Cost Models for MMC Manufacturing Processes

Science.gov (United States)

Elzey, Dana M.; Wadley, Haydn N. G.

1996-01-01

Processes for the manufacture of advanced metal matrix composites are rapidly approaching maturity in the research laboratory and there is growing interest in their transition to industrial production. However, research conducted to date has almost exclusively focused on overcoming the technical barriers to producing high-quality material and little attention has been given to the economical feasibility of these laboratory approaches and process cost issues. A quantitative cost modeling (QCM) approach was developed to address these issues. QCM are cost analysis tools based on predictive process models relating process conditions to the attributes of the final product. An important attribute, of the QCM approach is the ability to predict the sensitivity of material production costs to product quality and to quantitatively explore trade-offs between cost and quality. Applications of the cost models allow more efficient direction of future MMC process technology development and a more accurate assessment of MMC market potential. Cost models were developed for two state-of-the art metal matrix composite (MMC) manufacturing processes: tape casting and plasma spray deposition. Quality and Cost models are presented for both processes and the resulting predicted quality-cost curves are presented and discussed.

U3O8 production cost analysis study. Sandstone deposit mine model EA-730, Volume 1

International Nuclear Information System (INIS)

1978-08-01

Objective was the development and testing of a model for estimating the production cost of conventional uranium mining. The model used evolved from a base case underground mine of 1000 tons per day output at a nominal depth of 900 feet, and from base-case open pit mines of 2000 tons per day output at 30-, 120-, and 240-foot depths. In addition, an alternate production method employing heap leaching was partially investigated, to be merged with similar work performed by another contractor. The model was internally structured into component submodels capable of reflecting the contributory factors which aggregate into the computed production cost. A financial submodel based on last-quarter 1976 prices used conventional accounting practices to generate a cash flow and profit-and-loss record over the mine life. From this a selling price was obtained based on a desired discounted cash flow return on equity. This submodel is also capable of accepting input inflation rates so that costs in current dollars for future years can be estimated. A Monte Carlo method of the analysis of variance was applied to 50 model runs to obtain a statistical estimate for the expected variance in production cost

Valuing productivity costs in a changing macroeconomic environment: the estimation of colorectal cancer productivity costs using the friction cost approach.

Science.gov (United States)

Hanly, Paul; Koopmanschap, Marc; Sharp, Linda

2016-06-01

The friction cost approach (FCA) has been proposed as an alternative to the human capital approach for productivity cost valuation. However, FCA estimates are context dependent and influenced by extant macroeconomic conditions. We applied the FCA to estimate colorectal cancer labor productivity costs and assessed the impact of a changing macroeconomic environment on these estimates. Data from colorectal cancer survivors (n = 159) derived from a postal survey undertaken in Ireland March 2010 to January 2011 were combined with national wage data, population-level survival data, and occupation-specific friction periods to calculate temporary and permanent disability, and premature mortality costs using the FCA. The effects of changing labor market conditions between 2006 and 2013 on the friction period were modeled in scenario analyses. Costs were valued in 2008 euros. In the base-case, the total FCA per-person productivity cost for incident colorectal cancer patients of working age at diagnosis was €8543. In scenario 1 (a 2.2 % increase in unemployment), the fall in the friction period caused total productivity costs to decrease by up to 18 % compared to base-case estimates. In scenario 2 (a 9.2 % increase in unemployment), the largest decrease in productivity cost was up to 65 %. Adjusting for the vacancy rate reduced the effect of unemployment on the cost results. The friction period used in calculating labor productivity costs greatly affects the derived estimates; this friction period requires reassessment following changes in labor market conditions. The influence of changes in macroeconomic conditions on FCA-derived cost estimates may be substantial.

DATA MINING METHODOLOGY FOR DETERMINING THE OPTIMAL MODEL OF COST PREDICTION IN SHIP INTERIM PRODUCT ASSEMBLY

Directory of Open Access Journals (Sweden)

Damir Kolich

2016-03-01

Full Text Available In order to accurately predict costs of the thousands of interim products that are assembled in shipyards, it is necessary to use skilled engineers to develop detailed Gantt charts for each interim product separately which takes many hours. It is helpful to develop a prediction tool to estimate the cost of interim products accurately and quickly without the need for skilled engineers. This will drive down shipyard costs and improve competitiveness. Data mining is used extensively for developing prediction models in other industries. Since ships consist of thousands of interim products, it is logical to develop a data mining methodology for a shipyard or any other manufacturing industry where interim products are produced. The methodology involves analysis of existing interim products and data collection. Pre-processing and principal component analysis is done to make the data “user-friendly” for later prediction processing and the development of both accurate and robust models. The support vector machine is demonstrated as the better model when there are a lower number of tuples. However as the number of tuples is increased to over 10000, then the artificial neural network model is recommended.

Time Domain Partitioning of Electricity Production Cost Simulations

Energy Technology Data Exchange (ETDEWEB)

Barrows, C. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Hummon, M. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Jones, W. [National Renewable Energy Lab. (NREL), Golden, CO (United States); Hale, E. [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2014-01-01

Production cost models are often used for planning by simulating power system operations over long time horizons. The simulation of a day-ahead energy market can take several weeks to compute. Tractability improvements are often made through model simplifications, such as: reductions in transmission modeling detail, relaxation of commitment variable integrality, reductions in cost modeling detail, etc. One common simplification is to partition the simulation horizon so that weekly or monthly horizons can be simulated in parallel. However, horizon partitions are often executed with overlap periods of arbitrary and sometimes zero length. We calculate the time domain persistence of historical unit commitment decisions to inform time domain partitioning of production cost models. The results are implemented using PLEXOS production cost modeling software in an HPC environment to improve the computation time of simulations while maintaining solution integrity.

Transaction costs and social networks in productivity measurement

DEFF Research Database (Denmark)

Henningsen, Geraldine; Henningsen, Arne; Henning, Christian H. C. A.

2015-01-01

. Hence, both the absolute productivity measures and, more importantly, the productivity ranking will be distorted. A major driver of transaction costs is poor access to information and contract enforcement assistance. Social networks often catalyse information exchange as well as generate trust...... and support. Hence, we use measures of a firm’s access to social networks as a proxy for the transaction costs the firm faces. We develop a microeconomic production model that takes into account transaction costs and networks. Using a data set of 384 Polish farms, we empirically estimate this model...... and compare different parametric, semiparametric, and nonparametric model specifications. Our results generally support our hypothesis. Especially, large trading networks and dense household networks have a positive influence on a farm’s productivity. Furthermore, our results indicate that transaction costs...

