Finding the Fit Between Engineering Design and Cost Information

This paper analyzes the possibilities of integrating cost information and engineering design. Special emphasis is put on finding the potential of using the activity-based costing (ABC) method. Today, the problem of cost estimation in engineering design is that there are two separate extremes of knowledge. On the one extreme, the engineers model the technical parametres behindcosts in great detail but do not get appropriate cost information to their elegant models. On the other extreme, the accounting professionals are stuck with traditional cost accounting methods driven by the procedures and cycles of financial accounting. Therefore, in many cases, the cost information needs of various decision making groups, for example design engineers, are not served satisfactorily. This paper studies if the activity-based costing (ABC) method could offer a compromise between the two extremes. Recognizing activities and activity chains as well as activity and cost drivers could be specially beneficial for design engineers. Also, recognizing the accurate and reliable product costs of existing products helps when doing variant design. However, ABC is not at its best if the cost system becomes too complicated. This is why a comprehensive ABC-cost information system with detailed cost information for the use of design engineers should be examined critically. ABC is at its best when considering such issues as which activities drive costs, the cost of product complexity, allocating indirect costs on the products, the relationships between processes and costs, and the cost of excess capacity.

On the innovation capacity of technologyrelated knowledge-intensive business services. A case study of the technology and engineering consulting (TEC) sector in Singapore

Even though the research on innovation in services has expanded remarkably especially during the past two decades, there is still a need to increase understanding on the special characteristics of service innovation. In addition to studying innovation in service companies and industries, research has also recently focused more on services in innovation, as especially the significance of so-called knowledge intensive business services (KIBS) for the competitive edge of their clients, othercompanies, regions and even nations has been proved in several previous studies. This study focuses on studying technology-based KIBS firms, and technology andengineering consulting (TEC) sector in particular. These firms have multiple roles in innovation systems, and thus, there is also a need for in-depth studies that increase knowledge about the types and dimensions of service innovations as well as underlying mechanisms and procedures which make the innovations successful. The main aim of this study is to generate new knowledge in the fragmented research field of service innovation management by recognizing the different typesof innovations in TEC services and some of the enablers of and barriers to innovation capacity in the field, especially from the knowledge management perspective. The study also aims to shed light on some of the existing routines and new constructions needed for enhancing service innovation and knowledge processing activities in KIBS companies of the TEC sector. The main samples of data in this research include literature reviews and public data sources, and a qualitative research approach with exploratory case studies conducted with the help of the interviews at technology consulting companies in Singapore in 2006. These complement the qualitative interview data gathered previously in Finland during a larger research project in the years 2004-2005. The data is also supplemented by a survey conducted in Singapore. The respondents for the survey by Tan (2007) were technology consulting companies who operate in the Singapore region. The purpose ofthe quantitative part of the study was to validate and further examine specificaspects such as the influence of knowledge management activities on innovativeness and different types of service innovations, in which the technology consultancies are involved. Singapore is known as a South-east Asian knowledge hub and is thus a significant research area where several multinational knowledge-intensive service firms operate. Typically, the service innovations identified in the studied TEC firms were formed by several dimensions of innovations. In addition to technological aspects, innovations were, for instance, related to new client interfaces and service delivery processes. The main enablers of and barriers to innovation seem to be partly similar in Singaporean firms as compared to the earlier study of Finnish TEC firms. Empirical studies also brought forth the significance of various sources of knowledge and knowledge processing activities as themain driving forces of service innovation in technology-related KIBS firms. A framework was also developed to study the effect of knowledge processing capabilities as well as some moderators on the innovativeness of TEC firms. Especially efficient knowledge acquisition and environmental dynamism seem to influence the innovativeness of TEC firms positively. The results of the study also contributeto the present service innovation literature by focusing more on 'innovation within KIBs' rather than 'innovation through KIBS', which has been the typical viewpoint stressed in the previous literature. Additionally, the study provides several possibilities for further research.

