The effects of productivity on profitability: a case study at firm level using an activity-based costing approach

Productivity and profitability are important concepts and measures describing the performance and success of a firm. We know that increase in productivity decreases the costs per unit produced and leads to better profitability. This common knowledge is not, however, enough in the modern business environment. Productivity improvement is one means among others for increasing the profitability of actions. There are many means to increase productivity. The use of these means presupposes operative decisions and these decisions presuppose informationabout the effects of these means. Productivity improvement actions are in general made at floor level with machines, cells, activities and human beings. Profitability is most meaningful at the level of the whole firm. It has been very difficult or even impossible to analyze closely enough the economical aspects of thechanges at floor level with the traditional costing systems. New ideas in accounting have only recently brought in elements which make it possible to considerthese phenomena where they actually happen. The aim of this study is to supportthe selection of objects to productivity improvement, and to develop a method to analyze the effects of the productivity change in an activity on the profitability of a firm. A framework for systemizing the economical management of productivity improvement is developed in this study. This framework is a systematical way with two stages to analyze the effects of productivity improvement actions inan activity on the profitability of a firm. At the first stage of the framework, a simple selection method which is based on the worth, possibility and the necessity of the improvement actions in each activity is presented. This method is called Urgency Analysis. In the second stage it is analyzed how much a certain change of productivity in an activity affects the profitability of a firm. A theoretical calculation model with which it is possible to analyze the effects of a productivity improvement in monetary values is presented. On the basis of this theoretical model a tool is made for the analysis at the firm level. The usefulness of this framework was empirically tested with the data of the profit center of one medium size Finnish firm which operates in metal industry. It is expressedthat the framework provides valuable information about the economical effects of productivity improvement for supporting the management in their decision making.

Ohjauksen ja neuvonnan vaikutukset sepelvaltimoiden ohitusleikkauspotilaiden terveyskäyttäytymiseen, terveyteen ja toimintakykyyn

Effects of counseling and guidance on health behavior, health, and functional abilities of coronary artery bypass (cab) patients Hospital periods of heart patients are brief and full of activity today, and for that reason, the meaning of counseling and guidance becomes emphasized. The present intervention study started based on observations of staff members at the heart organization. According to these observations, there were gaps in counseling and guidance intended for coronary artery bypass (CAB) patients. The purpose of the present intervention study was to describe and evaluate the program on counseling and guidance organized for patients who were referred to CAB operations. More specifically, the study was to assess its short-term (3-month), intermediate (6-month), and long-term (12-month) effects on health behavior, health, and functional abilities of CAB patients of any age on one hand and elderly on the other, as well as on their mortality. The data consisted of those individuals having coronary heart disease (CHD) and living in Uusimaa (n = 365) who went through their first CAB operation at the Helsinki University Hospital between May 7th, 1998 and December 31st, 2001. Based on the need of urgency, they were divided into two groups: 1) surgery with regular referral procedure (non-acute) or 2) surgery in the acute phase of CHD. Randomization into an intervention and a control group was separately carried out within these two groups. A subgroup was formed by including those 65 years or older who were operated on with regular referral procedure. Data on health behavior, health, and functional abilities were gathered with survey questionnaires. Times and causes of death were examined January 1st, 1998 through December 31st, 2004. Intervention included counseling and guidance in small groups. The intervention of the non-acutely operated patients was implemented prior to and following surgery, whereas the intervention of the acutely operated patients was implemented after surgery alone. The control group received regular health care services. Counseling and guidance contributed in positive terms to the frequency of alcohol use among non-acutely operated men and to the frequencies of exercise and functional ability among women. The intervention was also capable of having an effect on the exercise frequencies of elderly and acutely operated men. The present intervention did not have an effect on the body mass index, whereas it had barely a slight effect on the health status of the CAB patients. The findings of the intervention and generalizations resulting from them must be viewed critically because the data analysis utilized a multi-testing situation, many variables, and several subgroups. The study did not involve intention to treat analysis. Additionally, a loss of patients was great especially among the elderly and acutely operated patients.