The Integration of Production-Distribution on Newspapers Supply Chain for Cost Minimization using Analytic Models: Case Study

Science.gov (United States)

Febriana Aqidawati, Era; Sutopo, Wahyudi; Hisjam, Muh.

2018-03-01

Newspapers are products with special characteristics which are perishable, have a shorter range of time between the production and distribution, zero inventory, and decreasing sales value along with increasing in time. Generally, the problem of production and distribution in the paper supply chain is the integration of production planning and distribution to minimize the total cost. The approach used in this article to solve the problem is using an analytical model. In this article, several parameters and constraints have been considered in the calculation of the total cost of the integration of production and distribution of newspapers during the determined time horizon. This model can be used by production and marketing managers as decision support in determining the optimal quantity of production and distribution in order to obtain minimum cost so that company's competitiveness level can be increased.

Lamb Production Costs: Analyses of Composition and Elasticities Analysis of Lamb Production Costs

Directory of Open Access Journals (Sweden)

C. Raineri

2015-08-01

Full Text Available Since lamb is a commodity, producers cannot control the price of the product they sell. Therefore, managing production costs is a necessity. We explored the study of elasticities as a tool for basing decision-making in sheep production, and aimed at investigating the composition and elasticities of lamb production costs, and their influence on the performance of the activity. A representative sheep production farm, designed in a panel meeting, was the base for calculation of lamb production cost. We then performed studies of: i costs composition, and ii cost elasticities for prices of inputs and for zootechnical indicators. Variable costs represented 64.15% of total cost, while 21.66% were represented by operational fixed costs, and 14.19% by the income of the factors. As for elasticities to input prices, the opportunity cost of land was the item to which production cost was more sensitive: a 1% increase in its price would cause a 0.2666% increase in lamb cost. Meanwhile, the impact of increasing any technical indicator was significantly higher than the impact of rising input prices. A 1% increase in weight at slaughter, for example, would reduce total cost in 0.91%. The greatest obstacle to economic viability of sheep production under the observed conditions is low technical efficiency. Increased production costs are more related to deficient zootechnical indexes than to high expenses.

Estimating the cost of production stoppage

Science.gov (United States)

Delionback, L. M.

1979-01-01

Estimation model considers learning curve quantities, and time of break to forecast losses due to break in production schedule. Major parameters capable of predicting costs are number of units made prior to production sequence, length of production break, and slope of learning curve produced prior to break.

Low-cost production of solar-cell panels

Science.gov (United States)

Bickler, D. B.; Gallagher, B. D.; Sanchez, L. E.

1980-01-01

Large-scale production model combines most modern manufacturing techniques to produce silicon-solar-cell panels of low costs by 1982. Model proposes facility capable of operating around the clock with annual production capacity of 20 W of solar cell panels.

Waste management facilities cost information: System cost model product description. Revision 2

International Nuclear Information System (INIS)

Lundeen, A.S.; Hsu, K.M.; Shropshire, D.E.

1996-02-01

In May of 1994, Lockheed Idaho Technologies Company (LITCO) in Idaho Falls, Idaho and subcontractors developed the System Cost Model (SCM) application. The SCM estimates life-cycle costs of the entire US Department of Energy (DOE) complex for designing; constructing; operating; and decommissioning treatment, storage, and disposal (TSD) facilities for mixed low-level, low-level, transuranic, and mixed transuranic waste. The SCM uses parametric cost functions to estimate life-cycle costs for various treatment, storage, and disposal modules which reflect planned and existing facilities at DOE installations. In addition, SCM can model new facilities based on capacity needs over the program life cycle. The SCM also provides transportation costs for DOE wastes. Transportation costs are provided for truck and rail and include transport of contact-handled, remote-handled, and alpha (transuranic) wastes. The user can provide input data (default data is included in the SCM) including the volume and nature of waste to be managed, the time period over which the waste is to be managed, and the configuration of the waste management complex (i.e., where each installation's generated waste will be treated, stored, and disposed). Then the SCM uses parametric cost equations to estimate the costs of pre-operations (designing), construction costs, operation management, and decommissioning these waste management facilities

Productivity and Cost Comparison of Two Different-Sized Skidders

Science.gov (United States)

John Klepac; Robert B. Rummer

2000-01-01

Productivity and cost of two skidders, Timberjack models 460 and 660, were evaluated while operatin in a loblolly pine plantation performin a clearcut harvest in the Southeastern US. Productivity without delimbing was 46.7 tonnes per PMH for the model 460 and 51.7 tonnes per PMH for the model 660. Cost per tonne was $1.70 for the model 460 and $1.90 for the model 660....

Product Costing in FMT: Comparing Deterministic and Stochastic Models Using Computer-Based Simulation for an Actual Case Study

DEFF Research Database (Denmark)

Nielsen, Steen

2000-01-01

This paper expands the traditional product costing technique be including a stochastic form in a complex production process for product costing. The stochastic phenomenon in flesbile manufacturing technologies is seen as an important phenomenon that companies try to decreas og eliminate. DFM has...... been used for evaluating the appropriateness of the firm's production capability. In this paper a simulation model is developed to analyze the relevant cost behaviour with respect to DFM and to develop a more streamlined process in the layout of the manufacturing process....

Good Manufacturing Practices (GMP) manufacturing of advanced therapy medicinal products: a novel tailored model for optimizing performance and estimating costs.

Science.gov (United States)

Abou-El-Enein, Mohamed; Römhild, Andy; Kaiser, Daniel; Beier, Carola; Bauer, Gerhard; Volk, Hans-Dieter; Reinke, Petra

2013-03-01

Advanced therapy medicinal products (ATMP) have gained considerable attention in academia due to their therapeutic potential. Good Manufacturing Practice (GMP) principles ensure the quality and sterility of manufacturing these products. We developed a model for estimating the manufacturing costs of cell therapy products and optimizing the performance of academic GMP-facilities. The "Clean-Room Technology Assessment Technique" (CTAT) was tested prospectively in the GMP facility of BCRT, Berlin, Germany, then retrospectively in the GMP facility of the University of California-Davis, California, USA. CTAT is a two-level model: level one identifies operational (core) processes and measures their fixed costs; level two identifies production (supporting) processes and measures their variable costs. The model comprises several tools to measure and optimize performance of these processes. Manufacturing costs were itemized using adjusted micro-costing system. CTAT identified GMP activities with strong correlation to the manufacturing process of cell-based products. Building best practice standards allowed for performance improvement and elimination of human errors. The model also demonstrated the unidirectional dependencies that may exist among the core GMP activities. When compared to traditional business models, the CTAT assessment resulted in a more accurate allocation of annual expenses. The estimated expenses were used to set a fee structure for both GMP facilities. A mathematical equation was also developed to provide the final product cost. CTAT can be a useful tool in estimating accurate costs for the ATMPs manufactured in an optimized GMP process. These estimates are useful when analyzing the cost-effectiveness of these novel interventions. Copyright © 2013 International Society for Cellular Therapy. Published by Elsevier Inc. All rights reserved.

