working capital. Leverage had a positive and significant relationship to cash and short term investment ratio. It was also found out that firms have a target cash and short term investments ratio.

Working capital management in the value chain of automotive industry

The objective of this Master’s thesis is to examine working capital management in the automotive industry in years 2006-2008. The study is conducted by the analysis of financial statements. The sample consists of 65 companies that represent different stages in the value chain of automotive industry beginning from raw material suppliers and ending to car dealers. Working capital management is studied by the cash conversion cycle (CCC). The results show that the average CCC of the value chain is 67 days. Car manufacturers had the longest CCC, 106 days, whereas the CCC of oil companies was the shortest, 22 days. The findings suggest that the cycle time of working capital usually follows the cycle time of inventories, since the changes in cycle times of accounts receivable and payable compensate each other. Improvements in working capital management could be achieved by sharing more accurate information in the chain for example about inventory levels and order points of customer. It could also be discussed within the automotive industry, if the long credit periods, which tie up working capital, are really needed. New technologies enable faster payments, which would reduce the cash conversion cycles, improve the profitability of companies, and increase the competitiveness of the value chain. Working capital should not be reduced at the expense of value chain partners, because nowadays the competition is rather between the value chains than between the companies. Similar research design is applied earlier to study working capital management in the value chain of pulp and paper industry. Even if the industries and the structures of the chains differ from each other, results were surprisingly similar. In future research, working capital management in other industries’ value chains could still be studied and compared to previous studies. ICT industry, for example, could be an interesting object.

The Process of Greening Cycle as Method of Operative Environmental

The structural change of society from product-based business to service- and further to need-based business has caused the fact that work for environmental issues has spread from conventional factories and environmentally harmful production to concern services and offices as well. Almost every company has an office, so a relatively small environmental burden caused by an individual office grows remarkable already at the state level and globally even more. Motivation to work for environmental issues in an individual office could be challenging even without the fact that wasted environmental impacts bound also wasted costs. Besides cost savings, a concretely greener image of a company has its value in the B2Cas well as in the B2B-field. Consumers and clients are more and more conscious of environmental issues and demand concrete actions instead of speeches, good thoughts and meaningless certifications. Internal work for environmental issues at a strategy level is not sufficient, so operational environmental management is needed for changing old practices. This research is about the effects of operative environmental management on the greening process of an office-based business. The research is outlined to concern the operative work in the office including field sales. Target was to concretely lower the environmental impacts of Lyreco Finland and to find cost savings directly by changing the operative practices in the office and also indirectly by affecting the level of environmental knowledge of the personnel. During the greening process, the aim was also to create concrete arguments for marketing as well. The circle of greening process, which was especially created for this diploma work, was used as a method. The circle divides a year to themes and sections separated by factors of environmental impacts. Separation is based on Brett Wills’ thoughts of seven green wastes (Wills, Brett. The Green Intensions. 2009) and follows it uneasily. The circle aimed at ensuring evolutionary growth of knowledge instead of being revolutionary in the changing process. Committing personnel to the process from its start by asking ideas from them and giving them clear directions was an important part of the research of operative management. Because of working from distance, communication with personnel was operated by frequent training days and weekly greening notes via emails and intranet. Also availability for communication was an important task because of the telecommuting. Research results of this work show that operative environmental management in an officebased business today is mostly management of change. When the strategic environmental friendliness is taken into a concrete level, the most important individual factor is motivating the operating personnel. Research shows that evolutionary change is found being an efficient way to make a change. Also understanding one´s own impact on the environmental burden and on the whole greening process clearly motivates the personnel. Results show that in the operative realization of the greening process, clear directions of new working practices, being as concrete as possible, and committing personnel to follow them make the process more effective. The operative environmental management and the cycle of the greening process decrease the environmental burden and save costs. The concrete results could be used as believable arguments in marketing and therefore exploited in communication with interest groups. Commitment of the management is also one of the key factors of success in the greening process. In this research, changes in the business field by a company trade took the focus of the management away from the greening process and made the process more inefficient by decreasing the amount of training days. The circle of greening process will be used as a tool in the future, as well, and therefore it will help observe environmental impacts of a company and increase sustainable development. Commitment of management to the evolutionary environmental work helps the operating personnel lower environmental impacts, decrease costs and build a concretely greener image.

Customer relationship management through life cycle analysis, case professional service firm in B2B market

The objective of this master’s thesis was to study how customer relationships should be assessed and categorized in order to support customer relationship management (CRM) in the context of business-to-business (B2B) and professional services. This sophisticated and complex market is utilizing possibilities of CRM only rarely and even then the focus is often on technology. The theoretical part considered first CRM from the value chain point of view and then discussed the cyclical nature of relationships. The case study focused on B2B professional service firm. The data was collected from company databases and included the sample of 90 customers. The research was conducted in three phases first studying the age, then the service type of relationships and finally executing the cluster analysis. The data was analysed by statistical analysis program SAS Enterprise Guide. The results indicate that there are great differences between developments of customer relationships. While some relationships are dynamically growing and changing, most of customers are remaining constant. This implies expectations and requirements of customers are similarly divergent and relationships should be managed accordingly.

