Item-level life-cycle model for maintenance network – from cost to additional value

The importance of industrial maintenance has been emphasized during the last decades; it is no longer a mere cost item, but one of the mainstays of business. Market conditions have worsened lately, investments in production assets have decreased, and at the same time competition has changed from taking place between companies to competition between networks. Companies have focused on their core functions and outsourced support services, like maintenance, above all to decrease costs. This new phenomenon has led to increasing formation of business networks. As a result, a growing need for new kinds of tools for managing these networks effectively has arisen. Maintenance costs are usually a notable part of the life-cycle costs of an item, and it is important to be able to plan the future maintenance operations for the strategic period of the company or for the whole life-cycle period of the item. This thesis introduces an itemlevel life-cycle model (LCM) for industrial maintenance networks. The term item is used as a common definition for a part, a component, a piece of equipment etc. The constructed LCM is a working tool for a maintenance network (consisting of customer companies that buy maintenance services and various supplier companies). Each network member is able to input their own cost and profit data related to the maintenance services of one item. As a result, the model calculates the net present values of maintenance costs and profits and presents them from the points of view of all the network members. The thesis indicates that previous LCMs for calculating maintenance costs have often been very case-specific, suitable only for the item in question, and they have also been constructed for the needs of a single company, without the network perspective. The developed LCM is a proper tool for the decision making of maintenance services in the network environment; it enables analysing the past and making scenarios for the future, and offers choices between alternative maintenance operations. The LCM is also suitable for small companies in building active networks to offer outsourcing services for large companies. The research introduces also a five-step constructing process for designing a life-cycle costing model in the network environment. This five-step designing process defines model components and structure throughout the iteration and exploitation of user feedback. The same method can be followed to develop other models. The thesis contributes to the literature of value and value elements of maintenance services. It examines the value of maintenance services from the perspective of different maintenance network members and presents established value element lists for the customer and the service provider. These value element lists enable making value visible in the maintenance operations of a networked business. The LCM added with value thinking promotes the notion of maintenance from a “cost maker” towards a “value creator”.

Por que a poupança externa não promove crescimento

Why foreign saving fail to cause growth. The present paper is a formalization of the critique of the growth with foreign savings strategy. Although medium income countries are capital poor, current account deficits (foreign savings), financed either by loans or by foreign direct investments, will not usually increase the rate of capital accumulation or will have little impact on it in so far as current account deficits will be associated with appreciated exchange rates, artificially increased real wages and salaries and high consumption levels. In consequence, the rate of substitution of foreign savings for domestic savings will be relatively high, and the country will get indebted to consume, not to invest and grow. Only when there are large investment opportunities, stimulated by a sizeable difference between the expected profit rate and the long term interest rate, the marginal propensity to consume will get down enough so that the additional income originated from foreign capital flows will be used for investment rather than for consumption. In this special case, the rate of substitution of foreign for domestic savings tend to be small, and foreign savings will contribute positively to growth.

From semi-stagnation to growth in a sino-centric market

According to recent available information, the Brazilian economy may be entering a cycle of sustained growth. The dominant current interpretation points to the progresses made in terms of monetary stability, Balance of Payments and structural reforms. Indeed, without monetary stability and the commercial opening of the economy, investments would not be increasing and credit growth would not be helping the emergence of millions of new consumers. But these achievements should be taken as generally conditioning, rather than actually shaping the new picture. Some unexpected (not rarely positive) consequences of overcoming the long enduring semi-stagnation, the emergence of China as a major player, and its consequences on the necessary re-structuring of the Brazilian industry, seem to be decisive in the present day redefinition of the Brazilian GDP growth potential.