A model for optimizing the production of pharmaceutical products

Directory of Open Access Journals (Sweden)

Nevena Gospodinova

2017-05-01

Full Text Available The problem associated with the optimal production planning is especially relevant in modern industrial enterprises. The most commonly used optimality criteria in this context are: maximizing the total profit; minimizing the cost per unit of production; maximizing the capacity utilization; minimizing the total production costs. This article aims to explore the possibility for optimizing the production of pharmaceutical products through the construction of a mathematical model that can be viewed in two ways – as a single-product model and a multi-product model. As an optimality criterion it is set the minimization of the cost per unit of production for a given planning period. The author proposes an analytical method for solving the nonlinear optimization problem. An optimal production plan of Tylosin tartrate is found using the single-product model.

The productivity and cost-efficiency of models for involving nurse practitioners in primary care: a perspective from queueing analysis.

Science.gov (United States)

Liu, Nan; D'Aunno, Thomas

2012-04-01

To develop simple stylized models for evaluating the productivity and cost-efficiencies of different practice models to involve nurse practitioners (NPs) in primary care, and in particular to generate insights on what affects the performance of these models and how. The productivity of a practice model is defined as the maximum number of patients that can be accounted for by the model under a given timeliness-to-care requirement; cost-efficiency is measured by the corresponding annual cost per patient in that model. Appropriate queueing analysis is conducted to generate formulas and values for these two performance measures. Model parameters for the analysis are extracted from the previous literature and survey reports. Sensitivity analysis is conducted to investigate the model performance under different scenarios and to verify the robustness of findings. Employing an NP, whose salary is usually lower than a primary care physician, may not be cost-efficient, in particular when the NP's capacity is underutilized. Besides provider service rates, workload allocation among providers is one of the most important determinants for the cost-efficiency of a practice model involving NPs. Capacity pooling among providers could be a helpful strategy to improve efficiency in care delivery. The productivity and cost-efficiency of a practice model depend heavily on how providers organize their work and a variety of other factors related to the practice environment. Queueing theory provides useful tools to take into account these factors in making strategic decisions on staffing and panel size selection for a practice model. © Health Research and Educational Trust.

Comparison of fuel production costs for future transportation

DEFF Research Database (Denmark)

Ridjan, Iva; Mathiesen, Brian Vad; Connolly, David

The purpose of this poster is to provide an overview of fuel production costs for two types of synthetic fuels – methanol and methane, along with comparable costs for first and second generation biodiesel, two types of second generation bioethanol, and biogas. The model analysed is a 100% renewable...... scenario of Denmark for 2050, where the data for the transport sector has been changed to estimate the fuel production costs for eight different fuel pathways....

On the Inclusion of Energy-Shifting Demand Response in Production Cost Models: Methodology and a Case Study

Energy Technology Data Exchange (ETDEWEB)

O' Connell, Niamh [Technical Univ. of Denmark, Lyngby (Denmark); Hale, Elaine [National Renewable Energy Lab. (NREL), Golden, CO (United States); Doebber, Ian [National Renewable Energy Lab. (NREL), Golden, CO (United States); Jorgenson, Jennie [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2015-07-20

In the context of future power system requirements for additional flexibility, demand response (DR) is an attractive potential resource. Its proponents widely laud its prospective benefits, which include enabling higher penetrations of variable renewable generation at lower cost than alternative storage technologies, and improving economic efficiency. In practice, DR from the commercial and residential sectors is largely an emerging, not a mature, resource, and its actual costs and benefits need to be studied to determine promising combinations of physical DR resource, enabling controls and communications, power system characteristics, regulatory environments, market structures, and business models. The work described in this report focuses on the enablement of such analysis from the production cost modeling perspective. In particular, we contribute a bottom-up methodology for modeling load-shifting DR in production cost models. The resulting model is sufficiently detailed to reflect the physical characteristics and constraints of the underlying flexible load, and includes the possibility of capturing diurnal and seasonal variations in the resource. Nonetheless, the model is of low complexity and thus suitable for inclusion in conventional unit commitment and market clearing algorithms. The ability to simulate DR as an operational resource on a power system over a year facilitates an assessment of its time-varying value to the power system.

Manufacturing Cost Levelization Model – A User’s Guide

Energy Technology Data Exchange (ETDEWEB)

Morrow, William R. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Shehabi, Arman [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Smith, Sarah Josephine [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

2015-08-01

The Manufacturing Cost Levelization Model is a cost-performance techno-economic model that estimates total large-scale manufacturing costs for necessary to produce a given product. It is designed to provide production cost estimates for technology researchers to help guide technology research and development towards an eventual cost-effective product. The model presented in this user’s guide is generic and can be tailored to the manufacturing of any product, including the generation of electricity (as a product). This flexibility, however, requires the user to develop the processes and process efficiencies that represents a full-scale manufacturing facility. The generic model is comprised of several modules that estimate variable costs (material, labor, and operating), fixed costs (capital & maintenance), financing structures (debt and equity financing), and tax implications (taxable income after equipment and building depreciation, debt interest payments, and expenses) of a notional manufacturing plant. A cash-flow method is used to estimate a selling price necessary for the manufacturing plant to recover its total cost of production. A levelized unit sales price ($ per unit of product) is determined by dividing the net-present value of the manufacturing plant’s expenses ($) by the net present value of its product output. A user defined production schedule drives the cash-flow method that determines the levelized unit price. In addition, an analyst can increase the levelized unit price to include a gross profit margin to estimate a product sales price. This model allows an analyst to understand the effect that any input variables could have on the cost of manufacturing a product. In addition, the tool is able to perform sensitivity analysis, which can be used to identify the key variables and assumptions that have the greatest influence on the levelized costs. This component is intended to help technology researchers focus their research attention on tasks

A medium term bulk production cost model based on decomposition techniques

Energy Technology Data Exchange (ETDEWEB)

Ramos, A.; Munoz, L. [Univ. Pontificia Comillas, Madrid (Spain). Inst. de Investigacion Tecnologica; Martinez-Corcoles, F.; Martin-Corrochano, V. [IBERDROLA, Madrid (Spain)

