Total Cost of Ownership - Elinkaarilaskennan sovellus

Ostotapahtumassa kiinnitetään usein huomiota hintaan, mutta hankintapäätökseen vaikuttavat myös muutkin kustannukset. Ongelman asiassa aiheuttaa kokonaiskustannusvaikutuksien arvioinnin ja mittauksen haasteellisuus, sekä kunnollisen raportointijärjestelmän puuttuminen. Hankinnan kokonaiskustannusten selvittäminen pitkällä aikavälillä on kuitenkin tärkeää, koska hankintojen osuus yritysten liikevaihdoista on jatkuvassa kasvussa. Työn tarkoituksena oli tarkastella Total cost of ownershipia, eli TCO:ta, elinkaarilaskennan sovellusta. Tarkastelun aluksi työlle luotiin teoreettinen pohja käyttäen hyväksi kirjallisuutta, artikkeleita sekä www-dokumentteja. Teoriaosuus rakentui kustannuslaskennan osalta kustannusten tunnistamisesta, jakamisesta ja kohdistamisesta. TCO:sta luotiin mahdollisimman laaja-alainen teoreettinen kuvaus. Seuraavaksi työssä käsiteltiin TCO:n soveltamista sen perinteisimpiin käyttökohteisiin: taloudellisesti merkittäviin hankintoihin, ulkoistamispäätöksiin, hinnoitteluun sekä toimittajien suorituskyvyn seurantaan ja analysointiin. TCO:n soveltamista käsittelevä osuus päätettiin kotimaisilla esimerkeillä TCO:n soveltamisesta IT-hankintojen apuvälineenä. Työ päätettiin käymällä läpi työtä tehdessä kypsyneet ajatukset sekä johtopäätökset.

Supply chain cost saving potential analysis

Target of this study was to examine the current supply chain with focus on external part and identify the cost potential areas which lie there. The goal was to evaluate the cost save potential and give estimate what would be required in order to realise it. Base data related to study was searched and examined with using company’s enterprise resource planning system. In case feasible two types of scenarios were built in order to describe the scale of save potential. First scenario was theoretical and achieving it would require further investments and second scenario was realistic approach where more limitations were taken into account. The results clearly show that there is high save potential in supply chain costs linked to balance between internal and external operations. Realising of it would require at least minor investments as current internal capacity is not on a level to fully absorb the additional volumes which are needed in order to realise the potential. This study can be used as a basis when starting new projects related to investment needs.

Cost evaluation process for competitors' products

A company’s capability to map out its cost position compared to other market players is important for competitive decision making. One aspect of cost position is direct product cost that illustrates the cost efficiency of a company’s product designs. If a company can evaluate and compare its own and other market players’ direct product costs, it can implement better decisions in product development and management, manufacturing, sourcing, etc. The main objective of this thesis was to develop a cost evaluation process for competitors’ products. This objective includes a process description and an analysis tool for cost evaluations. Additionally, process implementation is discussed as well. The main result of this thesis was a process description consisting of a sixteen steps process and an Excel based analysis tool. Since literature was quite limited in this field, the solution proposal was combined from many different theoretical concepts. It includes influences from reverse engineering, product cost assessment, benchmarking and cost based decision making. This solution proposal will lead to more systematic and standardized cost position analyses and result in better cost transparency in decision making.

Physiological cost of induced resistance in cotton plants at different nitrogen levels

Resistance induction through the use of chemical inducers often results in physiological costs to the plant. In this study, induced resistance in cotton plants was evaluated with regard to physiological costs in a cultivar susceptible to Colletotrichum gossypii var. cephalosporioides (CNPA GO 2002 - 7997). Plants were cultivated in substrates with two levels of nitrogen and received two applications of acibenzolar-S-methyl (ASM), jasmonic acid (JA) and Agro-Mos® (AM) disease resistance inducers. Plant height (H), internodal length (IL), shoot fresh weight (SFW), root fresh weight (RFW), shoot dry weight (SDW) and root dry weight (RDW) were evaluated. The activity of the phenylalanine ammonia lyase (PAL) and peroxidase (POX) was also determined. The plants treated with ASM presented high physiological costs with an accentuated reduction in H, SFW and SDW, whereas those treated with JA exhibited a significant increase in SDW, and did not significantly differ from H and IL. In the potting mix supplemented with nitrogen, all inducers differed from the control treatment regarding to internodal length, whereas only ASM and AM presented a significant difference between one another in the potting mix without the addition of nitrogen. Significant correlations (P=0.05) were found for most of the variables analyzed, with greater correlations observed between SFW and SDW (0.94); IL and H (0.74); SFW and H (0.70); and SDW and H (0.70). ASM induced the least amount of PAL activity, significantly differing from the remaining treatments. Greater POX activity was observed in ASM, which significantly differed from the control. AM and JA, however, presented lower activity than the control with regard to these enzymes, and it was not possible to confirm induction resistance in these two treatments.