Lääkintähuollon ja materiaalihallinnon yhtenäisen RFID-seurannan perusteita

Tässä diplomityössä tarkastellaan radiotaajuisen tunnistamisteknologian (RFID) seurannan yhtenäisiä perusteita puolustusvoimien lääkintähuollolle ja materiaalihallinnolle. Nykytilaa selvitettiin pääpainona lääkintähuollon ja materiaalihallinnon osa-alueet ja samalla tarkasteltiin koko puolustusvoimien RFIDtekniikan käyttöä. Puolustusvoimissa RFID-teknologiaa käytetään myös vaatehuollon ja kulunvalvonnan toiminnoissa. Tämän työn teoriaosuudessa tarkastellaan RFID-tekniikkaa ja sen komponentteja sekä niiden hyödyntämistä eri sektoreilla ja logistiikassa. Työn empiirisessä osuudessa selvitetään, mitkä ovat puolustusvoimien tarpeet RFID:n käytöllä ja vaatimuksia ensihoidon kiireellisyysluokittelulle (TRIAGE) sekä materiaalihallinnon ja niiden kautta saatavalle tilannekuvalle. Työn tuloksena saadaan perusteita puolustusvoimien RFID-ratkaisujen suunnittelun pohjaksi.

An analytic approach to distribution logistics strategic management

Logistics management is increasingly being recognised by many companies to be of critical concern. The logistics function includes directly or indirectly many of the new areas for achieving or maintaining competitive advantage that companies have been forced to develop due to increasing competitive pressures. The key to achieving a competitive advantage is to manage the logistics function strategically which involves determining the most cost effective method of providing the necessary customer service levels from the many combinations of operating procedures in the areas of transportation, warehousing, order processing and information systems, production, and inventory management. In this thesis, a comprehensive distribution logistics strategic management process is formed by integrating the periodic strategic planning process with a continuous strategic issues management process. Strategic planning is used for defining the basic objectives for a company and assuring co operation and synergy between the different functions of a company while strategic issues management is used on a continuous basis in order to deal with environmental and internal turbulence. The strategic planning subprocess consists of the following main phases: (1) situational analyses, (2) defining the vision and strategic goals for the logistics function, (3) determining objectives and strategies, (4) drawing up tactical action plans, and (5) evaluating the implementation of the plans and making the needed adjustments. The aim of the strategic issues management subprocess is to continuously scan the environment and the organisation for early identification of the issues having a significant impact on the logistics function using the following steps: (1) the identification of trends, (2) assessing the impact and urgency of the identified trends, (3) assigning priorities to the issues, and (4) planning responses to the, issues. The Analytic Hierarchy Process (AHP) is a systematic procedure for structuring any problem. AHP is based on the following three principles: decomposition, comparative judgements, and synthesis of priorities. AHP starts by decomposing a complex, multicriteria problem into a hierarchy where each level consists of a few manageable elements which are then decomposed into another set of elements. The second step is to use a measurement methodology to establish priorities among the elements within each level of the hierarchy. The third step in using AHP is to synthesise the priorities of the elements to establish the overall priorities for the decision alternatives. In this thesis, decision support systems are developed for different areas of distribution logistics strategic management by applying the Analytic Hierarchy Process. The areas covered are: (1) logistics strategic issues management, (2) planning of logistic structure, (3) warehouse site selection, (4) inventory forecasting, (5) defining logistic action and development plans, (6) choosing a distribution logistics strategy, (7) analysing and selecting transport service providers, (8) defining the logistic vision and strategic goals, (9) benchmarking logistic performance, and (10) logistic service management. The thesis demonstrates the potential of AHP as a systematic and analytic approach to distribution logistics strategic management.