1995-11-01

This model provides the minimum variable cost subject to operating constraints (generation, transmission and fuel constraints). Generation constraints include power reserve margin with respect to the system peak load, first Kirchhoff`s law at each node, hydro energy scheduling, maintenance scheduling, and generation limitations. Transmission constraints cover the second Kirchhoff`s law and transmission limitations. The generation and transmission economic dispatch is approximated by the linearized (also called DC) load flow. Network losses are included as a non linear approximation. Fuel constraints include minimum consumption quotas and fuel scheduling for domestic coal thermal plants. This production costing problem is formulated as a large-scale non linear optimization problem solved by generalized Benders decomposition method. Master problem determines the inter-period decisions, i.e., maintenance, fuel and hydro scheduling, and each subproblem solves the intra-period decisions, i.e., generation and transmission economic dispatch for one period. The model has been implemented in GAMS, a mathematical programming language. An application to the large-scale Spanish electric power system is presented. 11 refs

Designing Cost-Competitive Technology Products through Cost Management

NARCIS (Netherlands)

Davila, T.; Wouters, Marc

2004-01-01

SYNOPSIS: As manufacturing innovations spread throughout leading organizations, product development becomes a more important source of competitive advantage. Within product development, cost management receives increasing attention. To date, cost management in new product development focuses

Fixed export costs and multi-product firms

NARCIS (Netherlands)

Creusen, H.; Smeets, R.

2011-01-01

This paper has two aims. First, we uncover some salient components of fixed export costs, which play a crucial role in recent heterogeneous firms models of international trade. Second, we investigate whether the importance of these fixed export costs varies with the size of a firms export product

On the Inclusion of Energy-Shifting Demand Response in Production Cost Models: Methodology and a Case Study

DEFF Research Database (Denmark)

O'Connell, Niamh; Hale, Elaine; Doebber, Ian

and communications, power system characteristics, regulatory environments, market structures, and business models. The work described in this report focuses on the enablement of such analysis from the production cost modeling perspective. In particular, we contribute a bottom-up methodology for modeling load...

Allocation base of general production costs as optimization of prime costs

Directory of Open Access Journals (Sweden)

Levytska I.O.

2017-03-01

Full Text Available Qualified management aimed at optimizing financial results is the key factor in today's society. Effective management decisions depend on the necessary information about the costs of production process in all its aspects – their structure, types, accounting policies of reflecting costs. General production costs, the so-called indirect costs that are not directly related to the production process, but provide its functioning in terms of supporting structural divisions and create the necessary conditions of production, play a significant role in calculating prime costs of goods (works, services. However, the accurate estimate of prime costs of goods (works, services should be determined with the value of indirect costs (in other words, general production costs, and properly determined with the base of their allocation. The choice of allocation base of general production costs is the significant moment, depending on the nature of business, which must guarantee fair distribution regarding to the largest share of direct expenses in the total structure of production costs. The study finds the essence of general production costs based on the analysis of key definitions of leading Ukrainian economists. The optimal allocation approach of general production costs is to calculate these costs as direct production costs within each subsidiary division (department separately without selecting a base as the main one to the their total amount.

Multi-objective optimization approach for cost management during product design at the conceptual phase

Science.gov (United States)

Durga Prasad, K. G.; Venkata Subbaiah, K.; Narayana Rao, K.

2014-03-01

The effective cost management during the conceptual design phase of a product is essential to develop a product with minimum cost and desired quality. The integration of the methodologies of quality function deployment (QFD), value engineering (VE) and target costing (TC) could be applied to the continuous improvement of any product during product development. To optimize customer satisfaction and total cost of a product, a mathematical model is established in this paper. This model integrates QFD, VE and TC under multi-objective optimization frame work. A case study on domestic refrigerator is presented to show the performance of the proposed model. Goal programming is adopted to attain the goals of maximum customer satisfaction and minimum cost of the product.

APT cost scaling: Preliminary indications from a Parametric Costing Model (PCM)

International Nuclear Information System (INIS)

Krakowski, R.A.

1995-01-01

A Parametric Costing Model has been created and evaluate as a first step in quantitatively understanding important design options for the Accelerator Production of Tritium (APT) concept. This model couples key economic and technical elements of APT in a two-parameter search of beam energy and beam power that minimizes costs within a range of operating constraints. The costing and engineering depth of the Parametric Costing Model is minimal at the present open-quotes entry levelclose quotes, and is intended only to demonstrate a potential for a more-detailed, cost-based integrating design tool. After describing the present basis of the Parametric Costing Model and giving an example of a single parametric scaling run derived therefrom, the impacts of choices related to resistive versus superconducting accelerator structures and cost of electricity versus plant availability (open-quotes load curveclose quotes) are reported. Areas of further development and application are suggested

Process Cost Modeling for Multi-Disciplinary Design Optimization

Science.gov (United States)

Bao, Han P.; Freeman, William (Technical Monitor)

2002-01-01

For early design concepts, the conventional approach to cost is normally some kind of parametric weight-based cost model. There is now ample evidence that this approach can be misleading and inaccurate. By the nature of its development, a parametric cost model requires historical data and is valid only if the new design is analogous to those for which the model was derived. Advanced aerospace vehicles have no historical production data and are nowhere near the vehicles of the past. Using an existing weight-based cost model would only lead to errors and distortions of the true production cost. This report outlines the development of a process-based cost model in which the physical elements of the vehicle are costed according to a first-order dynamics model. This theoretical cost model, first advocated by early work at MIT, has been expanded to cover the basic structures of an advanced aerospace vehicle. Elemental costs based on the geometry of the design can be summed up to provide an overall estimation of the total production cost for a design configuration. This capability to directly link any design configuration to realistic cost estimation is a key requirement for high payoff MDO problems. Another important consideration in this report is the handling of part or product complexity. Here the concept of cost modulus is introduced to take into account variability due to different materials, sizes, shapes, precision of fabrication, and equipment requirements. The most important implication of the development of the proposed process-based cost model is that different design configurations can now be quickly related to their cost estimates in a seamless calculation process easily implemented on any spreadsheet tool. In successive sections, the report addresses the issues of cost modeling as follows. First, an introduction is presented to provide the background for the research work. Next, a quick review of cost estimation techniques is made with the intention to

Minimizing activated carbons production cost

International Nuclear Information System (INIS)

Stavropoulos, G.G.; Zabaniotou, A.A.