Aspects on Process Engineering in the Finnish Pulp and Paper Industry : Thesis for the Degree of Licentiate in Science of Technology

Process development will be largely driven by the main equipment suppliers. The reason for this development is their ambition to supply complete plants or process systems instead of single pieces of equipment. The pulp and paper companies' interest lies in product development, as their main goal is to create winning brands and effective brand management. Design engineering companies will find their niche in detail engineering based on approved process solutions. Their development work will focus on increasing the efficiency of engineering work. Process design is a content-producing profession, which requires certain special characteristics: creativity, carefulness, the ability to work as a member of a design team according to time schedules and fluency in oral as well as written presentation. In the future, process engineers will increasingly need knowledge of chemistry as well as information and automation technology. Process engineering tools are developing rapidly. At the moment, these tools are good enough for static sizing and balancing, but dynamic simulation tools are not yet good enough for the complicated chemical reactions of pulp and paper chemistry. Dynamic simulation and virtual mill models are used as tools for training the operators. Computational fluid dynamics will certainlygain ground in process design.

Introducing Basic Systematic Requirements Engineering Practices in Small Organizations with an Easy to Adopt Method

Requirements-relatedissues have been found the third most important risk factor in software projects and as the biggest reason for software project failures. This is not a surprise since; requirements engineering (RE) practices have been reported deficient inmore than 75% of all; enterprises. A problem analysis on small and low maturitysoftware organizations revealed two; central reasons for not starting process improvement efforts: lack of resources and uncertainty; about process improvementeffort paybacks.; In the constructive part of the study a basic RE method, BaRE, was developed to provide an; easy to adopt way to introduce basic systematic RE practices in small and low maturity; organizations. Based on diffusion of innovations literature, thirteen desirable characteristics; were identified for the solution and the method was implemented in five key components:; requirements document template, requirements development practices, requirements; management practices, tool support for requirements management, and training.; The empirical evaluation of the BaRE method was conducted in three industrial case studies. In; this evaluation, two companies established a completely new RE infrastructure following the; suggested practices while the third company conducted continued requirements document; template development based on the provided template and used it extensively in practice. The; real benefits of the adoption of the method were visible in the companies in four to six months; from the start of the evaluation project, and the two small companies in the project completed; their improvement efforts with an input equal to about one person month. The collected dataon; the case studies indicates that the companies implemented new practices with little adaptations; and little effort. Thus it can be concluded that the constructed BaRE method is indeed easy to; adopt and it can help introduce basic systematic RE practices in small organizations.

Cost information in engineering design -Potentials and limitations of activity-based costing

The purpose of this thesis is to analyse activity-based costing (ABC) and possible modified versions ofit in engineering design context. The design engineers need cost information attheir decision-making level and the cost information should also have a strong future orientation. These demands are high because traditional management accounting has concentrated on the direct actual costs of the products. However, cost accounting has progressed as ABC was introduced late 1980s and adopted widely bycompanies in the 1990s. The ABC has been a success, but it has gained also criticism. In some cases the ambitious ABC systems have become too complex to build,use and update. This study can be called an action-oriented case study with some normative features. In this thesis theoretical concepts are assessed and allowed to unfold gradually through interaction with data from three cases. The theoretical starting points are ABC and theory of engineering design process (chapter2). Concepts and research results from these theoretical approaches are summarized in two hypotheses (chapter 2.3). The hypotheses are analysed with two cases (chapter 3). After the two case analyses, the ABC part is extended to cover alsoother modern cost accounting methods, e.g. process costing and feature costing (chapter 4.1). The ideas from this second theoretical part are operationalized with the third case (chapter 4.2). The knowledge from the theory and three cases is summarized in the created framework (chapter 4.3). With the created frameworkit is possible to analyse ABC and its modifications in the engineering design context. The framework collects the factors that guide the choice of the costing method to be used in engineering design. It also illuminates the contents of various ABC-related costing methods. However, the framework needs to be further tested. On the basis of the three cases it can be said that ABC should be used cautiously when formulating cost information for engineering design. It is suitable when the manufacturing can be considered simple, or when the design engineers are not cost conscious, and in the beginning of the design process when doing adaptive or variant design. If the design engineers need cost information for the embodiment or detailed design, or if manufacturing can be considered complex, or when design engineers are cost conscious, the ABC has to be always evaluated critically.

