Using tools to help cost estimating and pricing: examination of costing model's and cost breakdown's workability and their capability to cooperative work

Tämä diplomityö käsittelee työkaluja, jotka on suunniteltu kustannusten ennakointiin ja hinnan asetantaan. Aluksi on käyty läpi perinteisen ja toimintoperusteisen kustannuslaskennan perusteita. Näiden menetelmien välisiä eroja on tarkasteltu ja toimintoperusteisen kustannuslaskennan paremmin sopivuus nykypäivän yrityksille on perusteltu. Toisena käsitellään hinnoittelu. Hinnan merkitys, hinnoittelumenetelmät ja päätös lopullisesta hinnasta on käyty läpi. Hinnoittelun jälkeen esitellään kustannusjärjestelmät ja kustannusten arviointi. Nämä asiat todistavat, että tarkat kustannusarviot ovat elintärkeitä yritykselle. Tuotteen kustannusarviointi, hinnan asetanta ja tarjoaminen ovat erittäin merkityksellisiä asioita ottaen huomioon koko projektin elinkaaren ja tulevat tuotot. Nykyään on yleistä käyttää työkaluja kustannusarvioinnissa ja joskus myös hinnoittelussa. Työkalujen luotettavuus on tiedettävä, ennenkuin työkalut otetaan käyttöön. Myös työkalujen käyttäjät täytyy perehdyttää hyvin. Muuten yritys todennäköisesti kohtaa odottamattomia ja epämiellyttäviä yllätyksiä.

The development of an information infrastructure for cost estimating in the automotive industry

Työn tavoitteena on luoda yleinen informaatioinfrastruktuuri autoteollisuuden valmistuskustannusten arviointiin. Nykyään tämä kustannusarviointi on laajassa käytössä oleva menetelmä. Se mahdollistaa tuotekustannusten hallitsemisen, mikä lisää autovalmistajien kilpailukykyä. Kustannusarvioinnissa tarvitaan laadukasta tietoa, mutta suoritetussa tutkimuksessa paljastui, että useat seikat haittaavat tätä arviointia. Erityisesti resurssien vähyys, tiedonhankinta ja tiedon luotettavuuden varmentaminen aiheuttavat ongelmia. Nämä seikat ovat johtaneet kokemusperäisen asiantuntemuksen laajaan käyttöön, minkä johdosta erityisesti kokemattomilla kustannusarvioijilla on vaikeuksia ymmärtää kustannusarvioiden tietovaatimuksia. Tämän johdosta tutkimus tuo esiin kokeneiden kustannusarvioijien käyttämiä tietoja ja tietolähteitä päämääränä lisätä kustannusarvioiden ymmärtämistä. Informaatioinfrastruktuuri, joka sisältää tarvittavan tiedon järkevien ja luotettavien kustannusarvioiden luontiin, perustuu tutkimuksen tuloksiin. Infrastruktuuri määrittelee tarvittavan kustannustiedon ja niiden mahdolliset tietolähteet. Lisäksi se selvittää miksi tieto on tarpeellista ja miten tiedon oikeellisuus pitäisi varmentaa. Infrastruktuuria käytetään yhdessä yleisen kustannusarvioprosessimallin kanssa. Tämä integrointi johtaa tarkempiin ja selkeämpiin kustannusarvioihin autoteollisuudessa.

Pitkäaikaisten projektien myyntivaiheen kassavirtaennusteen kehittäminen. Case: Foster Wheeler Energia Oy