2009-01-01

A detailed economic evaluation of activated carbons production process from various raw materials is undertaken using the conventional economic indices (ROI, POT, and NPV). The fundamental factors that affect production cost were taken into account. It is concluded that for an attractive investment in activated carbons production one should select the raw material with the highest product yield, adopt a chemical activation production scheme and should base product price on product-surface area (or more generally on product adsorption capacity for the adsorbate in consideration). A raw material that well meets the above-mentioned criteria is petroleum coke but others are also promising (charcoals, and carbon black). Production cost then can be optimized by determining its minimum value of cost that results from the intercept between the curves of plant capacity and raw material cost - if any. Taking into account the complexity of such a techno-economic analysis, a useful suggestion could be to start the evaluations from a plant capacity corresponding to the break-even point, i. e. the capacity at which income equals production cost. (author)

Production cost methods and data

Science.gov (United States)

Jeffe, R. E.; Fujita, T.

1975-01-01

The general gas cost equation for utility financing is presented. Modifications and assumptions made in order to apply the cost equation to hydrogen production are described. Cost data are given for various methods of hydrogen production. The cost matrix procedure is briefly discussed.

RECTIFIED ETHANOL PRODUCTION COST ANALYSIS

Directory of Open Access Journals (Sweden)

Nikola J Budimir

2011-01-01

Full Text Available This paper deals with the impact of the most important factors of the total production costs in bioethanol production. The most influential factors are: total investment costs, price of raw materials (price of biomass, enzymes, yeast, and energy costs. Taking into account these factors, a procedure for estimation total production costs was establish. In order to gain insight into the relationship of production and selling price of bioethanol, price of bioethanol for some countries of the European Union and the United States are given.

Determination production costs using PBC method

Directory of Open Access Journals (Sweden)

Todić Vladimir V.

2014-01-01

Full Text Available Basic characteristics of modern markets make requirements in quality increasing, decreasing prices and shortening delivery of products. In the middle of this requirements are production costs for whose determination are developed many traditional and alternative methods including PBC method (Process Based Costing. This method enables precisely locating and calculating indirect production costs, and with determined direct costs enables determination of total production costs. This paper shows usage of PBC method for determination production costs for three forms of processing cutting tools.

Grid Integration of Aggregated Demand Response, Part 2: Modeling Demand Response in a Production Cost Model

Energy Technology Data Exchange (ETDEWEB)

Hummon, Marissa [National Renewable Energy Lab. (NREL), Golden, CO (United States); Palchak, David [National Renewable Energy Lab. (NREL), Golden, CO (United States); Denholm, Paul [National Renewable Energy Lab. (NREL), Golden, CO (United States); Jorgenson, Jennie [National Renewable Energy Lab. (NREL), Golden, CO (United States); Olsen, Daniel J. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Kiliccote, Sila [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Matson, Nance [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Sohn, Michael [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Rose, Cody [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Dudley, Junqiao [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Goli, Sasank [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Ma, Ookie [U.S. Dept. of Energy, Washington, DC (United States)

2013-12-01

This report is one of a series stemming from the U.S. Department of Energy (DOE) Demand Response and Energy Storage Integration Study. This study is a multi-national-laboratory effort to assess the potential value of demand response (DR) and energy storage to electricity systems with different penetration levels of variable renewable resources and to improve our understanding of associatedmarkets and institutions. This report implements DR resources in the commercial production cost model PLEXOS.

The value of windpower: An investigation using a qualified production cost model

International Nuclear Information System (INIS)

Milligan, M.R.; Miller, A.H.

1993-07-01

As part of the US Department of Energy's Wind Energy Program at the National Renewable Energy Laboratory, we are using the Environmental Defense Fund's Electric Utility Financial ampersand Production Cost Model (Elfin) as a tool to determine the value of wind energy to specific utilities. The cases we have developed exercise a number of options in the way in which wind energy is treated: (1) as a load modifer (negative load); (2) as a quick-start supply-side resource with hourly varying output; and (3) probabilistically, using time-varying Weibull distributions. By using two wind speed distributions, two different wind turbines, and two different utilities, we show what the wind turbine cost/kW might be that results in a positive value of wind energy for these utilities

Examining the production costs of antiretroviral drugs.

Science.gov (United States)

Pinheiro, Eloan; Vasan, Ashwin; Kim, Jim Yong; Lee, Evan; Guimier, Jean Marc; Perriens, Joseph

2006-08-22

To present direct manufacturing costs and price calculations of individual antiretroviral drugs, enabling those responsible for their procurement to have a better understanding of the cost structure of their production, and to indicate the prices at which these antiretroviral drugs could be offered in developing country markets. Direct manufacturing costs and factory prices for selected first and second-line antiretroviral drugs were calculated based on cost structure data from a state-owned company in Brazil. Prices for the active pharmaceutical ingredients (API) were taken from a recent survey by the World Health Organization (WHO). The calculated prices for antiretroviral drugs are compared with quoted prices offered by privately-owned, for-profit manufacturers. The API represents the largest component of direct manufacturing costs (55-99%), while other inputs, such as salaries, equipment costs, and scale of production, have a minimal impact. The calculated prices for most of the antiretroviral drugs studied fall within the lower quartile of the range of quoted prices in developing country markets. The exceptions are those drugs, primarily for second-line therapy, for which the API is either under patent, in short supply, or in limited use in developing countries (e.g. abacavir, lopinavir/ritonavir, nelfinavir, saquinavir). The availability of data on the cost of antiretroviral drug production and calculation of factory prices under a sustainable business model provide benchmarks that bulk purchasers of antiretroviral drugs could use to negotiate lower prices. While truly significant price decreases for antiretroviral drugs will depend largely on the future evolution of API prices, the present study demonstrates that for several antiretroviral drugs price reduction is currently possible. Whether or not these reductions materialize will depend on the magnitude of indirect cost and profit added by each supplier over the direct production costs. The ability to

An equivalent marginal cost-pricing model for the district heating market

International Nuclear Information System (INIS)

Zhang, Junli; Ge, Bin; Xu, Hongsheng

2013-01-01

District heating pricing is a core element in reforming the heating market. Existing district heating pricing methods, such as the cost-plus pricing method and the conventional marginal-cost pricing method, cannot simultaneously provide both high efficiency and sufficient investment cost return. To solve this problem, the paper presents a new pricing model, namely Equivalent Marginal Cost Pricing (EMCP) model, which is based on the EVE pricing theory and the unique characteristics of heat products and district heating. The EMCP model uses exergy as the measurement of heating product value and places products from different district heating regions into the same competition platform. In the proposed model, the return on investment cost is closely related to the quoted cost, and within the limitations of the Heating Capacity Cost Reference and the maximum compensated shadow capacity cost, both lower and higher price speculations of heat producers are restricted. Simulation results show that the model can guide heat producers to bid according to their production costs and to provide reasonable returns on investment, which contributes to stimulate the role of price leverage and to promote the optimal allocation of heat resources. - Highlights: • Presents a new district heating pricing model. • Provides both high market efficiency and sufficient investment cost return. • Provides a competition mechanism for various products from different DH regions. • Both of lower and higher price speculations are restricted in the new model

TTS-Polttopuu - cost calculation model for fuelwood

International Nuclear Information System (INIS)

Naett, H.; Ryynaenen, S.