Elicitation of Customer Requirements with Group Methods in Software Engineering

Vaatimusmäärittely on tärkeä vaihe ohjelmistotuotannossa, koska virheelliset ja puutteelliset asiakasvaatimukset vaikuttavat huomattavasti asiakkaan tyytymättömyyteen ohjelmistotuotteessa. Ohjelmistoinsinöörit käyttävät useita erilaisia menetelmiä ja tekniikoita asiakasvaatimusten kartoittamiseen. Erilaisia tekniikoita asiakasvaatimusten keräämiseen on olemassa valtava määrä.Diplomityön tavoitteena oli parantaa asiakasvaatimusten keräämisprosessia ohjelmistoprojekteissa. Asiakasvaatimusten kartoittamiseen käytettävien tekniikoiden arvioinnin perusteella kehitettiin parannettu asiakasvaatimusten keräämisprosessi. Kehitetyn prosessin testaamiseksi ja parantamiseksi järjestettiin ryhmätyöistuntoja liittyen todellisiin ohjelmistokehitysprojekteihin. Tuloksena vaatimusten kerääminen eri sidosryhmiltä nopeutui ja tehostui. Prosessi auttoi muodostamaan yleisen kuvan kehitettävästä ohjelmistosta, prosessin avulla löydettiin paljon ideoita ja prosessi tehosti ideoiden analysointia ja priorisointia. Prosessin suurin kehityskohde oli fasilitaattorin ja osallistujien valmistautumisessa ryhmätyöistuntoihin etukäteen.

Measuring organizational capabilities in the engineering and consulting industry

Tämän työn tarkoituksena oli tutkia kuinka organisaation kyvykkyyksiä voidaan mitata engineering- ja konsultointialalla käyttämällä ns. kyvykkyysauditointimenetelmää. Päämotiivit aineettoman omaisuuden mittaamiseksi tunnistettiin kirjallisuuskatsauksen pohjalta. Erilaisten menetelmien etuja ja haittoja tutkittiin, jotta kyvykkyysauditoinnin suorittamiseen liittyvät haasteet ja vaatimukset tulisivat tunnistetuiksi. Kyvykkyysauditoinnin rakentaminen vaati teollisuudenalan erityispiirteiden tunnistamista. Niiksi havaittiin tietointensiivisyys ja projektikeskeisyys. Auditoinnin implementaatioprosessi koostui neljästä osasta, joista kolmen ensimmäisen suorittamiseen case-yritys antoi merkittävän panoksensa. Kriittisten menestystekijöiden selvittämisen jälkeen voitiin niihin vaikuttavat organisaation kyvykkyydet tunnistaa ja arviointi suorittaa. Arvioinnit kerättiin sisäisiltä ja ulkoisilta arvioijilta, ja ne muodostivat pohjan analyysille, joka selvitti yrityksen kehittämistarpeita. Kyvykkyysauditoinnin hyödyiksi laskettiin kasvanut tietämys yrityksen vahvuuksista ja heikkouksista sekä mahdollisuus tarkkailla säännöllisesti sen kokonaissuorituskykyä ja parantaa sitä.