Generic Life Cycle Cost Model and Cost-effective Solutions

Life cycle costing (LCC) practices are spreading from military and construction sectors to wider area of industries. Suppliers as well as customers are demanding comprehensive cost knowledge that includes all relevant cost elements through the life cycle of products. The problem of total cost visibility is being acknowledged and the performance of suppliers is evaluated not just by low acquisition costs of their products, but by total value provided through the life time of their offerings. The main purpose of this thesis is to provide better understanding of product cost structure to the case company. Moreover, comprehensive theoretical body serves as a guideline or methodology for further LCC process. Research includes the constructive analysis of LCC related concepts and features as well as overview of life cycle support services in manufacturing industry. The case study aims to review the existing LCC practices within the case company and provide suggestions for improvements. It includes identification of most relevant life cycle cost elements, development of cost breakdown structure and generic cost model for data collection. Moreover, certain cost-effective suggestions are provided as well. This research should support decision making processes, assessment of economic viability of products, financial planning, sales and other processes within the case company.

Integration in project business : mechanisms for integrating customers and the project network during the life-cycle of industrial projects

This thesis focuses on integration in project business, i.e. how projectbased companies organize their product and process structures when they deliver industrial solutions to their customers. The customers that invest in these solutions run their businesses in different geographical, political and economical environments, which should be acknowledged by the supplier when providing solutions comprising of larger and more complex scopes than previously supplied to these customers. This means that the suppliers are increasing their supply range by taking over some of the activities in the value chain that have traditionally been handled by the customer. In order to be able to provide the functioning solutions, including more engineering hours, technical equipment and a wider project network, a change is needed in the mindset in order to be able to carry out and take the required responsibility that these new approaches bring. For the supplier it is important to be able to integrate technical products, systems and services, but the supplier also needs to have the capabilities to integrate the cross-functional organizations and departments in the project network, the knowledge and information between and within these organizations and departments, along with inputs from the customer into the product and process structures during the lifecycle of the project under development. Hence, the main objective of this thesis is to explore the challenges of integration that industrial projects meet, and based on that, to suggest a concept of how to manage integration in project business by making use of integration mechanisms. Integration is considered the essential process for accomplishing an industrial project, whereas the accomplishment of the industrial project is considered to be the result of the integration. The thesis consists of an extended summary and four papers, that are based on three studies in which integration mechanisms for value creation in industrial project networks and the management of integration in project business have been explored. The research is based on an inductive approach where in particular the design, commissioning and operations functions of industrial projects have been studied, addressing entire project life-cycles. The studies have been conducted in the shipbuilding and power generation industries where the scopes of supply consist of stand-alone equipment, equipment and engineering, and turnkey solutions. These industrial solutions include demanding efforts in engineering and organization. Addressing the calls for more studies on the evolving value chains of integrated solutions, mechanisms for inter- and intra-organizational integration and subsequent value creation in project networks have been explored. The research results in thirteen integration mechanisms and a typology for integration is proposed. Managing integration consists of integrating the project network (the supplier and the sub-suppliers) and the customer (the customer’s business purpose, operations environment and the end-user) into the project by making use of integration mechanisms. The findings bring new insight into research on industrial project business by proposing integration of technology and engineering related elements with elements related to customer oriented business performance in contemporary project environments. Thirteen mechanisms for combining products and the processes needed to deliver projects are described and categorized according to the impact that they have on the management of knowledge and information. These mechanisms directly relate to the performance of the supplier, and consequently to the functioning of the solution that the project provides. This thesis offers ways to promote integration of knowledge and information during the lifecycle of industrial projects, enhancing the development towards innovative solutions in project business.

Working capital management in the small and medium-sized enterprises Case: Project-based business environment in Flowrox Oy

This Master´s thesis illustrates how growing a business ties up the company´s working capital and what the cost of committed capital. In order to manage a company´s working capital in rapid business growth phase, the thesis suggests that by monitoring and managing the operating and cash conversion cycles of customers´ projects, a company can find ways to secure the required amount of capital. The research method of this thesis was based on literature reviews and case study research. The theoretical review presents the concepts of working capital and provides the background for understanding how to improve working capital management. The company in subject is a global small and medium-sized enterprise that manufactures pumps and valves for demanding process conditions. The company is expanding, which creates lots of challenges. This thesis concentrates to the company´s working capital management and its efficiency through the supply chain and value chain perspective. The main elements of working capital management are inventory management, accounts receivable management and accounts payable management. Prepayments also play a significant role, particularly in project-based businesses. Developing companies´ working capital management requires knowledge from different kind of key operations´ in the company, like purchasing, production, sales, logistics and financing. The perspective to develop and describe working capital management is an operational. After literature reviews the thesis present pilot projects that formed the basis of a model to monitor working capital in the case company. Based on analysis and pilot projects, the thesis introduces a rough model for monitoring capital commitments in short time period. With the model the company can more efficiently monitor and manage their customer projects.