Analysis on firm innovation boundaries

Innovation has been widely recognized as an important driver of firm competitiveness, and the firm’s internal research and development (R&D) activities are often considered to have a critical role in innovation activities. Internal R&D is, however, not the source of innovation as firms may tap into knowledge necessary for innovation also through various types of sourcing agreements or by collaborating with other organizations. The objective of this study is to analyze the way firms go about organizing efficiently their innovation boundaries. Within this context, the analysis is focused, firstly, on the relation between innovation boundaries and firm innovation performance and, secondly, on the factors explaining innovation boundary organization. The innovation literature recognizes that the sources of innovation depend on the nature of technology but does not offer a sufficient tool for analyzing innovation boundary options and their efficiency. Thus, this study suggests incorporating insights from transaction cost economics (TCE) complemented with dynamic governance costs and benefits into the analysis. The thesis consists of two parts. The first part introduces the background of the study, research objectives, an overview of the empirical studies, and the general conclusions of the study. The second part is formed of five publications. The overall results firstly indicate that although the relation between firm innovation boundary options is partly industry sector-specific, the firm level search strategies and knowledge transfer capabilities are important for innovation performance independently of the sector. Secondly, the results show that the attributes suggested by TCE alone do not offer a sufficient explanation of innovation boundary selection, especially under conditions of high levels of (radical) uncertainty. Based on the results, the dynamic governance cost and benefit framework complements the static TCE when firm innovation boundaries are scrutinized.

Measuring Cost of Poor Quality in Industrial Electronics

Quality is not only free but it can be a profit maker. Every dollar that is not spent on doing things wrong becomes a dollar right on the bottom line. The main objective of this thesis is to give an answer on how cost of poor quality can be measured theoretically correctly. Different calculation methods for cost of poor quality are presented and discussed in order to give comprehensive picture about measurement process. The second objective is to utilize the knowledge from the literature review and to apply it when creating a method for measuring cost of poor quality in supplier performance rating. Literature review indicates that P-A-F model together with ABC methodology provides a mean for quality cost calculations. These models give an answer what should be measured and how this measurement should be carried out. However, when product or service quality costs are incurred when quality character derivates from target value, then QLF seems to be most appropriate methodology for quality cost calculation. These methodologies were applied when creating a quality cost calculation method for supplier performance ratings.

A decision support system for cost determination in grain storage facility operations

Many research works have being carried out on analyzing grain storage facility costs; however a few of them had taken into account the analysis of factors associated to all pre-processing and storage steps. The objective of this work was to develop a decision support system for determining the grain storage facility costs and utilization fees in grain storage facilities. The data of a CONAB storage facility located in Ponta Grossa - PR, Brazil, was used as input of the system developed to analyze its specific characteristics, such as amount of product received and stored throughout the year, hourly capacity of drying, cleaning, and receiving, and dispatch. By applying the decision support system, it was observed that the reception and expedition costs were exponentially reduced as the turnover rate of the storage increased. The cleaning and drying costs increased linearly with grain initial moisture. The storage cost increased exponentially as the occupancy rate of the storage facility decreased.

Generic Life Cycle Cost Model and Cost-effective Solutions

Life cycle costing (LCC) practices are spreading from military and construction sectors to wider area of industries. Suppliers as well as customers are demanding comprehensive cost knowledge that includes all relevant cost elements through the life cycle of products. The problem of total cost visibility is being acknowledged and the performance of suppliers is evaluated not just by low acquisition costs of their products, but by total value provided through the life time of their offerings. The main purpose of this thesis is to provide better understanding of product cost structure to the case company. Moreover, comprehensive theoretical body serves as a guideline or methodology for further LCC process. Research includes the constructive analysis of LCC related concepts and features as well as overview of life cycle support services in manufacturing industry. The case study aims to review the existing LCC practices within the case company and provide suggestions for improvements. It includes identification of most relevant life cycle cost elements, development of cost breakdown structure and generic cost model for data collection. Moreover, certain cost-effective suggestions are provided as well. This research should support decision making processes, assessment of economic viability of products, financial planning, sales and other processes within the case company.

Development of Cost Estimation with Feedback Information in EPCM Business

Target company of this study is a large machinery company, which is, inter alia, engaged in energy and pulp engineering, procurement and construction management (EPCM) supply business. The main objective of this study was to develop cost estimation of the target company by providing more accurate, reliable and up-to-date information through enterprise resource planning (ERP) system. Another objective was to find cost-effective methods to collect total cost of ownership information to support more informed supplier selection decision making. This study is primarily action-oriented, but also constructive, and it can be divided in two sections: theoretical literature review and empirical study on the abovementioned part of the target company’s business. Development of information collection is, in addition to literature review, based on nearly 30 qualitative interviews of employees at various organizational units, functions and levels at the target company. At the core of development was to make initial data more accurate, reliable and available, a necessary prerequisite for informed use of the information. Certain development suggestions and paths were presented in order to regain confidence in ERP system as information source by reorganizing work breakdown structure and by complementing mere cost information with quantitative, technical and scope information. Several methods to use the information ever more effectively were also discussed. While implementation of the development suggestions outreached the scope of this study, it was forwarded in test environment and interest groups.

The cost of excessive postoperative use of antimicrobials: the context of a public hospital

OBJECTIVE: To evaluate the improper use of antimicrobials during the postoperative period and its economic impact.METHODS: We conducted a prospective cohort study by collecting data from medical records of 237 patients operated on between 01/11/08 and 31/12/08.RESULTS: from the 237 patients with the information collected, 217 (91.56%) received antimicrobials. During the postoperative period, 125 (57.7%) patients received more than two antimicrobials. On average, 1.7 ± 0.6 antimicrobials were prescribed to patients, the most commonly prescribed antibiotic being cephalothin, in 41.5% (154) of cases. The direct cost of antimicrobial therapy accounted for 63.78% of all drug therapy, this large percentage being attributed in part to the extended antimicrobial prophylaxis. In the case of clean operations, where there was a mean duration of 5.2 days of antibiotics, antimicrobials represented 44.3% of the total therapy cost.CONCLUSION: The data illustrate the impact of overuse of antimicrobials, with questionable indications, creating situations that compromise patient safety and increasing costs in the assessed hospital.