Kohti vesiensuojelun aikaa; veden laadun muutokset eteläisimmällä Saimaalla

Työn tarkoituksena on ollut tutkia vesianalytiikan kehitystä Suomessa, arvioida rutiini-analytiikan luotettavuutta, selvittää eteläisimmän Saimaan jätevesikuormituksen kehitys ja siihen vaikuttaneet tekijät, laatia aikasarjat eräiden tutkimusalueen keskeisten veden laadun seurantapaikkojen veden laadun kehityksestä ja esittää keinoja veden laadun kehityksen kuvaa¬miseksi tiivistämällä suuri havaintomateriaali yksinkertaisiksi tunnusluvuiksi. Työssä käsiteltä¬vä aikajakso alkaa 1900-luvun alusta ja päättyy vuoteen 1998. Tutkimus on osa laajempaa ko¬konaisuutta. Tutkimusalue käsittää Vuoksen vesistön keskusjärven, Saimaan, eteläisimmät osat eli Pien-Saimaan, Suur-Saimaan, Vuoksen niskan ja Haapaveden altaat sekä vesistön purku¬-uoman, Vuoksen virran (ks. kuvat 5.1. ja 5.2.). Veden laatu alueen luonnontilaisilla alueilla on luokiteltavissa osin oligotrofiseksi, osin lievästi dysoligotrofiseksi. Sadan viimeisen vuoden aikana teollinen toiminta on muuttanut sitä voimakkaasti. Vesiensuojeluun on eteläisimmän Saimaan alueella investoitu yli 1,5 miljardia markka viimeisten noin 30 vuoden aikana. Investointien tuloksena kuormitus on laskenut oleellisesti 1960-luvun maksimikuormituksesta. Jätevesien purkuvesistön veden laatu on tänä aikana myös merkittävästi parantunut. Tämä on osoitettu veden laadun seurantatuloksista tehtyjen erilaisten tarkastelujen avulla (aikasarjadiagrammit, tilasto tarkastelut, indeksilukuluokitukset, PCA- ja PLS- ja DPLS- monimuuttujamallinnukset). Nykyisin veden laatu on lähes koko tutkimusalu¬eella vähintään tyydyttävä. Fysikaalis-kemiallisen veden laadun seurannan historia on Suomessa kansainvälisesti ja kansallisesti pitkä, ja Saimaalta voidaan veden laadun kehitystä arvioida luotettavasti 40 vuoden ajalta. Tutkimusmetodiikat vesitutkimusten pioneerimaissa ovat olleet samankaltaisia ja niiden perusteella on laadittu myös eurooppalaisen vedenlaadunseurannan suositukset. Vaikka tulevai¬suudessa vesistöä ja sen tilan kehitystä on tarkasteltava ekologisena kokonaisuutena, ei tätä voida tehdä ilman nykyisen kaltaista monitorointia. Teollisuuden jätevesikuormitus on laskenut neljännesvuosisadan aikana hyvin merkittä¬västi tavalla, joka vielä kymmenkunta vuotta sitten tuntui saavuttamattomalta. Saimaan. kuten muunkin Suomen metsäteollisuuden taso onkin kansainvälisesti korkea ja täyttää jo nyt kuormi¬tuksen suhteen lähes 2000-luvun alun BAT-tekniikan vaatimukset. Veden laatu ei kuitenkaan ole kuormitetuilla alueilla kaikkialla vielä hyvä, joten vesiensuojeluun on edelleen panostettava, kun tavoitteena on vesien hyvä ekologinen tila. Vesistöstä käsin tarkasteltuna hitaasti hajoavan orgaanisen aineen määrän vähentäminen vedestä on oltava seuraavana tavoitteena. Tätä tukee myös BAT-tekniikan tarkastelu.

Michal Kalecki, um pioneiro da teoria econômica do desenvolvimento

Kalecki made important contributions to development economics, which rank him among the founding fathers of this area of our discipline. The objective of this paper is to give an account of his contributions, and in particular of his conception of the peculiarities and the way of functioning of the underdeveloped economies, and of the barriers that limits their capacity for high and sustained long run growth. As most socialist economists of his time, he was skeptic about the possibilities of overcoming underdevelopment under capitalism. However, in contradistinction to other pioneers of development economics, Kalecki did not stress the international forces that hamper development, but put the accent rather in the internal institutions and social and political determinants. In particular, the feudal and semi-feudal conditions in agriculture, the reduced market ensuing from income concentration and widespread monopolization of the economy, and the lack of willingness of entrepreneurs to carry out the necessary investments. Accordingly, his economic policy recommendations emphasized also the domestic aspects involved.