Strategic Change Management Readiness Evaluation in Organizations

The objective of this study and paper was to find out how the strategic change management readiness in organizations can be evaluated. Based on theory and prior CMP model, the framework of strategic change management and issues related to it was constructed. Additionally a synthesis of the most important phases and interventions in strategic change process and project was created. These phases were starting point, planning, implementation and evaluation and securing phases. Qualitative approach was utilized in the empirical part of the study due to the need for in-depth information about the topics surveyed through semi-structured interview. There were 18 responders from the top management of large Finnish companies. In this study interventions, strengths and weaknesses during the various phases of strategic change projects were revealed. Additionally the interviewees’ opinion on the importance of each of the interventions in strategic change project success was asked. According to this study, the most important phases recognized through researching theoretical literature, prior CMP model and empirical information in starting point phase were analysis of current and desired state and need for change accompanied with guiding coalition formulation. In planning phase the most important interventions were project organization formulation, action plan creation, analysis of prior and current strategic change projects and organizational structure analysis. In the change project implementation phase the interventions of importance were launch, quick wins, sense of urgency creation, change resistance management and change communications. In the final evaluation and securing phase project evaluation was the most important intervention. Based on the results a tool for creating change management readiness profile was created.

Porin seudun liikenneturvallisuussuunnitelma

Porin seudulle laadittiin liikenneturvallisuussuunnitelma Harjavallan, Huittisen, Kokemäen, Luvian, Merikarvian, Nakkilan, Pomarkun, Porin ja Ulvilan kuntien alueelle. Suunnitelmat laadittiin kuntien ja Varsinais-Suomen ELY-keskuksen yhteistyönä. Suunnitelma sisältää turvallisuuden parantamisen lisäksi kestävien liikkumismuotojen edistämistä. Seudun liikenneturvallisuuden ja liikkumisen ongelmia kartoitettiin kaikille kuntalaisille suunnatuilla kyselyillä, onnettomuusanalyysillä sekä maastokäynneillä. Onnettomuusanalyysin perusteella seudun liikenneturvallisuuden tila Porin seudulla on koko maan keskiarvoa heikompi. Vuosittain kuolee noin 10 henkilöä ja loukkaantuu noin 220 henkilöä. Seudulla tapahtuneista onnettomuuksista aiheutuu kustannuksia vuosittain keskimäärin noin 90 miljoonaa euroa, josta kuntien osuus on vuosittain noin 16 miljoonaa euroa. Kyselyn vastauksista ilmeni, että vastaajia huolestutti muun muassa jalankulku- ja pyöräväylien kunto ja esteettömyys sekä talvikunnossapidon taso. Autoilun olosuhteissa tyytymättömyyttä aiheutti teiden kunto ja kunnossapidon taso sekä kouluympäristöjen liikennejärjestelyt. Kyselyyn vastanneista 64 %:lla työ- tai koulumatkan pituus on korkeintaan 5 kilometriä, joten kävelyn ja pyöräilyn edistämisellä seudulla on hyvät edellytykset. Ongelma-analyysin sekä valtakunnallisten tavoitteiden pohjalta seudulle määritettiin liikenneturvallisuustavoitteet. Pitkän aikavälin liikenneturvallisuusvisioksi seudulle asetettiin, että kenenkään ei tarvitse kuolla tai loukkaantua vakavasti liikenteessä ja liikkuminen on vastuullista ja se koetaan turvalliseksi. Määrällisenä tavoitteena on, että nykyisestä 10 keskimäärin vuodessa kuolleesta seudulla kuolisi liikenteessä enintään 6 henkilöä (40 henkilöä / miljoona asukasta) vuonna 2014 ja enintään 3 henkilöä (24 henkilöä / miljoona asukasta) vuonna 2020. Loukkaantuneiden määrän tavoitteena on, että nykyisestä 218 henkilöstä vähennystä olisi 25 % (korkeintaan 163 henkilöä) vuoteen 2020 mennessä. Nuorten onnettomuusriskiä halutaan pienentää 25 % vuoteen 2020 mennessä siten, että heidän riskinsä lähenee muun väestön onnettomuusriskin tasoa. Liikenneympäristön parantamisehdotukset tehtiin noin 300 kohteeseen seudulla. Toimenpiteiden toteuttaminen vaiheistettiin kolmeen ohjeelliseen kiireellisyysluokkaan. Suunnitelmatyön aikana kuntien liikenneturvallisuustyötä aktivoitiin ja perustettiin uudet ryhmät niihin kuntiin, joista ryhmät puuttuivat. Hallintokuntatilaisuuksissa ideoitiin ja käsiteltiin eri liikkujaryhmille sopivia toimintamuotoja liikenneturvallisuuden ja kestävän liikkumisen edistämiseksi. Lisäksi muodostettiin seudullinen liikenneturvallisuusryhmä, joka seuraa ja koordinoi liikenneturvallisuustyötä tulevaisuudessa.

