Structural and operational optimisation : applications in energy systems

In this work mathematical programming models for structural and operational optimisation of energy systems are developed and applied to a selection of energy technology problems. The studied cases are taken from industrial processes and from large regional energy distribution systems. The models are based on Mixed Integer Linear Programming (MILP), Mixed Integer Non-Linear Programming (MINLP) and on a hybrid approach of a combination of Non-Linear Programming (NLP) and Genetic Algorithms (GA). The optimisation of the structure and operation of energy systems in urban regions is treated in the work. Firstly, distributed energy systems (DES) with different energy conversion units and annual variations of consumer heating and electricity demands are considered. Secondly, district cooling systems (DCS) with cooling demands for a large number of consumers are studied, with respect to a long term planning perspective regarding to given predictions of the consumer cooling demand development in a region. The work comprises also the development of applications for heat recovery systems (HRS), where paper machine dryer section HRS is taken as an illustrative example. The heat sources in these systems are moist air streams. Models are developed for different types of equipment price functions. The approach is based on partitioning of the overall temperature range of the system into a number of temperature intervals in order to take into account the strong nonlinearities due to condensation in the heat recovery exchangers. The influence of parameter variations on the solutions of heat recovery systems is analysed firstly by varying cost factors and secondly by varying process parameters. Point-optimal solutions by a fixed parameter approach are compared to robust solutions with given parameter variation ranges. In the work enhanced utilisation of excess heat in heat recovery systems with impingement drying, electricity generation with low grade excess heat and the use of absorption heat transformers to elevate a stream temperature above the excess heat temperature are also studied.

A Method for reducing throughput-time in industrial electronics

Lyhyet toimitusajat tuovat yrityksille kilpailuetua nopeasti muuttuvassa teollisuusympäristössä. Tämän diplomityön ensisijaisena tavoitteena on löytää kirjallisuuden avulla yrityksen käyttöön soveltuva menetelmä, joka soveltuu systemaattiseen läpimenoaikojen lyhentämiseen. Tärkeää on myös varmistaa valitun menetelmän soveltuvuus kohdeyrityksen ympäristöön. Työn toisena tavoitteena on ymmärtää, että minkälaisella panostuksella yhden päivän läpimenoaika voidaan saavuttaa. Kirjallisuustutkimuksen avulla on valittu tarkoitukseen sopiva toimintamalli. Menetelmä on testattu yhdellä tuotantolinjalla ja saadut tulokset sekä palaute osoittavat, että se näyttäisi soveltuvan kohdeyrityksen käyttöön. Tuotantolinjalle on tehty toimintasuunnitelma yhden päivän toimitusajan saavuttamiseksi vuoden 2013 aikana. Haasteen laajuutta koko kohdeyrityksessä on tutkittu erillisessä ideointisessiossa. Session tulosten perusteella on tehty prioriteettilista, joka antaa käsityksen toimitusajan merkittävän lyhentämisen vaatimuksista. Yleisesti ottaen kysynnän vaihtelun hallinta on suurin haaste, mutta useita ratkaisuvaihtoehtoja tämän hallitsemiseksi on tunnistettu.

Design of RFID-system for industrial after-sale service

RFID-tekniikka on radiotaajuudella toimivaa etätunnistusta, jossa hyödynnetään RFID-tunnisteiksi kutsuttuja tageja, sekä RFID-lukijoita. RFID-tekniikan käyttökohteet ovat erittäin laajat. Tässä kandidaatintyössä tutkitaan RFID-tekniikan hyödyntämismahdollisuuksia teollisuuden huoltopalvelusuhteessa. Työ keskittyy huollettavien laitteiden etätunnistamiseen mobiileja RFID-lukijoita hyödyntäen. Laitteiden tiedot noudetaan olemassa olevasta tietokannasta web-käyttöliittymän kautta. Koska laitteet koostuvat pääosin metallista, joudutaan tunnistetyyppien valintaa pohtimaan tarkasti. Metallipinnat sekä nesteet vaikuttavat erittäin negatiivisesti useiden tunnisteiden lukuetäisyyteen. Työssä keskitytään vaadittavan järjestelmän suunnittelemiseen aikaisempia tutkimuksia hyödyntäen, mutta itse järjestelmän toteutus ei kuulu tähän kandidaatintyöhön. Lopussa järjestelmän alustava suunnitelma esitellään.