Replacing traditional ERP with EAI - the next generation’s ERP

Organizations often consider investing in a new Enterprise Resource Planning (ERP) system as a way to enhance their business processes, as it allows integrating information used by multiple different departments into a harmonized computing system. The hope of gaining significant business benefits, such as reducing operating costs, is the key reason why organizations have decided to invest in ERP systems since 1990’s. Still, all ERP projects do not end up in success, and deployment of ERP system does not necessarily guarantee the results people were waiting for. This research studies why organizations invest in ERP, but also what downsides ERP projects currently have. Additionally Enterprise Application Integrations (EAI) as next generation’s ERP solutions are studied to challenge and develop traditional ERP. The research questions are: What are the weaknesses in traditional ERP deployment in today’s business? How does the proposed next generation’s ERP answer to these weaknesses? At the beginning of the thesis, as an answer to the first research question, the basics of ERP implementation are introduced with both the pros and cons of investing in ERP. Key concepts such as IS integration and EAI are also studied. Empirical section of the thesis focuses on answering the second research question from the integration approach. A qualitative research is executed by interviewing five experienced IT professionals about EAI benefits, limitations, and problems. The thematic interview and questionnaire follow the presented ERP main elements from literature. The research shows that adopting traditional ERP includes multiple downsides, e.g. inflexibility and requiring big investments in terms of money. To avoid these critical issues, organizations could find a solution from integrations between their current IS. Based on the empirical study a new framework for the next generation’s ERP is created, consisting of a model and a framework that deal with various features regarding IS adoption. With this framework organizations can assess whether they should implement EAI or ERP. The model and framework suggest that there are multiple factors IT managers needs to consider when planning their IT investments, including their current IS, role of IT in the organization, as well as new system’s flexibility, investment level, and number of vendors. The framework created in the thesis encourages IT management to assess holistically their i) organization, ii) its IT, and iii) solution requirements in order to determine what kind of IS solution would suit their needs the best.

Replacing traditional ERP with EAI - the next generation’s ERP

Organizations often consider investing in a new Enterprise Resource Planning (ERP) system as a way to enhance their business processes, as it allows integrating information used by multiple different departments into a harmonized computing system. The hope of gaining significant business benefits, such as reducing operating costs, is the key reason why organizations have decided to invest in ERP systems since 1990’s. Still, all ERP projects do not end up in success, and deployment of ERP system does not necessarily guarantee the results people were waiting for. This research studies why organizations invest in ERP, but also what downsides ERP projects currently have. Additionally Enterprise Application Integrations (EAI) as next generation’s ERP solutions are studied to challenge and develop traditional ERP. The research questions are: What are the weaknesses in traditional ERP deployment in today’s business? How does the proposed next generation’s ERP answer to these weaknesses? At the beginning of the thesis, as an answer to the first research question, the basics of ERP implementation are introduced with both the pros and cons of investing in ERP. Key concepts such as IS integration and EAI are also studied. Empirical section of the thesis focuses on answering the second research question from the integration approach. A qualitative research is executed by interviewing five experienced IT professionals about EAI benefits, limitations, and problems. The thematic interview and questionnaire follow the presented ERP main elements from literature. The research shows that adopting traditional ERP includes multiple downsides, e.g. inflexibility and requiring big investments in terms of money. To avoid these critical issues, organizations could find a solution from integrations between their current IS. Based on the empirical study a new framework for the next generation’s ERP is created, consisting of a model and a framework that deal with various features regarding IS adoption. With this framework organizations can assess whether they should implement EAI or ERP. The model and framework suggest that there are multiple factors IT managers needs to consider when planning their IT investments, including their current IS, role of IT in the organization, as well as new system’s flexibility, investment level, and number of vendors. The framework created in the thesis encourages IT management to assess holistically their i) organization, ii) its IT, and iii) solution requirements in order to determine what kind of IS solution would suit their needs the best.

Investigating the Existence of Business-IT Alignment Trap in Finnish IT Organizations

The overall purpose of this master's thesis is to investigate the existence of business-IT alignment trap in Finnish IT organizations. The alignment trap refers to the inability of IT investments to deliver the expected business benefits. The basis for this investigation is due to the previous knowledge that high level of IT alignment practice with very low efficacy in an organization can lead to alignment trap. The theory which was established on the dimensions of IT-alignment and efficacy of IT as a whole with considerations for cost reduction and revenue growth benefits. This study explored the same dimensions with the previous study but identified additional benefit (profitability). The study was conducted using the Finnish IT barometer data from different IT organizations. A quantitative research method was used in conducting this study which was built on positivist philosophical stance. The empirical data is based on survey data, an excerpt from the Finnish IT barometer data that captured the annual survey results of IT significance to Finnish organizations as evaluated by business and IT professionals. The survey data comprised of 249 respondents and their responses were categorized into high and low IT intensive which form the basis of the statistical analysis conducted. Overall, five analyses were conducted using the variables of cost reductions, revenue growth and profitability in the 2x2 matrix dimensions of IT alignment and efficacy of IT, grouped into alignment trap, maintenance zone, well-oiled IT and IT-enabled growth. The empirical results, revealed a partial existence of alignment trap in Finnish IT organizations. This is due to a very minute number of organizations that were ensnared in the alignment trap zone on the analyses conducted. Although they recorded considerable high performances in terms of revenue growth rate with IT spending below the average companies, their profitability was considered very low. Generally it was observed that Finnish IT organizations with high efficacy of IT practices had good performances, while those with low efficacy of IT experienced low performances, especially in the aspect of profitability, regardless of the degree of IT alignment. The study proposes that organizations should improve on practices that enhance effectiveness of IT more in order for them to realize the full benefits of IT and to avoid alignment trap.

