Value added logistical support service: logistics cost structure and performance in the new concept. Part 3

The aim of this study is to present an Activity-Based Costing spreadsheet tool for analyzing the logistics costs. The tool can be used both by customer-companies and logistics service providers. The study discusses the influence of different activity models on costs. Additionally this paper discusses about the logistical performance across the total supply chain This study is carried out using ananalytical research approach and literature material has been used for supplementing the concerned research approach. Cost structure analysis was based on the theory of activity-based management. This study was outlined to spare part logistics in machine-shop industry. The outlines of logistics services and logisticalperformance discussed in this report are based on the new logistics business concept (LMS-concept), which has been presented earlier in the Valssi-project. Oneof the aims of this study is to increase awareness of different activity modelson logistics costs. The report paints an overall picture about the business environment and requirements for the new logistics concept.

Communicating Cost Information to Design Engineers using an Activity-based Costing Method

This paper analyzes the possibilities of integrating cost information and engineering design. Special emphasis is on finding the potential of using the activity-based costing (ABC) method when formulating cost information for the needs of design engineers. This paper suggests that ABC is more useful than the traditional job order costing, but the negative issue is the fact that ABC models become easily too complicated, i.e. expensive to build and maintain, and difficult to use. For engineering design the most suitable elements of ABC are recognizing activities of the company, constructing acitivity chains, identifying resources, activity and cost drivers, as wellas calculating accurate product costs. ABC systems including numerous cost drivers can become complex. Therefore, a comprehensive ABC based cost information system for the use of design engineers should be considered criticaly. Combining the suitable ideas of ABC with engineering oriented thinking could give competentresults.

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.

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.

Cost-effectiveness of early detection of breast cancer in Catalonia (Spain)

Background: Breast cancer (BC) causes more deaths than any other cancer among women in Catalonia. Early detection has contributed to the observed decline in BC mortality. However, there is debate on the optimal screening strategy. We performed an economic evaluation of 20 screening strategies taking into account the cost over time of screening and subsequent medical costs, including diagnostic confirmation, initial treatment, follow-up and advanced care. Methods: We used a probabilistic model to estimate the effect and costs over time of each scenario. The effect was measured as years of life (YL), quality-adjusted life years (QALY), and lives extended (LE). Costs of screening and treatment were obtained from the Early Detection Program and hospital databases of the IMAS-Hospital del Mar in Barcelona. The incremental cost-effectiveness ratio (ICER) was used to compare the relative costs and outcomes of different scenarios. Results: Strategies that start at ages 40 or 45 and end at 69 predominate when the effect is measured as YL or QALYs. Biennial strategies 50-69, 45-69 or annual 45-69, 40-69 and 40-74 were selected as cost-effective for both effect measures (YL or QALYs). The ICER increases considerably when moving from biennial to annual scenarios. Moving from no screening to biennial 50-69 years represented an ICER of 4,469€ per QALY. Conclusions: A reduced number of screening strategies have been selected for consideration by researchers, decision makers and policy planners. Mathematical models are useful to assess the impact and costs of BC screening in a specific geographical area.

Data collection and criticality analysis for cost effective maintenance during the life cycle of a flue gas line