1999-01-01

The TTS-Institutes's Forestry Department has developed a computer based cost-calculation model, 'TTS-Polttopuu', for the calculation of unit costs and resource needs in the harvesting systems for wood chips and split firewood. The model enables to determine the productivity and device cost per operating hour by each working stage of the harvesting system. The calculation model also enables the user to find out how changes in the productivity and cost bases of different harvesting chains influence the unit cost of the whole system. The harvesting chain includes the cutting of delimbed and non-delimbed fuelwood, forest haulage, road transportation, chipping and chopping of longwood at storage. This individually operating software was originally developed to serve research needs, but it also serves the needs of the forestry and agricultural education, training and extension as well as individual firewood producers. The system requirements for this cost calculation model are at least 486- level processor with the Windows 95/98 -operating system, 16 MB of memory (RAM) and 5 MB of available hard-disk. This development work was carried out in conjunction with the nation-wide BIOENERGY-research programme. (orig.)

THE COST OF PRODUCTION UNDER DIRECT COSTING AND ABSORPTION COSTING – A COMPARATIVE APPROACH

Directory of Open Access Journals (Sweden)

Bunea-Bontaş Cristina Aurora

2013-04-01

Full Text Available Managerial accounting has an important role in strategic management of a company, being designed especially for managers, in order to optimise their decision regarding operating activities. One of the objectives of managerial accounting is the cost calculation, for measuring inventory costs, and the costs and profitability of products and services. Cost calculation systems can vary in terms of which costs are assigned to cost objects, two significant calculation systems being adopted by the costing theory: full cost accounting, which includes all costs of production as product costs, and partial cost accounting, which includes only those costs that vary with output. This article provides a comparative approach regarding the differences between the calculation of the cost of production under direct costing and absorption costing. It also examines the implication of using each of these calculation systems on the financial position and financial performance of the companies reported on the statement of financial position and the income statement. Finally, the advantages of using direct costing for internal reporting are discussed, considering that this method is not acceptable for external reporting to stockholders and other external users.

Cost Minimization for Joint Energy Management and Production Scheduling Using Particle Swarm Optimization

Science.gov (United States)

Shah, Rahul H.

Production costs account for the largest share of the overall cost of manufacturing facilities. With the U.S. industrial sector becoming more and more competitive, manufacturers are looking for more cost and resource efficient working practices. Operations management and production planning have shown their capability to dramatically reduce manufacturing costs and increase system robustness. When implementing operations related decision making and planning, two fields that have shown to be most effective are maintenance and energy. Unfortunately, the current research that integrates both is limited. Additionally, these studies fail to consider parameter domains and optimization on joint energy and maintenance driven production planning. Accordingly, production planning methodology that considers maintenance and energy is investigated. Two models are presented to achieve well-rounded operating strategy. The first is a joint energy and maintenance production scheduling model. The second is a cost per part model considering maintenance, energy, and production. The proposed methodology will involve a Time-of-Use electricity demand response program, buffer and holding capacity, station reliability, production rate, station rated power, and more. In practice, the scheduling problem can be used to determine a joint energy, maintenance, and production schedule. Meanwhile, the cost per part model can be used to: (1) test the sensitivity of the obtained optimal production schedule and its corresponding savings by varying key production system parameters; and (2) to determine optimal system parameter combinations when using the joint energy, maintenance, and production planning model. Additionally, a factor analysis on the system parameters is conducted and the corresponding performance of the production schedule under variable parameter conditions, is evaluated. Also, parameter optimization guidelines that incorporate maintenance and energy parameter decision making in the

TTS-Polttopuu - cost calculation model for fuelwood

International Nuclear Information System (INIS)

Naett, H.; Ryynaenen, S.

1998-01-01

The TTS-Institutes's Forestry Department has developed a computer based costcalculation model, 'TTS-Polttopuu', for the calculation of unit costs and resource needs in the harvesting systems for wood chips and split firewood. The model enables to determine the productivity and device cost per operating hour by each working stage of the harvesting system. The calculation model also enables the user to find out how changes in the productivity and cost bases of different harvesting chains influence the unit cost of the whole system. The harvesting chain includes the cutting of delimbed and non-delimbed fuelwood, forest haulage, road transportation chipping and chopping of longwood at storage. This individually operating software was originally developed to serve research needs, but it also serves the needs of the forestry and agricultural education, training and extension as well as individual firewood producers. The system requirements for this cost calculation model are at least 486-level processor with the Windows 95/98 -operating system, 16 MB of memory (RAM) and 5 MB of available hard-disk. This development work was carried out in conjunction with the nation-wide BIOENERGY Research Programme. (orig.)

Proposed reliability cost model

Science.gov (United States)

Delionback, L. M.

1973-01-01

The research investigations which were involved in the study include: cost analysis/allocation, reliability and product assurance, forecasting methodology, systems analysis, and model-building. This is a classic example of an interdisciplinary problem, since the model-building requirements include the need for understanding and communication between technical disciplines on one hand, and the financial/accounting skill categories on the other. The systems approach is utilized within this context to establish a clearer and more objective relationship between reliability assurance and the subcategories (or subelements) that provide, or reenforce, the reliability assurance for a system. Subcategories are further subdivided as illustrated by a tree diagram. The reliability assurance elements can be seen to be potential alternative strategies, or approaches, depending on the specific goals/objectives of the trade studies. The scope was limited to the establishment of a proposed reliability cost-model format. The model format/approach is dependent upon the use of a series of subsystem-oriented CER's and sometimes possible CTR's, in devising a suitable cost-effective policy.