Tutkimuksen tavoitteena on kehittää pitkäaikaisten projektien kassavirtaennusteita Foster Wheeler Energia Oy:ssä. Jotta tähän tutkielman pääongelmaan saadaan vastaus, tulee analysoida, mitkä tekijät vaikuttavat kassavirtaennusteiden onnistumiseen ja millaisia kassavirtojen ennustamiseen liittyviä ongelmia Foster Wheeler Energia Oy:ssä on ilmennyt. Tutkielma sisältää sekä teoreettisen että empiirisen osan. Teoriaosassa perehdytään projektitoimintaa ja kassavirtojen ennustamista koskeviin aikaisempiin tutkimuksiin. Teoriaosan pohjalta muodostetaan viitekehys ja joukko oletuksia. Sekä viitekehystä että oletuksia käytetään apuna empiirisen osan analyysissa. Analyysimenetelmä on kvalitatiivinen. Tutkimuksessa käytettävä tutkimusote on toiminta-analyyttinen. Tutkimustulosten mukaan kassavirtojen ennustamista voitaisiin Foster Wheeler Energia Oy:ssä kehittää ensinnäkin muuttamalla henkilöstön asenteita ja toimintatapoja. Muutoksen tarkoituksena on parantaa sekä henkilöstön kustannustietoisuutta että koko projektin etenemisen ajan kestävää yhteistyötä. Toinen keino ennusteiden parantamiseen on ennustamisessa nykyisin käytettävän hinnoitteluohjelman kehittäminen. Toteumatietoja hyväksikäyttävän ohjelman avulla ennusteet voidaan tehdä nopeammin ja tarkemmin kuin aikaisemmin.

Valmistuskustannusten arviointi ja kustannustiedon käyttö valmistusystävällisyyteen tähtäävässä tuotekehityksessä

Työn tarkoituksena oli tutkia menetelmiä koneiden valmistuskustannusten arvioimiseksi ja hyödyntää kustannustietoa tuotekehitysprosessissa. Taloudellisen suunnittelun menetelmäksi valittiin DFMA -menetelmä. DFMA -menetelmä on suunnittelustrategia, jonka tarkoituksena on ottaa huomioon suunniteltavan tuotteen valmistuskustannukset ja valmistettavuus mahdollisimman aikaisessa tuotekehitysprosessin vaiheessa. Työn soveltavassa osassa käsiteltiin Rauten uutta puristinlinjaa, jolle arvioitiin valmistuskustannukset. Jatkokehitys kohdennettiin kustannusten painopistealueisiin kokoonpanossa ja valituille kokoonpanoille tehtiin muutoksia valmistuskustannusten pienentämiseksi. Kehitetyille kokoonpanoille arvioitiin uudet valmistuskustannukset ja puristimen mekaanisissa osissa saatiin valmistuskustannuksia pienennetyksi n. 22,6 %, joka oli n. 8,5 % koko puristinlinjan yhteenlasketuista kokonaiskustannuksista. Valmistuskustannusten arvioiminen koneen jokaista komponenttia kohden todettiin olevan liian työlästä. Arviointityön helpottamiseksi alettiin kehittää kustannusten arviointijärjestelmää, jonka avulla koneen muuttuvat materiaali- ja osto-osista aiheutuvat kustannukset saataisiin arvioiduksi. Materiaali ja osto-osien kustannukset aiheuttavat yleensä suurimman osan koko koneen valmistuskustannuksista, joten muista valmistusvaiheista kuten kokoonpanosta, koneistuksesta jne. aiheutuvat kustannukset voidaan arvioida karkeammin.

Parametrisen kustannusmallin validointi ja implementointi

Parametric cost modeling is a technique, where cost estimating relationships are built to meet products’ parameters. Parameters are directly defined from product features, when it is possible to solve product cost exact before even a single product is manufactured and calculated with general cost accounting. The parametric model can be used in product design, sourcing and comparing product cost of similar products. The model reveals the cost origin more clear than general accounting. The purpose of this thesis was to find out parameters for modeling elevator doors and validate the parameters to meet actual costs. The other target was to simulate cost impact and changes in the cost structure. The results were compared to previous calculations and actual costs and model was tested in new product design. The results of the calculations revealed, that material consumption is the most significant issue in design effectiveness as well as the complexity of the components and structure. To develop the model more research is needed for other continents cost structure and waste calculation principles.