Käyttöpääoman sitoutuminen ja kiertoajat lääkejakeluketjussa

Työn tavoitteenaan oli selvittää suomalaisen lääkejakeluketjun rakenne sekä saada selkeä kuva ketjun toiminnan tehokkuudesta käyttöpääoman sitoutumisen ja kiertoaikojen osalta. Työn alussa käydään läpi teoriaa ja tutkimusta käyttöpääomasta ja sen erien kiertoajoista sekä erityisesti niiden huomioimisesta arvoketjussa. Lisäksi esitellään Suomen lääkemarkkinoiden toimintaa sekä sen toimijoita. Työn empiirinen osa suoritettiin kahdessa päävaiheessa. Ensin analysoitiin Voitto+ -ohjelmasta saatuja valittujen lääkejakeluketjun yritysten julkisia tilinpäätöstietoja ajalta 2005- 2011. Analysointi perustui käyttöpääoman sekä sen erien myyntisaamisten, ostovelkojen ja vaihto-omaisuuden kiertoaikojen laskemiseen. Ketjun yrityksiä vertailtiin toisiinsa ketjun osien keskimääräisten kiertoaikojen osalta ja saatiin selville niiden suhteellinen sijoittuminen toisiinsa nähden. Työn toisessa päävaiheessa haastateltiin esimerkkitoimijaa käsitellyn lääkejakeluketjun jokaisesta osasta: lääketehdas, tukkujakelija ja apteekki. Työssä huomattiin, että käyttöpääoman kiertoaikaan lääkejakeluketjussa vaikuttaa ensisijaisesti ketjun osan toiminnan luonne ja käyttöpääoman hallinnan tehokkuus lääkejakeluketjun toimijoiden välillä vaihtelee osaamisen ja resurssien mukaan. Ketjun eri osissa painottuvat eri käyttöpääoman erät ja ketjun toiminta on optimoitunut aikojen saatossa hyvin stabiiliin tilaan, jota ketjun jäsenillä ei näytä olevan halua muuttaa. Lääkejakeluketjun käyttöpääomaan hallintaa voitaisiin tehostaa varastonhallintaa parantamalla sekä informaation jakamisella saattamalla kysyntätiedot nopeammin koko ketjun tietoon.

Vertaileva tutkimus suomalaisten talonrakennusyritysten likviditeetin hallinnasta vuosina 2005–2009

Tutkielman mukaan käyttöpääoman määrä valikoiduissa yrityksissä on kasvanut rahoituskriisin ajankohtana. Käyttöpääomaa sitoo talonrakennusteollisuudessa erityisesti henkilöstökustannukset, joiden nopea optimointi on tutkimuksen perusteella avainasemassa yrityksen kannattavuuteen. Käyttöpääoman optimointi suhteessa liiketoiminnan laajuuteen on perusteltatissa tutkimuksen mukaan myös sen takia, että talonrakennusteollisuuden yritykset ovat erityisen alttiita makrotaloudellisille vaihteluille.

Käyttöpääoman mittaaminen valmistavassa teollisuudessa

Käyttöpääoman hallinta on yrityksille tärkeä osa talouden hallintaa. Tehokkaalla käyttöpääoman hallinnalla pystytään vaikuttamaan positiivisesti yrityksen kannattavuuteen ja maksuvalmiuteen. Tämän tutkielman tavoitteena on selvittää käytetyimmät käyttöpääoman mittarit prosessinäkökulmasta, sekä analysoida mittareiden antamia tuloksia. Prosessinäkökulman mittarit kertovat käyttöpääoman tarpeen päivissä. Prosessinäkökulman mittareiden laskemiseksi tarvitaan harvemmin tietoa, joka on vain ylimmän johdon käytettävissä. Tutkielma on kirjallisuustutkimus, jonka lähteinä on käytetty kirjallisuutta ja tieteellisiä artikkeleita. Empiirisessä osassa on laskettu käyttöpääomamittareiden tulokset kolmelle valmistavan teollisuuden yritykselle, sekä analysoitu tutkimustuloksia. Tunnusluvut on koottu yritysten julkisten tilinpäätösten perusteella. Käyttöpääomalle löytyi prosessinäkökulmasta vain muutamia mittareita. Kaikki käyttöpääomalle löydetyt prosessinäkökulman mittarit olivat joko käyttöpääomasyklin osakokonaisuuksia tai sen variaatioita. Käyttöpääomasykli osoittautui käytetyimmäksi prosessinäkökulman mittariksi tutkielmassa käytettyjen artikkeleiden perusteella.

The holistic military capability life cycle model

Abstract - This paper reviews existing military capability models and the capability life cycle. It proposes a holistic capability life-cycle model (HCLCM) that combines capability systems with related capability models. ISO 15288 standard is used as a framework to construct the HCLCM. The HCLCM also shows how capability models and systems relate to each other throughout the capability life cycle. The main contribution of this paper is conceptual in nature. The model complements the existing, but still evolving, understanding of the military capability life cycle in a holistic and systemic way. The model also increases understanding and facilitates communication among various military capability stakeholders.