Development of Customer Satisfaction Models for Electronics Engineering Company

Diplomityön tarkoituksena oli luoda ja kehittää kaksi asiakastyytyväisyysmallia asiakastyytyväisyyden mittaamisen aloittamiseksi ja toteuttamiseksi kohdeyrityksessä. Työ pohjautuu nykyisten tyytyväisyysprosessien analysointiin sekä työn teoriaosaan, joka käsittelee yksityiskohtaisesti niitä asioita, joita asiakastyytyväisyyden mittaamisessa ja prosessissa tulisi huomioida. Työssä tehdyn mallien tarkoituksen on auttaa kohdeyritystä hyödyntämään asiakastyytyväisyysmittauksen tuloksia paremmin liiketoiminnassa, sekä asiakkaiden keskuudessa. Työn yhtenä tavoitteena oli myös sopivan mittaustyökalun löytäminen ja suositteleminen kohdeyritykselle.Teorian ja analysoinnin pohjalta luotiin molemmat asiakastyytyväisyysmallit vastamaan kohdeyksiköiden tarpeita. Kun ulkoiset seikat, kuten mittaustavat, mittausinstrumentit, kyselylomakkeet ja vastaajaryhmät oli määritelty, keskityttiin tulosten analysointiin ja hyödyntämiseen, mikä korostui asiakassuuntautuneessa organisaatiossa. Työssä pohdittiin myös yhtenäisen asiakastyytyväisyysprosessin merkitystä ja etuja kohdeyrityksessä.

Business Process Modeling in Software Requirements Engineering for Small and Medium Software Projects

Vaatimusmäärittelyn tavoitteena on luoda halutun järjestelmän kokonaisen, yhtenäisen vaatimusluettelon vaatimusten määrittämiseksi käsitteellisellä tasolla. Liiketoimintaprosessien mallintaminen on varsin hyödyllinen vaatimusmäärittelyn varhaisissa vaiheissa. Tämä työ tutkii liiketoimintaprosessien mallintamista tietojärjestelmien kehittämistä varten. Nykyään on olemassa erilaisia liiketoimintaprosessien mallintamiseen tarkoitettuja tekniikoita. Tämä työ tarkastaa liiketoimintaprosessien mallintamisen periaatteet ja näkökohdat sekä eri mallinnustekniikoita. Uusi menetelmä, joka on suunniteltu erityisesti pienille ja keskisuurille ohjelmistoprojekteille, on kehitetty prosessinäkökohtien ja UML-kaavioiden perusteella.

Evolutionary computing in search-based software engineering

This master’s thesis aims to study and represent from literature how evolutionary algorithms are used to solve different search and optimisation problems in the area of software engineering. Evolutionary algorithms are methods, which imitate the natural evolution process. An artificial evolution process evaluates fitness of each individual, which are solution candidates. The next population of candidate solutions is formed by using the good properties of the current population by applying different mutation and crossover operations. Different kinds of evolutionary algorithm applications related to software engineering were searched in the literature. Applications were classified and represented. Also the necessary basics about evolutionary algorithms were presented. It was concluded, that majority of evolutionary algorithm applications related to software engineering were about software design or testing. For example, there were applications about classifying software production data, project scheduling, static task scheduling related to parallel computing, allocating modules to subsystems, N-version programming, test data generation and generating an integration test order. Many applications were experimental testing rather than ready for real production use. There were also some Computer Aided Software Engineering tools based on evolutionary algorithms.

Cost Estimation of Engineering Environment Services

Työn tavoitteena oli kehittää tutkittavan insinööriyksikön projektien kustannusestimointiprosessia, siten että yksikön johdolla olisi tulevaisuudessa käytettävänään tarkempaa kustannustietoa. Jotta tämä olisi mahdollista, ensin täytyi selvittää yksikön toimintatavat, projektien kustannusrakenteet sekä kustannusatribuutit. Tämän teki mahdolliseksi projektien kustannushistoriatiedon tutkiminen sekä asiantuntijoiden haastattelu. Työn tuloksena syntyi kohdeyksikön muiden prosessien kanssa yhteensopiva kustannusestimointiprosessi sekä –malli.Kustannusestimointimenetelmän ja –mallin perustana on kustannusatribuutit, jotka määritellään erikseen tutkittavassa ympäristössä. Kustannusatribuutit löydetään historiatietoa tutkimalla, eli analysoimalla jo päättyneitä projekteja, projektien kustannusrakenteita sekä tekijöitä, jotka ovat vaikuttaneet kustannusten syntyyn. Tämän jälkeen kustannusatribuuteille täytyy määritellä painoarvot sekä painoarvojen vaihteluvälit. Estimointimallin tarkuutta voidaan parantaa mallin kalibroinnilla. Olen käyttänyt Goal – Question – Metric (GQM) –menetelmää tutkimuksen kehyksenä.