Työn tarkoituksena oli kerätä käyttövarmuustietoa savukaasulinjasta kahdelta suomalaiselta sellutehtaalta niiden käyttöönotosta aina tähän päivään asti. Käyttövarmuustieto koostuu luotettavuustiedoista sekä kunnossapitotiedoista. Kerätyn tiedon avulla on mahdollista kuvata tarkasti laitoksen käyttövarmuutta seuraavilla tunnusluvuilla: suunnittelemattomien häiriöiden lukumäärä ja korjausajat, laitteiden seisokkiaika, vikojen todennäköisyys ja korjaavan kunnossapidon kustannukset suhteessa savukaasulinjan korjaavan kunnossapidon kokonaiskustannuksiin. Käyttövarmuustiedon keräysmetodi on esitelty. Savukaasulinjan kriittisten laitteiden määrittelyyn käytetty metodi on yhdistelmä kyselytutkimuksesta ja muunnellusta vian vaikutus- ja kriittisyysanalyysistä. Laitteiden valitsemiskriteerit lopulliseen kriittisyysanalyysiin päätettiin käyttövarmuustietojen sekä kyselytutkimuksen perusteella. Kriittisten laitteiden määrittämisen tarkoitus on löytää savukaasulinjasta ne laitteet, joiden odottamaton vikaantuminen aiheuttaa vakavimmat seuraukset savukaasulinjan luotettavuuteen, tuotantoon, turvallisuuteen, päästöihin ja kustannuksiin. Tiedon avulla rajoitetut kunnossapidon resurssit voidaan suunnata oikein. Kriittisten laitteiden määrittämisen tuloksena todetaan, että kolme kriittisintä laitetta savukaasulinjassa ovat molemmille sellutehtaille yhteisesti: savukaasupuhaltimet, laahakuljettimet sekä ketjukuljettimet. Käyttövarmuustieto osoittaa, että laitteiden luotettavuus on tehdaskohtaista, mutta periaatteessa samat päälinjat voidaan nähdä suunnittelemattomien vikojen todennäköisyyttä esittävissä kuvissa. Kustannukset, jotka esitetään laitteen suunnittelemattomien kunnossapitokustannusten suhteena savukaasulinjan kokonaiskustannuksiin, noudattelevat hyvin pitkälle luotettavuuskäyrää, joka on laskettu laitteen seisokkiajan suhteena käyttötunteihin. Käyttövarmuustiedon keräys yhdistettynä kriittisten laitteiden määrittämiseen mahdollistavat ennakoivan kunnossapidon oikean kohdistamisen ja ajoittamisen laitteiston elinaikana siten, että luotettavuus- ja kustannustehokkuusvaatimukset saavutetaan.

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.

Cost efficient extractive removal of birch pulp

Tämän diplomityön tarkoituksena oli selvittää kustannustehokkaita keinoja uuteaineiden vähentämiseksi koivusulfaattimassasta. Uuteaineet voivat aiheuttaa ongelmia muodostaessaan saostumia prosessilaitteisiin. Saostumat aiheuttavat tukkeumia ja mittaushäiriöitä, mutta irrotessaan ne myös huonontavat sellun laatua. Lopputuotteeseen joutuessaan ne voivat lisäksi aiheuttaa haju- ja makuhaittoja, joilla on erityistä merkitystä esimerkiksi valmistettaessa elintarvikekartonkeja. Tämä työ tehtiin Stora Enson sellutehtaalla, Enocell Oy:llä, Uimaharjussa. Teoriaosassa käsiteltiin uuteaineiden koostumusta ja niiden aiheuttamia ongelmia sellu– ja paperitehtaissa. Lisäksi koottiin aikaisempien tehdaskokeiden fysikaalisia ja kemiallisia keinoja vähentää koivu-uutetta. Tarkastelualueina olivat puunkäsittely, keitto, pesemö ja valkaisu. Kokeellisessa osassa suoritettiin esikokeita laboratorio- ja tehdasmittakaavassa, jotta saavutettaisiin käytännöllistä tietoa itse lopuksi tehtävää tehdasmittakaavan koetta varten. Laboratoriokokeissa tutkittiin mm. keiton kappaluvun, lisäaineiden ja hartsisaippuan vaikutusta koivu-uutteeseen. Lisäksi suoritettiin myös happo- (A) ja peretikkahappovaiheen (Paa) laboratoriokokeet. Tehdasmittakaavassa tarkasteltiin mm. keiton kappaluvun, pesemön lämpötilan, A-vaiheen, valkaisun peroksidi- ja Paa-vaiheen vaikutusta koivu-uutteeseen. Uutteenpoistotehokkuutta eri menetelmien välillä vertailtiin niin määrällisesti kuin rahallisesti. Uutteenpoistotehokkuudella mitattuna vertailuvaihe oli tehokkain pesemön loppuvaiheessa ja valkaisun alkuvaiheessa. Pesemön loppuvaiheessa uutteenpoistoreduktiot olivat noin 30 % ja valkaisun alkuvaiheessa 40 %. Peroksidivaihe oli tehokkain käytettynä valkaisun loppuvaiheessa noin 40 % reduktiolla. Kustannustehokkuudella mitattuna tehokkaimmaksi osoittautui A-vaihe yhdessä peroksidivaiheen kanssa. Säästöt vertailujaksoon verrattuna olivat noin 0.3 €/ADt. Lisäksi kyseinen yhdistelmä osoittautui hyväksi keinoksi säilyttää uutetaso alle maksimirajan kuitulinja 2:lla, kun kuitulinjalla 1 tuotettiin samanaikaisesti armeeraussellua.