PERFORMANCE ANALYSIS OF A TACTICAL ASSET ALLOCATION – Evidence from the Black–Litterman model based fixed income portfolio

Over time the demand for quantitative portfolio management has increased among financial institutions but there is still a lack of practical tools. In 2008 EDHEC Risk and Asset Management Research Centre conducted a survey of European investment practices. It revealed that the majority of asset or fund management companies, pension funds and institutional investors do not use more sophisticated models to compensate the flaws of the Markowitz mean-variance portfolio optimization. Furthermore, tactical asset allocation managers employ a variety of methods to estimate return and risk of assets, but also need sophisticated portfolio management models to outperform their benchmarks. Recent development in portfolio management suggests that new innovations are slowly gaining ground, but still need to be studied carefully. This thesis tries to provide a practical tactical asset allocation (TAA) application to the Black–Litterman (B–L) approach and unbiased evaluation of B–L models’ qualities. Mean-variance framework, issues related to asset allocation decisions and return forecasting are examined carefully to uncover issues effecting active portfolio management. European fixed income data is employed in an empirical study that tries to reveal whether a B–L model based TAA portfolio is able outperform its strategic benchmark. The tactical asset allocation utilizes Vector Autoregressive (VAR) model to create return forecasts from lagged values of asset classes as well as economic variables. Sample data (31.12.1999–31.12.2012) is divided into two. In-sample data is used for calibrating a strategic portfolio and the out-of-sample period is for testing the tactical portfolio against the strategic benchmark. Results show that B–L model based tactical asset allocation outperforms the benchmark portfolio in terms of risk-adjusted return and mean excess return. The VAR-model is able to pick up the change in investor sentiment and the B–L model adjusts portfolio weights in a controlled manner. TAA portfolio shows promise especially in moderately shifting allocation to more risky assets while market is turning bullish, but without overweighting investments with high beta. Based on findings in thesis, Black–Litterman model offers a good platform for active asset managers to quantify their views on investments and implement their strategies. B–L model shows potential and offers interesting research avenues. However, success of tactical asset allocation is still highly dependent on the quality of input estimates.

Kuivikemarkkinoiden analyysi

Hintakilpailu ja muuttuneet maataloussäädökset aiheuttavat kuivikemarkkinoil-le painetta kehittyä. Yleisimpien kuivikkeiden, kuten turpeen ja puukuivikkei-den, saatavuusongelmat ja hinnannousu antavat mahdollisuuden myös muiden kuivikkeiden menestymiselle. Vuosina 2009-2014 Ekovilla Oy oli mukana karjatalouden kuivikekilpailussa paperisilpusta valmistetulla kuivikkeellaan. Yhteistyö markkinointiyrityksen kanssa pakotti hinnan liian korkeaksi, joka vaikutti negatiivisesti tuotteen ky-syntään. Myös pölyävyysongelma oli olemassa. Markkinoilla uskotaan yhä olevan kysyntää kierrätysmateriaalista valmistetulle kuivikkeelle, mikäli hinta saadaan sopivaksi. Ekovillalla kuivikkeen tuotanto-kalusto, markkinointikanavat sekä logistinen verkosto ovat valmiina. Tämän diplomityön avulla selvitetään, miten markkinoille kannattaisi palata ja mitä tulee huomioida. Tutkimuksessa hyödynnetään niin internetiä kuin aiempien asiakkaiden kokemuksia. Asiakashaastatteluissa mielenkiintoa eko-parsikuivikkeeseen on havaittavissa. Erityisesti, jos tuotteen hintaa saadaan laskettua. Aiemmin asiakkaat olivat pää-tyneet tilamaan Ekovillan kuiviketta pääasiassa tilanteessa, jossa muita kuivikkeita ei saanut. Osalle vastanneista pölyävyys oli niin suuri ongelma, että tuotetta ei voitu käyttää. Mutta myös positiivisia kommentteja käytettävyydestä ja erityisesti imukyvystä mainittiin. Mahdollisuudet markkinoille palaamiseen ovat olemassa, mutta markkinointi tulee olemaan haastavaa. Eräs kehityskohde Ekovillalla on kuivikkeen tarjoaminen lemmikkieläin-markkinoille. Tämä vaatisi panostusta tuotteen lisäkehitykseen sekä laite-investointeja. Markkinat eroavat maatiloista huomattavasti muun muassa pakkauskokojen, jakelukanavien ja hinnoittelun osalta.