Development of Paperboard Forming Tools with a Focus on Intelligent Manufacturing

Tämä diplomityö käsittelee kartonginmuovaukseen käytettävien puristintyökalujen kehittämistä. Työntavoitteina oli kehittää työkalutekniikan suunnittelua ja valmistusta edullisemmaksi, nopeammaksi ja työkaluja toiminnoiltaan tehokkaammiksi. Työn tuli sisältää myös ohjeet työkalujen suunnittelemiseksi ja valmistamiseksi jatkoa ajatellen. Työn aikana selvitettiin mahdollisia työkalurakennevaihtoehtoja, valmistusmateriaaleja sekä niiden käsittelymenetelmiä ja lastuamista sekä sen tarjoamia mahdollisuuksia valmistusmenetelmänä. Työkalupari suunniteltiin modulaariseksi siten, että uusia työkaluja varten vain osa komponenteista täytyy valmistaa uudelleen, samalla työkalun osien lukumäärää pienennettiin merkittävästi. Valmistusmateriaaliksi valittiin hyvin lastuttava työkaluteräs ja sen koneistaminen tapahtui vaakakaraisessa koneistuskeskuksessa. Työn loppuvaiheessa työkalukokonaisuudelle tehtiin kustannuslaskelma jaoteltuna eri työvaiheille sekä komponenteittain. Työkalu asennettiin puristimeen ja sille suoritettiin käyttötestaus. Työn aikana karttuneen kokemuksen sekä koekäytön perusteella tehtiin jatkokehitysehdotuksia.

Welding time models for cost calculations in the early stages of the design process

It is generally accepted that between 70 and 80% of manufacturing costs can be attributed to design. Nevertheless, it is difficult for the designer to estimate manufacturing costs accurately, especially when alternative constructions are compared at the conceptual design phase, because of the lack of cost information and appropriate tools. In general, previous reports concerning optimisation of a welded structure have used the mass of the product as the basis for the cost comparison. However, it can easily be shown using a simple example that the use of product mass as the sole manufacturing cost estimator is unsatisfactory. This study describes a method of formulating welding time models for cost calculation, and presents the results of the models for particular sections, based on typical costs in Finland. This was achieved by collecting information concerning welded products from different companies. The data included 71 different welded assemblies taken from the mechanical engineering and construction industries. The welded assemblies contained in total 1 589 welded parts, 4 257 separate welds, and a total welded length of 3 188 metres. The data were modelled for statistical calculations, and models of welding time were derived by using linear regression analysis. Themodels were tested by using appropriate statistical methods, and were found to be accurate. General welding time models have been developed, valid for welding in Finland, as well as specific, more accurate models for particular companies. The models are presented in such a form that they can be used easily by a designer, enabling the cost calculation to be automated.

Logging residues from regeneration fellings for biofuel production - a GIS-based availability and supply cost analysis

Finland has large forest fuel resources. However, the use of forest fuels for energy production has been low, except for small-scale use in heating. According to national action plans and programs related to wood energy promotion, the utilization of such resources will be multiplied over the next few years. The most significant part of this growth will be based on the utilization of forest fuels, produced from logging residues of regeneration fellings, in industrial and municipal power and heating plants. Availability of logging residues was analyzed by means of resource and demand approaches in order to identify the most suitable regions with focus on increasing the forest fuel usage. The analysis included availability and supply cost comparisons between power plant sites and resource allocation in a least cost manner, and between a predefined power plant structure under demand and supply constraints. Spatial analysis of worksite factors and regional geographies were carried out using the GIS-model environment via geoprocessing and cartographic modeling tools. According to the results of analyses, the cost competitiveness of forest fuel supply should be improved in order to achieve the designed objectives in the near future. Availability and supply costs of forest fuels varied spatially and were very sensitive to worksite factors and transport distances. According to the site-specific analysis the supply potential between differentlocations can be multifold. However, due to technical and economical reasons ofthe fuel supply and dense power plant infrastructure, the supply potential is limited at plant level. Therefore, the potential and supply cost calculations aredepending on site-specific matters, where regional characteristics of resourcesand infrastructure should be taken into consideration, for example by using a GIS-modeling approach constructed in this study.