Environmental costs of meat production

DEFF Research Database (Denmark)

Nguyen, T Lan T; Hermansen, John Erik; Mogensen, Lisbeth

2012-01-01

This paper aims to address two questions: First, what is the real cost of meat to society if taking into account the environmental costs arising throughout the product life cycle; and second, whether and how the environmental costs related to meat production can be reduced. In addressing the issues...... to be the main contributor to the costs (55%), followed by global warming (21%) and respiratory inorganics (18%). A viable option combining improvement measures in three aspects: feed use, manure management, and manure utilization, reduces the environmental costs by a factor of 1.4. This results in an equal size......, we use pig meat production in the EU as a case study. The environmental costs of meat are displayed first as characterized results at different midpoint categories e.g. global warming, nature occupation, acidification, eutrophication, ecotoxicity, etc., and then aggregated into a single score using...

Renewable electricity production costs-A framework to assist policy-makers' decisions on price support

International Nuclear Information System (INIS)

Dinica, Valentina

2011-01-01

Despite recent progress, the production costs for renewable electricity remain above those for conventional power. Expectations of continuous reductions in production costs, typically underpin governments' policies for financial support. They often draw on the technology-focused versions of the Experience Curve model. This paper discusses how national-contextual factors also have a strong influence on production costs, such as geographic, infrastructural, institutional, and resource factors. As technologies mature, and as they reach significant levels of diffusion nationally, sustained increases in production costs might be recorded, due to these nationally contextual factors, poorly accounted for in policy-making decisions for price support. The paper suggests an analytical framework for a more comprehensive understanding of production costs. Based on this, it recommends that the evolution of specific cost levels and factors be monitored to locate 'sources of changes'. The paper also suggests policy instruments that governments may use to facilitate cost decreases, whenever possible. The application of the framework is illustrated for the diffusion of wind power in Spain during the past three decades. - Highlights: → Models, frameworks for policy-making on price support for renewable electricity production costs. → Policy instruments to help reduce production costs. → Limits to the influence of policies of production costs reductions.

Integrated batch production and maintenance scheduling for multiple items processed on a deteriorating machine to minimize total production and maintenance costs with due date constraint

Directory of Open Access Journals (Sweden)

Zahedi Zahedi

2016-04-01

Full Text Available This paper discusses an integrated model of batch production and maintenance scheduling on a deteriorating machine producing multiple items to be delivered at a common due date. The model describes the trade-off between total inventory cost and maintenance cost as the increase of production run length. The production run length is a time bucket between two consecutive preventive maintenance activities. The objective function of the model is to minimize total cost consisting of in process and completed part inventory costs, setup cost, preventive and corrective maintenance costs and rework cost. The problem is to determine the optimal production run length and to schedule the batches obtained from determining the production run length in order to minimize total cost.

Product costing program for wood component manufacturers

Science.gov (United States)

Adrienn Andersch; Urs Buehlmann; Jeff Palmer; Janice K Wiedenbeck; Steve. Lawser

2013-01-01

Accurate and timely product costing information is critically important for companies in planning the optimal utilization of company resources. While an overestimation of product costs can lead to loss of potential business and market share, underestimation of product costs can result in financial losses to the company. This article introduces a product costing program...

Cost function approach for estimating derived demand for composite wood products

Science.gov (United States)

T. C. Marcin

1991-01-01

A cost function approach was examined for using the concept of duality between production and input factor demands. A translog cost function was used to represent residential construction costs and derived conditional factor demand equations. Alternative models were derived from the translog cost function by imposing parameter restrictions.

Applying linear programming model to aggregate production planning of coated peanut products

Science.gov (United States)

Rohmah, W. G.; Purwaningsih, I.; Santoso, EF S. M.

2018-03-01

The aim of this study was to set the overall production level for each grade of coated peanut product to meet market demands with a minimum production cost. The linear programming model was applied in this study. The proposed model was used to minimize the total production cost based on the limited demand of coated peanuts. The demand values applied to the method was previously forecasted using time series method and production capacity aimed to plan the aggregate production for the next 6 month period. The results indicated that the production planning using the proposed model has resulted a better fitted pattern to the customer demands compared to that of the company policy. The production capacity of product family A, B, and C was relatively stable for the first 3 months of the planning periods, then began to fluctuate over the next 3 months. While, the production capacity of product family D and E was fluctuated over the 6-month planning periods, with the values in the range of 10,864 - 32,580 kg and 255 – 5,069 kg, respectively. The total production cost for all products was 27.06% lower than the production cost calculated using the company’s policy-based method.

Integrated modeling of software cost and quality

International Nuclear Information System (INIS)

Rone, K.Y.; Olson, K.M.

1994-01-01

In modeling the cost and quality of software systems, the relationship between cost and quality must be considered. This explicit relationship is dictated by the criticality of the software being developed. The balance between cost and quality is a viable software engineering trade-off throughout the life cycle. Therefore, the ability to accurately estimate the cost and quality of software systems is essential to providing reliable software on time and within budget. Software cost models relate the product error rate to the percent of the project labor that is required for independent verification and validation. The criticality of the software determines which cost model is used to estimate the labor required to develop the software. Software quality models yield an expected error discovery rate based on the software size, criticality, software development environment, and the level of competence of the project and the developers with respect to the processes being employed

Operational costs induced by fluctuating wind power production in Germany and Scandinavia

Energy Technology Data Exchange (ETDEWEB)

Meibom, P. [Risoe National Lab., DTU, System Analysis Dept., Roskilde (Denmark); Weber, C. [Univ. Duisburg-Essen, Chai og Energy Management (Germany); Barth, R.; Brand, H. [Univ. of Stuttgart, Inst. of Energy Economics and the Rational Use of Energy (Germany)

2007-05-15

Adding wind power generation in a power system changes the operational patterns of the existing units due to the variability and unpredictability of wind power production. For large amounts of wind power production the expectation is that the operational costs of the other power plants will increase due to more operation time in part-load and more start-ups. The change in operational costs induced by the wind power production can only be calculated by comparing the operational costs in two power system configurations: with wind power production and with alternative production having properties like conventional production, i.e. being predictable and less variable. The choice of the characteristics of the alternative production is not straight forward and will therefore influence the operational costs induced by wind power production. This paper presents a method for calculating the change in operational costs due to wind power production using a stochastic optimization model covering the power systems in Germany and the Nordic countries. Two cases of alternative production are used to calculate the change in operational costs namely perfectly predictable wind power production enabling calculation of the costs connected to unpredictability, and constant wind power production enabling calculation of the operational costs connected to variability of wind power production. A 2010 case with three different wind power production penetration levels is analysed in the paper. (au)

U3O8 production cost analysis study

International Nuclear Information System (INIS)