Os fluxos de IDE no Brasil nos anos 1990: uma revisão de literatura à luz das transformações em curso

The flows of foreign investments in Brazil starting from the 1990s have called attention due to the magnitude of the invested value, the prevalence of properties acquisitions as a preferential way of carrying out these investments, and for the primacy of the operations involving rivals companies. This article searches for an explanation for the cycle of foreign direct investment flows, which is happening in Brazil. Arguments were reconsidered on the existence of sole assets and the advantages of property and control as a basis for carrying out overseas investments, and to explicit their link with the M&As.

The effects of derivative use on equity fund performance

Investing in mutual funds has become more popular than ever and the amount of money invested in mutual funds registered in Finland has hit its all-time high. Mutual funds provide a relatively low-cost method for private investors to invest in stock market and achieve diversified portfolios. In finance there is always a tradeoff between risk and return, where higher expected returns can usually be achieved only by taking higher risks. Diversifying the portfolio gets rid some of the risk but systematic risk cannot be diversified away. These risks can be managed by hedging the investments with derivatives. The use of derivatives should improve the performance of the portfolios using them compared to the funds that don’t. However, previous studies have shown that the risk exposure and return performance of derivative users does not considerably differ from nonusers. The purpose of this study is to examine how the use of derivatives affects the performance of equity funds. The funds studied were 155 equity funds registered in Finland in 2013. Empirical research was done by studying the derivative use of the funds during a 6-year period between 2008–2013. The performance of the funds was studied quantitatively by using several different performance measures used in mutual fund industry; Sharpe Ratio, Treynor Ratio, Jensen's alpha, Sortino Ratio, M2 and Omega Ratio. The effect of derivative use on funds' performance was studied by using a dummy variable and comparing performance measures of derivative-users and nonusers. The differences in performance measures between the two groups were analyzed with statistical tests. The hypothesis was that funds' derivative use should improve their performance relative to the funds that don't use them. The results of this study are in line with previous studies that state that the use of derivatives does not improve mutual funds' performance. When performance was measured with Jensen's alpha, funds that did not use derivatives performed better than the ones that used them. When measured with other performance measures, the results didn’t differ between two groups.

Política fiscal anticíclica, crise financeira internacional e crescimento econômico no Brasil

This study analyzes the long run equilibrium relationship and causality between economic growth and public expenditure in Brazil covering the period 1980-2008. The empirical results of the Granger causality test in a multivariate framework have shown up the importance of public investments not only to face the adverse effects of the international financial crisis, but also in stimulating the economic growth. Also, the results indicate the need of controlling the growing path of other current expenditure, social security and public debt.

The "hot money" phenomenon in Brazil

Because of its high interest rates, Brazil attracts more and more speculative capital flows, called "hot money", under the form of foreign loans, direct or portfolio investments. Actually, the country is directly involved in a carry-trade strategy that tends to appreciate the real, what penalizes the Brazilian exportations of manufactured products. Moreover, capital inflows are extremely volatile, and their departure, causing a fall in loans granted to the Brazilian private banks, could provoke a dangerous burst of the speculative bubble they have contributed to form in the Brazilian real estate sector.

Bases políticas das transferências intergovernamentais no Brasil (1985-2004)

The politics of intergovernmental transfers in Brazil. This article examines the political economy of public resources distribution in Brazil's federal system in 1985-2004. We propose an empirical exercise to analyze how the country's federal governments deal with the tradeoff between the provision of material wellbeing to sub-national governments (the states in our study) and the pursuit of political support from the latter. To identify the determinants of the transfer of resources from the federal government to the states, a set of economic, political, and institutional variables is econometrically tested. Based upon instrumental variables estimation for panel-data models, our estimates indicate that in Brazil the pursuit of political goals prevails over social equity and economic efficiency criteria: higher levels of per capita transfers are associated with the political makeup of governing coalitions, while larger investments in infrastructure and development by the states are associated with a lower amount of per capita resources transferred to sub-national governments. Our findings also suggest a trend toward the freezing of interregional inequalities in Brazil, and show the relevance of fiscal discipline laws in discouraging the use of the administrative apparatus for electioneering.