The marketing communications industry in flux: Large B2C advertisers’ viewpoint

The recent digitization, fragmentation of the media landscape and consumers’ changing media behavior are all changes that have had drastic effects on creating marketing communications. In order to create effective marketing communications large advertisers are now co-operating with a variety of marketing communications companies. The purpose of the study is to understand how advertisers perceive these different companies and more importantly how do advertisers expect their roles to change in the future as the media landscape continues to evolve. Especially the changing roles of advertising agencies and media agencies are examined as they are at the moment the most relevant partners of the advertisers. However, the research is conducted from a network perspective rather than focusing on single actors of the marketing communications industry network. The research was conducted using a qualitative theme interview method. The empirical data was gathered by interviewing representatives from nine of the 50 largest Finnish advertisers measured by media spending. Thus, the research was conducted solely from large B2C advertisers’ perspective while the views of their other relevant actors of the network were left unexplored. The interviewees were chosen with a focus on variety of points of view. The analytical framework that was used to analyze the gathered data was built the IMP group’s industrial network model that consists of actors, their resources and activities. As technology driven media landscape fragmentation and consumers’ changing media behavior continue to increase the complexity of creating marketing communications, advertisers are going to need to rely on a growing number of partnerships as they see that the current actors of the network will not be able to widen their expertise to answer to these new needs. The advertisers expect to form new partnerships with actors that are more specialized and able to react and produce activities more quickly than at the moment. Thus, new smaller and more agile actors with looser structures are going to appear to fill these new needs. Therefore, the need of co-operation between the actors is going to become more important. These changes pose the biggest threat for traditional advertising agencies as they were seen as being most unable to cope with the ongoing change. Media agencies are in a more favorable position for remaining relevant for the advertisers as they will be able to justify their activities and provided value by leveraging their data handling abilities. In general the advertisers expect to be working with a limited number of close actors and in addition having a network of smaller actors, which are used on a more ad hoc basis.

Diversification benefits for a Finnish non-industrial private forest investor: Real Estate Investment Trusts in the USA

This thesis examined both domestic and international forest investment options for a Finnish non-industrial private forest investor. The focus was on forest-based investment instruments. The influence of movements of currency exchange rates on foreign returns were also taken into account. Annual data from 1995 to 2011 was used. The main portfolio optimization model in this study was the Mean-Variance model but the results were also validated by using the Value at Risk and Expected Shortfall models. In addition, the exchange rate risk hedging was established by using one-week-maturity forward contracts. The results suggested that 75 % of the total wealth should be invested in Finnish private forests and the rest, 25 %, to a US REIT, in this case Rayonier. With hedging, the total return on the portfolio was 7.21 % (NIPF 5.3%) with the volatility of 6.63 % (NIPF 7.9%). Taxation supported US investments in this case. As a conclusion, a Finnish private forest investor may, as evidenced, benefit in diversifying a portfolio using REITs in the US.

Customer Segmentation in Industrial Markets - CASE: Labelstock Company

The aim of this thesis is to study segmentation in industrial markets and develop a segmenting method proposal and criteria case study for a labelstock manufacturing company. An industrial company is facing many different customers with varying needs. Market segmentation is a process for dividing a market into smaller groups in which customers have the same or similar needs. Segmentation gives tools to the marketer to better match the product or service more closely to the needs of the target market. In this thesis a segmentation tool proposal and segmenting criteria is case studied for labelstock company’s Europe, Middle East and Africa business area customers and market. In the developed matrix tool different customers are planned to be evaluated based on customer characteristic variables. The criteria for the evaluating matrix are based on the customer’s buying organizations characteristics and buying behaviour. There are altogether 13 variables in the evaluating matrix. As an example of variables there are loyalty, size of the customer, estimated growth of the customer purchases and customer’s decision-making and buying behaviour. These characteristic variables will help to identify market segments to target and the customers belonging to those segments.

Profiling the Value of Industrial Maintenance Services

Industrial maintenance can be executed internally, acquired from the original equipment manufacturer or outsourced to a service provider, and this concludes in many different kind of business relationships. To maximize the total value in a maintenance business relationship it is important to know what the partner values. The value of maintenance services can be considered to consist of value elements and the perceived total value for the customer and the service provider is the sum of these value elements. The specific objectives of this thesis are to identify the most important value elements for the maintenance service customer and provider and also to recognize where the value elements differ. The study was executed as a statistical analysis using the survey method. The data has been collected by an online survey sent to 345 maintenance service professionals in Finland. In the survey, four different types of value elements were considered: the customer’s high critical and low critical items and the service provider’s core and support service. The most valued elements by the respondents were reliability, safety at work, environmental safety, and operator knowledge. The least valued elements were asset management factors and access to markets. Statistically significant differences in value elements between service types were also found. As a managerial implication a value gap profile is presented. This Master’s Thesis is part of the MaiSeMa (Industrial Maintenance Services in a Renewing Business Network: Identify, Model and Manage Value) research project where network decision models are created to identify, model and manage the value of maintenance services.