The effects of congestion in the daily management of a trauma hospital

Today’s healthcare organizations are under constant pressure for change, as hospitals should be able to offer their patients the best possible medical care with limited resources and, at the same time, to retain steady efficiency level in their operation. This is challenging, especially in trauma hospitals, in which the variation in the patient cases and volumes is relatively high. Furthermore, the trauma patient's care requires plenty of resources as most the patients have to be treated as single cases. Occasionally, the sudden increases in demand causes congestion in the operations of the hospital, which in Töölö hospital appears as an increase in the surgery waiting times within the yellow urgency class patients. An increase in the surgery waiting times may cause the diminution of the patient's condition, which also raises the surgery risks. The congestion itself causes overloading of the hospital capacity and staff. The aim of this master’s thesis is to introduce the factors contributing to the trauma process, and to examine the correlation between the different variables and the lengthened surgery waiting times. The results of this study are based on a three-year patient data and different quantitative analysis. Based on the analysis, a daily usable indicator was created in order to support the decision making in the operations management. By using the selected indicator, the effects of congestion can be acknowledged and the corrective action can also be taken more proactively.

Spatial and temporal variation in fish populations and assemblages in coastal waters of the northern Baltic Proper

The distribution and traits of fish are of interest both ecologically and socio-economically. In this thesis, phenotypic and structural variation in fish populations and assemblages was studied on multiple spatial and temporal scales in shallow coastal areas in the archipelago of the northern Baltic Proper. In Lumparn basin in Åland Islands, the fish assemblage displayed significant seasonal variation in depth zone distribution. The results indicate that investigating both spatial and temporal variation in small scale is crucial for understanding patterns in fish distribution and community structure in large scale. The local population of Eurasian perch Perca fluviatilis L displayed habitat-specific morphological and dietary variation. Perch in the pelagic zone were on average deeper in their body shape than the littoral ones and fed on fish and benthic invertebrates. The results differ from previous studies conducted in freshwater habitats, where the pelagic perch typically are streamlined in body shape and zooplanktivorous. Stable isotopes of carbon and nitrogen differed between perch with different stomach contents, suggesting differentiation of individual diet preferences. In the study areas Lumparn and Ivarskärsfjärden in Åland Islands and Galtfjärden in Swedish east coast, the development in fish assemblages during the 2000’s indicated a general shift towards higher abundances of small-bodied lower-order consumers, especially cyprinids. For European pikeperch Sander lucioperca L., recent declines in adult fish abundances and high mortalities (Z = 1.06–1.16) were observed, which suggests unsustainably high fishing pressure on pikeperch. Based on the results it can be hypothesized that fishing has reduced the abundances of large predatory fish, which together with bottom-up forcing by eutrophication has allowed the lower-order consumer species to increase in abundances. This thesis contributes to the scientific understanding of aquatic ecosystems with new descriptions on morphological and dietary adaptations in perch in brackish water, and on the seasonal variation in small-scale spatial fish distribution. The results also demonstrate anthropogenic effects on coastal fish communities and underline the urgency of further reducing nutrient inputs and regulating fisheries in the Baltic Sea region.