Web Software Engineering - value added approach

Taking the maximum advantage of technological innovations and the investment in them is of key importance for businesses. The IT industry offers a wide range of innovative high-technology solutions to manage information processing and distribution. However for end-user businesses to make informed decisions in this area is challenging. The aim of this research is to identify the key differences in principal solutions, and what the selection criteria should be for those involved. Existing methodologies for software development are classified, and some key criteria are described to help IT system developers and users determine what are the most important factors in system selection, development and deployment. Statistical data is researched and analysed, a theoretical basis is developed and reviewed, key issues from case studies are identified and generalized to be presented along with the conclusions in the current study. The results give a good basis for corporate consideration and provide overall support to the key decisions in developing web-based software. The conclusion is that new web developments should be considered the stakeholders as an evolution of existing business systems, but they should then pay particular attention to the new advantages that web-based software offers in terms of standardised interfaces and procedures, universal deployment opportunities, and a range of other benefits the study highlights.

Macroporous Scaffolds for Bone Engineering. Studies on Cell Culture and Ectopic Bone Formation

Bone engineering is a rapidly developing area of reconstructive medicine where bone inducing factors and/or cells are combined with a scaffold material to regenerate the structure and function of the original tissue. The aim of this study was to compare the suitability of different macroporous scaffold types for bone engineering applications. The two scaffold categories studied were a) the mechanically strong and stable titanium fiber meshes and b) the elastic and biodegradable porous polymers. Furthermore, bioactive modifications were applied to these basic scaffold types, and their effect on the osteogenic responses was evaluated in cell culture and ectopic bone formation studies. The osteogenic phenotype of cultured cell-scaffold constructs was heightened with a sol-gel derived titania coating, but not with a mixed titania-silica coating. The latter coating also resulted in delayed ectopic bone formation in bone marrow stromal cell seeded scaffolds. However, the better bone contact in early implantation times and more even bone tissue distribution at later times indicated enhanced osteoconductivity of both the coated scaffold types. Overall, the most promising bone engineering results were obtained with titania coated fiber meshes. Elastic and biodegradable poly(ε-caprolactone/D,L-lactide) based scaffolds were also developed in this study. The degradation rates of the scaffolds in vitro were governed by the hydrophilicity of the polymer matrix, and the porous architecture was controlled by the amount and type of porogen used. A continuous phase macroporosity was obtained using a novel CaCl2 • 6H2O porogen. Dynamic culture conditions increased cell invasion, but decreased cell numbers and osteogenicity, within the scaffolds. Osteogenic differentiation in static cultures and ectopic bone formation in cell seeded scaffolds were enhanced in composites, with 30 wt-% of bioactive glass filler.

Creating customer relationship management concept for engineering and service business

Customer relationship management has been one essential part of marketing for over 20 years. Today’s business environment is fast changing, international and highly competitive, and that is why the most important factor for long-term profitability is one-to-one customer relationships. However, managing relationships and serving customers that are profitable has been always challenging. In this thesis the objective was to define the main obstacles that the case company must overcome to succeed in CRM. Possible solutions have also been defined. The main elements of the implementation i.e. people, processes and technologies, can clearly be found behind these matters and solutions. This thesis also presents theoretical information about CRM and it is meant to act as a guide book inside the organisation to spread information about CRM for those who are not so familiar with the topic.