Modelling flexible asset management in industrial maintenance companies and networks

The tightening competition and increasing dynamism have created an emerging need for flexible asset management. This means that the changes of market demand should be responded to with adjustments in the amount of assets tied to the balance sheets of companies. On the other hand, industrial maintenance has recently experienced drastic changes, which have led to an increase in the number of maintenance networks (consisting of customer companies that buy maintenance services, as well as various supplier companies) and inter-organizational partnerships. However, the research on maintenance networks has not followed the changes in the industry. Instead, there is a growing need for new ways of collaboration between partnering companies to enhance the competitiveness of the whole maintenance network. In addition, it is more and more common for companies to pursue lean operations in their businesses. This thesis shows how flexible asset management can increase the profitability of maintenance companies and networks under dynamic operating conditions, and how the additional value can then be shared between the network partners. Firstly, I have conducted a systematic literature review to identify what kind of requirements for asset management models are set by the increasing dynamism. Then I have responded to these requirements by constructing an analytical model for flexible asset management, linking asset management to the profitability and financial state of a company. The thesis uses the model to show how flexible asset management can increase profitability in maintenance companies and networks, and how the created value can be shared in the networks to reach a win-win situation. The research indicates that the existing models for asset management are heterogeneous by nature due to the various definitions of ‘asset management’. I conclude that there is a need for practical asset management models which address assets comprehensively with an inter-organizational, strategic view. The comprehensive perspective, taking all kinds of asset types into account, is needed to integrate the research on asset management with the strategic management of companies and networks. I will show that maintenance companies can improve their profitability by increasing the flexibility of their assets. In maintenance networks, reorganizing the ownership of the assets among the different network partners can create additional value. Finally, I will introduce flexible asset management contracts for maintenance networks. These contracts address the value sharing related to reorganizing the ownership of assets according to the principles of win-win situations.

Modeling of fireside deposit formation in two industrial furnaces

Fireside deposits can be found in many types of utility and industrial furnaces. The deposits in furnaces are problematic because they can reduce heat transfer, block gas paths and cause corrosion. To tackle these problems, it is vital to estimate the influence of deposits on heat transfer, to minimize deposit formation and to optimize deposit removal. It is beneficial to have a good understanding of the mechanisms of fireside deposit formation. Numerical modeling is a powerful tool for investigating the heat transfer in furnaces, and it can provide valuable information for understanding the mechanisms of deposit formation. In addition, a sub-model of deposit formation is generally an essential part of a comprehensive furnace model. This work investigates two specific processes of fireside deposit formation in two industrial furnaces. The first process is the slagging wall found in furnaces with molten deposits running on the wall. A slagging wall model is developed to take into account the two-layer structure of the deposits. With the slagging wall model, the thickness and the surface temperature of the molten deposit layer can be calculated. The slagging wall model is used to predict the surface temperature and the heat transfer to a specific section of a super-heater tube panel with the boundary condition obtained from a Kraft recovery furnace model. The slagging wall model is also incorporated into the computational fluid dynamics (CFD)-based Kraft recovery furnace model and applied on the lower furnace walls. The implementation of the slagging wall model includes a grid simplification scheme. The wall surface temperature calculated with the slagging wall model is used as the heat transfer boundary condition. Simulation of a Kraft recovery furnace is performed, and it is compared with two other cases and measurements. In the two other cases, a uniform wall surface temperature and a wall surface temperature calculated with a char bed burning model are used as the heat transfer boundary conditions. In this particular furnace, the wall surface temperatures from the three cases are similar and are in the correct range of the measurements. Nevertheless, the wall surface temperature profiles with the slagging wall model and the char bed burning model are different because the deposits are represented differently in the two models. In addition, the slagging wall model is proven to be computationally efficient. The second process is deposit formation due to thermophoresis of fine particles to the heat transfer surface. This process is considered in the simulation of a heat recovery boiler of the flash smelting process. In order to determine if the small dust particles stay on the wall, a criterion based on the analysis of forces acting on the particle is applied. Time-dependent simulation of deposit formation in the heat recovery boiler is carried out and the influence of deposits on heat transfer is investigated. The locations prone to deposit formation are also identified in the heat recovery boiler. Modeling of the two processes in the two industrial furnaces enhances the overall understanding of the processes. The sub-models developed in this work can be applied in other similar deposit formation processes with carefully-defined boundary conditions.