Reducing Manufacturing Costs of the Screen Dryer’s Hot Section by Design

In this thesis, the purpose was to find the cost distribution of the screen dryer and the largest cost factors. The hot section of the screen dryer was revealed as the biggest cost factor, so composing new cost efficient solutions were directed to it. DFMA (Design for Manufacture and Assembly) was chosen to help the design process. DFMA is a product design strategy developed for taking manufacturing and assembly costs into account at the early stages of the design process. In the theory part of the thesis, other methods of economical design and tools needed for estimating manufacturing costs are introduced. In the empirical part, the hot section of the screen dryer was divided into sub-assemblies and their manufacturing costs were estimated. The design propositions were directed to the self-manufactured assemblies and parts. The new manufacturing costs were calculated for the developed propositions. Lastly, the most cost efficient solutions were summarized. The savings on the self-manufactured assemblies were about 40 %, which was about 13 % of the combined total costs of the hot section.

Applications of graph transformation in tools for domain-specific modeling languages

The use of domain-specific languages (DSLs) has been proposed as an approach to cost-e ectively develop families of software systems in a restricted application domain. Domain-specific languages in combination with the accumulated knowledge and experience of previous implementations, can in turn be used to generate new applications with unique sets of requirements. For this reason, DSLs are considered to be an important approach for software reuse. However, the toolset supporting a particular domain-specific language is also domain-specific and is per definition not reusable. Therefore, creating and maintaining a DSL requires additional resources that could be even larger than the savings associated with using them. As a solution, di erent tool frameworks have been proposed to simplify and reduce the cost of developments of DSLs. Developers of tool support for DSLs need to instantiate, customize or configure the framework for a particular DSL. There are di erent approaches for this. An approach is to use an application programming interface (API) and to extend the basic framework using an imperative programming language. An example of a tools which is based on this approach is Eclipse GEF. Another approach is to configure the framework using declarative languages that are independent of the underlying framework implementation. We believe this second approach can bring important benefits as this brings focus to specifying what should the tool be like instead of writing a program specifying how the tool achieves this functionality. In this thesis we explore this second approach. We use graph transformation as the basic approach to customize a domain-specific modeling (DSM) tool framework. The contributions of this thesis includes a comparison of di erent approaches for defining, representing and interchanging software modeling languages and models and a tool architecture for an open domain-specific modeling framework that e ciently integrates several model transformation components and visual editors. We also present several specific algorithms and tool components for DSM framework. These include an approach for graph query based on region operators and the star operator and an approach for reconciling models and diagrams after executing model transformation programs. We exemplify our approach with two case studies MICAS and EFCO. In these studies we show how our experimental modeling tool framework has been used to define tool environments for domain-specific languages.

Free Prostate-specific Antigen Forms and Kallikrein-related Peptidase 2: Tools for Prostate Cancer Diagnostics

Prostate-specific antigen (PSA) is a marker that is commonly used in estimating prostate cancer risk. Prostate cancer is usually a slowly progressing disease, which might not cause any symptoms whatsoever. Nevertheless, some cases of cancer are aggressive and need to be treated before they become life-threatening. However, the blood PSA concentration may rise also in benign prostate diseases and using a single total PSA (tPSA) measurement to guide the decision on further examinations leads to many unnecessary biopsies, over-detection, and overtreatment of indolent cancers which would not require treatment. Therefore, there is a need for markers that would better separate cancer from benign disorders, and would also predict cancer aggressiveness. The aim of this study was to evaluate whether intact and nicked forms of free PSA (fPSA-I and fPSA-N) or human kallikrein-related peptidase 2 (hK2) could serve as new tools in estimating prostate cancer risk. First, the immunoassays for fPSA-I and free and total hK2 were optimized so that they would be less prone to assay interference caused by interfering factors present in some blood samples. The optimized assays were shown to work well and were used to study the marker concentrations in the clinical sample panels. The marker levels were measured from preoperative blood samples of prostate cancer patients scheduled for radical prostatectomy. The association of the markers with the cancer stage and grade was studied. It was found that among all tested markers and their combinations especially the ratio of fPSA-N to tPSA and ratio of free PSA (fPSA) to tPSA were associated with both cancer stage and grade. They might be useful in predicting the cancer aggressiveness, but further follow-up studies are necessary to fully evaluate the significance of the markers in this clinical setting. The markers tPSA, fPSA, fPSA-I and hK2 were combined in a statistical model which was previously shown to be able to reduce unnecessary biopsies when applied to large screening cohorts of men with elevated tPSA. The discriminative accuracy of this model was compared to models based on established clinical predictors in reference to biopsy outcome. The kallikrein model and the calculated fPSA-N concentrations (fPSA minus fPSA-I) correlated with the prostate volume and the model, when compared to the clinical models, predicted prostate cancer in biopsy equally well. Hence, the measurement of kallikreins in a blood sample could be used to replace the volume measurement which is time-consuming, needs instrumentation and skilled personnel and is an uncomfortable procedure. Overall, the model could simplify the estimation of prostate cancer risk. Finally, as the fPSA-N seems to be an interesting new marker, a direct immunoassay for measuring fPSA-N concentrations was developed. The analytical performance was acceptable, but the rather complicated assay protocol needs to be improved until it can be used for measuring large sample panels.