Papaya seedlings growth using a low-cost, automatic watering controller

The study assessed growth and physiological parameters of 'Sunrise Golden' and 'Tainung 01' papaya seedlings grown in 280mL plastic tubes and watered using a low-cost automatic irrigation system adjusted to operate at substrate water tension for starting irrigation (STI) of 3.0, 6.0 or 9.0 kPa. The water depths applied by the dripping system and drainage were monitored during germination and seedling growth. Germination, emergence velocity index (EVI), leaf area, plant height, shoot and root dry weight, stomatal conductance, relative water content (RWC) and relative chlorophyll content (RCC) were evaluated. Soil nutrient levels were determined by electrical conductivity (EC). Water use efficiency (WUE) corresponded to the ratio of plant dry mass to depth of water applied. STI settings did not affect papaya germination or EVI. System configuration to 3.0 and 6.0 kPa STI exhibited the highest drainage and lowest EC and RCC, indicating soil nutrient loss and plant nutrient deficiency. Drainage was greater in tubes planted with the 'Tainung 01' variety, which developed smaller root systems and lower stomatal conductance than 'Sunrise Golden' seedlings. The highest values for shoot dry weight and WEU were obtained at 6.0 kPa STI for 'Sunrise Golden' (0.62 g and 0.69 g L-1) and at 9.0 kPa in 'Tainung 01' (0.35 g and 0.82 g L-1). RWC at 9.0 kPa STI was lower than at 3.0 kPa in both varieties. The results indicate that the low-cost technology developed for irrigation automation is promising. Even so, new studies are needed to evaluate low-flow irrigation systems as well as the nutrient and water needs of different papaya varieties.

Cost Models for Routing and Wavelength Assignment in Wavelength-Division Multiplexing Optical Net

WDM (Wavelength-Division Multiplexing) optiset verkot on tällä hetkellä suosituin tapa isojen määrän tietojen siirtämiseen. Jokaiselle liittymälle määrätään reitin ja aallonpituus joka linkin varten. Tarvittavan reitin ja aallon pituuden löytäminen kutsutaan RWA-ongelmaksi. Tämän työn kuvaa mahdollisia kustannuksen mallein ratkaisuja RWA-ongelmaan. Olemassa on paljon erilaisia optimoinnin tavoitteita. Edellä mainittuja kustannuksen malleja perustuu näillä tavoitteilla. Kustannuksen malleja antavat tehokkaita ratkaisuja ja algoritmeja. The multicommodity malli on käsitelty tässä työssä perusteena RV/A-kustannuksen mallille. Myöskin OB käsitelty heuristisia menetelmiä RWA-ongelman ratkaisuun. Työn loppuosassa käsitellään toteutuksia muutamalle mallille ja erilaisia mahdollisuuksia kustannuksen mallein parantamiseen.

Cost allocation of corporate IT-services

Cost allocation is an inescapable problem in nearly every organization and in nearly every facet of accounting. Within large corporations there are several different types of units, like profit-making business units and non-profit service units. In order to evaluate the performance of the business units and to fund the operations of service units, the expenses of service production need to be allocated to the business units benefiting from the services.The objective of this thesis was to find good and fair allocating factors for the costs of corporate wide IT services. In order to reach this objective, the cost allocation process was studied in general and an overview of cost structure was established. All possible cost driver candidates were mapped and their good and bad properties were weighed. The cost allocation problem was handled separately according to organizational division of corporate IT department: infrastructure, administrative systems, sales system and e-business. The emphasis was on two largest cost groups: infrastructure costs and sales system costs. As a result of the study an allocation model is presented. It contains categorization of the costs, selected cost drivers and cost distributions for the current year.