Industrial solution business – transition from product to solution offering

The business logic in the manufacturing industry has changed in the 21st century. In the current industrial market, manufacturers are driven to provide more comprehensive offerings that go beyond the traditional product-orientation by providing capacity and availability for their customers. From incidental merchandise, services have become the core of manufacturers’ offerings with long-lasting service agreements over the life-cycles of their products. This change is driven both by the need of providers to grow and gain competitive advantage and by increased customer demand caused by customers’ outsourcing trends. The three key drivers for manufacturers’ service strategies are outsourcing trends, saturation of the installed base, and commoditization in product markets. Thus, manufacturers focus on providing industrial solutions which are delivered through relational processes with customers by using solution-driven business models. In the management of marketing activities, this can be regarded as closer customer relationships, service-dominant business logic, and collaboration in solving customers’ problems. However, there are few studies on comprehensive conceptualizations of a solution offering that include different elements and their roles, especially in the context of capital goods industry. Also the transition process needs further studies in a real life context. This study explores the transition process of an industrial company from product to solution business and, as an aid to managing the solution business, explicates the structure and management of an industrial solution offering. There are two themes, the industrial transition process and industrial solution offering. Regarding the industrial transition process, the aim is to understand the supplier view on the process and its execution and to determine the challenges related to the transition process. The industrial solution offering is discussed by its elements and characteristics, as well as management. Furthermore, a special type of build-own-operate-transfer business model is presented and its suitability in the industrial context analyzed. The study includes findings achieved by qualitative methods and from four case companies. Based on the results, it is tentatively suggested that in the industrial solution business, the transition from product to solution business is not a linear project but an evolving process that varies according to customer needs, which suggests that companies need to possess an ability to develop new business models for different customer needs. The industrial solution offering is dynamic as it evolves in collaboration according to the prevailing and latent customer needs, which suggest restructuring of the organization from a product-centric to a customer-centric one. Furthermore, based on the findings, the concept of industrial solutions is defined as an ongoing relational process to satisfy a customer’s particular business or operational requirements, and the concept of industrial solution offering as an entity comprising the customized goods, services, collaboration, and finance needed to fulfill the industrial solution. Finally, the study offers several managerial implications for industrial managers involved in the transition and management of the solution business and its offering.

Fate of fuel-bound nitrogen and sulfur in biomass-fired Industrial boilers

Användning av biomassa som energikälla för produktion av el och värme är ett sätt att minska beroendet av fossila bränslen och höja självförsörjningen av energi. Fossila bränslen är den främsta källan till koldioxid utsläpp förorsakad av människan. Biomassa, å andra sidan, betraktas som en koldioxidneutral energikälla. Svavlet och kvävet i biomassan bildar dock föroreningar såsom kväveoxider (NOX) och svaveldioxid (SO2), som bidrar till försurning av mark och sjöar. Svavlet i bränslet kan även både förorsaka och förhindra korrosion i en förbränningsanläggning, beroende på förbränningen och bränslet. Huvudsyftet med detta arbete var att få en bättre förståelse om hur utsläppen av NOX och SO2 bildas från bränslebundet kväve och svavel vid förbränning av olika biobränslen. Mätkampanjer i fullskaliga förbränningsanläggningar utfördes, där gassammansättningen mättes i eldstaden och rökgasen. Förståelsen om gaskemin i eldstaden är viktig, för att möjliggöra utvecklandet av renare och effektivare förbränningsanläggningar. Ett annat syfte med arbetet var att klargöra om sulfatering av askkomponenter vid förbränning av biobränslen med olika askegenskaper. Alkaliklorider som bildas vid biomassaförbränning kan orsaka korrosion av värmeöverföringsytor. Svavlet i bränslet visade sig ha en viktig roll i att sulfatera alkaliklorider till mindre korrosiva alkalisulfater. Närvaron av gasformig svavelsyra i rökgaskanalen av förbränningsanläggningar studerades även. Kondensering av svavelsyra leder till korrosion av rökgaskanalen och dess delar. Om svavelsyrakoncentrationen i rökgasen är känd, kan daggpunktstemperaturen beräknas och kondensering av svavelsyra förhindras. I arbetet utvecklades en mätmetod för att mäta låga koncentrationer av gasformig svavelsyra i rökgaser. Denna metod användes för att undersöka risken av lågtemperaturkorrosion orsakad av svavelsyra i förbränningsanläggningar. ------------------------------------------------------------------------------------------------------------ Käyttämällä biomassaa energianlähteenä voidaan vähentää sähkön- ja lämmöntuotannon riippuvuutta fossiilisiin polttoaineisiin. Biomassan käytöllä voidaan myös lisätä energiantuotannon omavaraisuutta. Fossiiliset polttoaineet ovat pääasiallinen syy ihmisen aiheuttamiin hiilidioksidipäästöihin. Biomassa sen sijaan luetaan hiilidioksidineutraaleihin energianlähteisiin. Biopolttoaineiden käytössä tosin vapautuu typpi- ja rikkioksideja, jotka edesauttavat maaperän ja merien happamoitumista. Lisäksi biopolttoaineen rikki voi sekä vähentää että aiheuttaa laitteiden korroosiota energiantuotannossa riippuen biopolttoaineesta ja palamisesta. Tämän työn päätavoitteena oli selvittää mitä biopolttoaineeseen sitoutuneelle typelle ja rikille tapahtuu teollisissa polttolaitoksissa. Kyseisten oksidien muodostumista tutkittiin polttamalla eri biomassoja polttolaitoksissa. Tutkimukset toteutettiin mittauskampanjoilla useissa polttolaitoksissa. Kaasujen koostumusta mitattiin sekä tulipesässä, että savukaasuista. Kaasujen koostumus varsinkin tulipesässä on tärkeää, jotta tulevaisuudessa voidaan rakentaa puhtaampia ja tehokkaampia polttolaitoksia. Työn toisena tavoitteena oli selvittää biomassan polton yhteydessä tapahtuvaa tuhkan sulfatoitumista. Alkalikloridit, joita muodostuu biomassan poltossa, voivat aiheuttaa lämmönsiirtopintojen korroosiota. Rikki osoittautui tärkeäksi osaksi prosessia, jossa korroosiota aiheuttavat alkalikloridit sulfatoituivat vähemmän korrosoiviksi alkalisulfaateiksi. Myös kaasumaisen rikkihapon läsnäoloa savukaasuissa tutkittiin. On todettu, että kaasumuotoinen rikkihappo johtaa korroosioon savukaasukanavan kylmässä päässä ja sen eri osissa rikkihapon tiivistyessä lämpötilan laskiessa. Mikäli rikkihapon pitoisuus savukaasussa tiedetään, sen kastepiste voidaan laskea ja tiivistyminen estää. Tässä työssä kehitettiin mittausmenetelmä rikkihapon alhaisten pitoisuuksien mittaamiseen. Menetelmää hyödynnettiin polttolaitoksissa, joissa tutkittiin rikkihapon tiivistymisestä johtuvaa korroosiota.