Simulation and optimization tools in paper machine concept design

The last decade has shown that the global paper industry needs new processes and products in order to reassert its position in the industry. As the paper markets in Western Europe and North America have stabilized, the competition has tightened. Along with the development of more cost-effective processes and products, new process design methods are also required to break the old molds and create new ideas. This thesis discusses the development of a process design methodology based on simulation and optimization methods. A bi-level optimization problem and a solution procedure for it are formulated and illustrated. Computational models and simulation are used to illustrate the phenomena inside a real process and mathematical optimization is exploited to find out the best process structures and control principles for the process. Dynamic process models are used inside the bi-level optimization problem, which is assumed to be dynamic and multiobjective due to the nature of papermaking processes. The numerical experiments show that the bi-level optimization approach is useful for different kinds of problems related to process design and optimization. Here, the design methodology is applied to a constrained process area of a papermaking line. However, the same methodology is applicable to all types of industrial processes, e.g., the design of biorefiners, because the methodology is totally generalized and can be easily modified.

CTQ process flow development and the impact for cost of quality

Tämä työ tehtiin Kone Industrial Oy:lle Major Projects yksikköön, laatuosastolle. Kone Major Projects yksikkö keskittyy erikoisiin ja suuriin hissi- ja liukuporras projekteihin. Työn tavoitteena oli luoda harmonisoitu prosessi hissikomponenttien laaduntarkkailua varten sekä tarkastella ja vertailla kustannussäästöjä, jota tällä uudella prosessilla voidaan saavuttaa. Tavoitteena oli saavuttaa 80-prosentin kustannussäästöt laatukustannuksissa uuden laatuprosessin avulla. Työn taustana ja tutkimusongelmana ovat lisääntyneet erikoisprojektit ja niiden myötä lisääntynyt laaduntarkkailun tarve. Ongelmana laaduntarkkailussa voitiin pitää harmonisoidun ja selkeän prosessin puuttumista C-prosessikomponenttien valmistuksessa. Lisäksi kehitysprosessin aikana luotiin vanhojen työkalujen pohjalta keskeinen laaduntarkkailutyökalu, CTQ-työkalu. Työssä käsitellään ensin Konetta yhtiönä ja selvitetään Koneen keskeisimmät prosessit työn taustaksi. Teoria osuudessa käsitellään prosessin kehitykseen liittyviä teorioita sekä yleisiä laatukäsitteitä ja esitetään teorioita laadun asemasta nykypäivänä. Lopuksi käsitellään COQ eli laatukustannusten teoriaa ja esitellään teoria PAF-analyysille, jota käytetään työssä laatukustannusten vertailuun case esimerkin avulla. Työssä kuvataan CTQ prosessin luominen alusta loppuun ja case esimerkin avulla testataan uutta CTQ prosessia pilottihankkeessa. Tässä case esimerkissä projektin bracket eli johdekiinnitysklipsi tuotetaan uuden laatuprosessin avulla sekä tehdään kustannusvertailu saman projektin toisen bracketin kanssa, joka on tuotettu ennen uuden laatuprosessin implementoimista. Työn lopputuloksena CTQ prosessi saatiin luotua ja sitä pystyttiin testaamaan käytännössä case esimerkin avulla. Tulosten perusteella voidaan sanoa, että CTQ prosessin käyttö vähentää laatukustannuksia huomattavasti ja helpottaa laadunhallintaa C-prosessikomponenttien tuotannossa.