Modeling of Liquid-Solid Flow in Industrial Scale

In the present work, liquid-solid flow in industrial scale is modeled using the commercial software of Computational Fluid Dynamics (CFD) ANSYS Fluent 14.5. In literature, there are few studies on liquid-solid flow in industrial scale, but any information about the particular case with modified geometry cannot be found. The aim of this thesis is to describe the strengths and weaknesses of the multiphase models, when a large-scale application is studied within liquid-solid flow, including the boundary-layer characteristics. The results indicate that the selection of the most appropriate multiphase model depends on the flow regime. Thus, careful estimations of the flow regime are recommended to be done before modeling. The computational tool is developed for this purpose during this thesis. The homogeneous multiphase model is valid only for homogeneous suspension, the discrete phase model (DPM) is recommended for homogeneous and heterogeneous suspension where pipe Froude number is greater than 1.0, while the mixture and Eulerian models are able to predict also flow regimes, where pipe Froude number is smaller than 1.0 and particles tend to settle. With increasing material density ratio and decreasing pipe Froude number, the Eulerian model gives the most accurate results, because it does not include simplifications in Navier-Stokes equations like the other models. In addition, the results indicate that the potential location of erosion in the pipe depends on material density ratio. Possible sedimentation of particles can cause erosion and increase pressure drop as well. In the pipe bend, especially secondary flows, perpendicular to the main flow, affect the location of erosion.

The pricing of industrial services

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Older Consumers’ Adoption of Online Shopping

The thesis is concerned with the online shopping behavior of older adults, who in this study are at least 60 years old. At the moment, the population is ageing and consumers are buying more and more via the Internet. The objective of the thesis is to understand the large group of older adults in Finland as online customers.The study explores older consumers’ adoption of online shopping with a qualitative research, and it is situated in the research tradition of hermeneutic phenomenology. Phenomenology focuses on the life-world of people. The empirical data was collected by three focus groups with 13 participants altogether. The focus group conversations brought forth that there is not tremendous difference in the motives of older consumers to shop online compared to other age groups. The study strengthened the previous conception of a change toward more ageless market. However, online stores should be designed to accommodate some special needs of older consumers as they occasionally struggle with the logic of websites. Finnish older consumers have adopted online shopping because of perceived convenience and because of tolerable perceived risk during first online shopping experience. Positive experiences strengthen positive attitude toward electronic channel.