Validation and Selection of Transportation Cost Drivers with Advanced Methods

In today's logistics environment, there is a tremendous need for accurate cost information and cost allocation. Companies searching for the proper solution often come across with activity-based costing (ABC) or one of its variations which utilizes cost drivers to allocate the costs of activities to cost objects. In order to allocate the costs accurately and reliably, the selection of appropriate cost drivers is essential in order to get the benefits of the costing system. The purpose of this study is to validate the transportation cost drivers of a Finnish wholesaler company and ultimately select the best possible driver alternatives for the company. The use of cost driver combinations as an alternative is also studied. The study is conducted as a part of case company's applied ABC-project using the statistical research as the main research method supported by a theoretical, literature based method. The main research tools featured in the study include simple and multiple regression analyses, which together with the literature and observations based practicality analysis forms the basis for the advanced methods. The results suggest that the most appropriate cost driver alternatives are the delivery drops and internal delivery weight. The possibility of using cost driver combinations is not suggested as their use doesn't provide substantially better results while increasing the measurement costs, complexity and load of use at the same time. The use of internal freight cost drivers is also questionable as the results indicate weakening trend in the cost allocation capabilities towards the end of the period. Therefore more research towards internal freight cost drivers should be conducted before taking them in use.

Cost-efficient virtual machine management : provisioning, admission control, and consolidation

One of the main challenges in Software Engineering is to cope with the transition from an industry based on software as a product to software as a service. The field of Software Engineering should provide the necessary methods and tools to develop and deploy new cost-efficient and scalable digital services. In this thesis, we focus on deployment platforms to ensure cost-efficient scalability of multi-tier web applications and on-demand video transcoding service for different types of load conditions. Infrastructure as a Service (IaaS) clouds provide Virtual Machines (VMs) under the pay-per-use business model. Dynamically provisioning VMs on demand allows service providers to cope with fluctuations on the number of service users. However, VM provisioning must be done carefully, because over-provisioning results in an increased operational cost, while underprovisioning leads to a subpar service. Therefore, our main focus in this thesis is on cost-efficient VM provisioning for multi-tier web applications and on-demand video transcoding. Moreover, to prevent provisioned VMs from becoming overloaded, we augment VM provisioning with an admission control mechanism. Similarly, to ensure efficient use of provisioned VMs, web applications on the under-utilized VMs are consolidated periodically. Thus, the main problem that we address is cost-efficient VM provisioning augmented with server consolidation and admission control on the provisioned VMs. We seek solutions for two types of applications: multi-tier web applications that follow the request-response paradigm and on-demand video transcoding that is based on video streams with soft realtime constraints. Our first contribution is a cost-efficient VM provisioning approach for multi-tier web applications. The proposed approach comprises two subapproaches: a reactive VM provisioning approach called ARVUE and a hybrid reactive-proactive VM provisioning approach called Cost-efficient Resource Allocation for Multiple web applications with Proactive scaling. Our second contribution is a prediction-based VM provisioning approach for on-demand video transcoding in the cloud. Moreover, to prevent virtualized servers from becoming overloaded, the proposed VM provisioning approaches are augmented with admission control approaches. Therefore, our third contribution is a session-based admission control approach for multi-tier web applications called adaptive Admission Control for Virtualized Application Servers. Similarly, the fourth contribution in this thesis is a stream-based admission control and scheduling approach for on-demand video transcoding called Stream-Based Admission Control and Scheduling. Our fifth contribution is a computation and storage trade-o strategy for cost-efficient video transcoding in cloud computing. Finally, the sixth and the last contribution is a web application consolidation approach, which uses Ant Colony System to minimize the under-utilization of the virtualized application servers.