1978-08-01

This report presents the User's Manual for the computer program resulting from Bechtel's uranium production cost analysis. The model incorporates engineering and financial costs of sandstone mining and milling in the western United States. It does not consider exploration costs. The model was written in Fortran V, IBM compatible. Inputs from the user are such items as: ore grades, open pit or underground mines, acid or carbonate leach, and debt/equity ratio. The user may either input the desired discounted cash flow rate of return and obtain the necessary U 3 O 8 price, or input an estimated U 3 O 8 price and obtain the resulting discounted cash flow rate of return

Asymmetric Switch Costs in numeral naming and number word reading: Implications for models of bilingual language production

Directory of Open Access Journals (Sweden)

Michael eReynolds

2016-01-01

Full Text Available One approach used to gain insight into the processes underlying bilingual language comprehension and production examines the costs that arise from switching languages. For unbalanced bilinguals, asymmetric switch costs are reported in speech production, where the switch cost for L1 is larger than the switch cost for L2, whereas, symmetric switch costs are reported in language comprehension tasks, where the cost of switching is the same for L1 and L2. Presently, it is unclear why asymmetric switch costs are observed in speech production, but not in language comprehension. Three experiments are reported that simultaneously examine methodological explanations of task related differences in the switch cost asymmetry and the predictions of three accounts of the switch cost asymmetry in speech production. The results of these experiments suggest that (1 the type of language task (comprehension vs. production determines whether an asymmetric switch cost is observed and (2 at least some of the switch cost asymmetry arises within the language system.

17 CFR 229.1204 - (Item 1204) Oil and gas production, production prices and production costs.

Science.gov (United States)

2010-04-01

... production, production prices and production costs. 229.1204 Section 229.1204 Commodity and Securities... production, production prices and production costs. (a) For each of the last three fiscal years disclose... production cost, not including ad valorem and severance taxes, per unit of production. Instruction 1 to Item...

Analyzing Integrated Cost-Schedule Risk for Complex Product Systems R&D Projects

Directory of Open Access Journals (Sweden)

Zhe Xu

2014-01-01

Full Text Available The vast majority of the research efforts in project risk management tend to assess cost risk and schedule risk independently. However, project cost and time are related in reality and the relationship between them should be analyzed directly. We propose an integrated cost and schedule risk assessment model for complex product systems R&D projects. Graphical evaluation review technique (GERT, Monte Carlo simulation, and probability distribution theory are utilized to establish the model. In addition, statistical analysis and regression analysis techniques are employed to analyze simulation outputs. Finally, a complex product systems R&D project as an example is modeled by the proposed approach and the simulation outputs are analyzed to illustrate the effectiveness of the risk assessment model. It seems that integrating cost and schedule risk assessment can provide more reliable risk estimation results.

The COST model for calculation of forest operations costs

NARCIS (Netherlands)

Ackerman, P.; Belbo, H.; Eliasson, L.; Jong, de J.J.; Lazdins, A.; Lyons, J.

2014-01-01

Since the late nineteenth century when high-cost equipment was introduced into forestry there has been a need to calculate the cost of this equipment in more detail with respect to, for example, cost of ownership, cost per hour of production, and cost per production unit. Machine cost calculations

[Productivity costs of rheumatoid arthritis in Germany. Cost composition and prediction of main cost components].

Science.gov (United States)

Merkesdal, S; Huelsemann, J L; Mittendorf, T; Zeh, S; Zeidler, H; Ruof, J

2006-10-01

Identification of predictors for the productivity cost components: (1) sick leave, and (2) work disability in gainfully employed and (3) impaired household productivity in unemployed patients with rheumatoid arthritis (RA) from the societal perspective. Investigation of productivity costs was linked to a multicenter, randomized, controlled trial evaluating the effectiveness of clinical quality management in 338 patients with RA. The productivity losses were assessed according to the German Guidelines on Health Economic Evaluation. By means of multivariate logistic regression analyses, predictors of sick leave, work disability (employed patients, n=96), and for days confined to bed in unemployed patient (n=242) were determined. Mean annual costs of 970 EUR arose per person taking into consideration all patients (453 EUR sick leave, 63 EUR work disability, 454 EUR impaired productivity of unemployed patients). Disease activity, disease severity, and impaired physical function were global predictors for all of the cost components investigated. Sick leave costs were predicted by prior sick leave periods and the vocational status blue collar worker, work disability costs by sociodemographic variables (marital status, schooling), and the productivity costs of unemployed patients by impaired mental health and impaired physical functions. Interventions such as reduction in disease progression and control of disease activity, early vocational rehabilitation measures and vocational retraining in patients at risk of quitting working life, and self-management programs to learn coping strategies might decrease future RA-related productivity costs.

A deterministic aggregate production planning model considering quality of products

International Nuclear Information System (INIS)

Madadi, Najmeh; Wong, Kuan Yew

2013-01-01

Aggregate Production Planning (APP) is a medium-term planning which is concerned with the lowest-cost method of production planning to meet customers' requirements and to satisfy fluctuating demand over a planning time horizon. APP problem has been studied widely since it was introduced and formulated in 1950s. However, in several conducted studies in the APP area, most of the researchers have concentrated on some common objectives such as minimization of cost, fluctuation in the number of workers, and inventory level. Specifically, maintaining quality at the desirable level as an objective while minimizing cost has not been considered in previous studies. In this study, an attempt has been made to develop a multi-objective mixed integer linear programming model that serves those companies aiming to incur the minimum level of operational cost while maintaining quality at an acceptable level. In order to obtain the solution to the multi-objective model, the Fuzzy Goal Programming approach and max-min operator of Bellman-Zadeh were applied to the model. At the final step, IBM ILOG CPLEX Optimization Studio software was used to obtain the experimental results based on the data collected from an automotive parts manufacturing company. The results show that incorporating quality in the model imposes some costs, however a trade-off should be done between the cost resulting from producing products with higher quality and the cost that the firm may incur due to customer dissatisfaction and sale losses.

Capital cost models for geothermal power plants and fluid transmission systems. [GEOCOST

Energy Technology Data Exchange (ETDEWEB)

Schulte, S.C.

1977-09-01

The GEOCOST computer program is a simulation model for evaluating the economics of developing geothermal resources. The model was found to be both an accurate predictor of geothermal power production facility costs and a valid designer of such facilities. GEOCOST first designs a facility using thermodynamic optimization routines and then estimates costs for the selected design using cost models. Costs generated in this manner appear to correspond closely with detailed cost estimates made by industry planning groups. Through the use of this model, geothermal power production costs can be rapidly and accurately estimated for many alternative sites making the evaluation process much simpler yet more meaningful.

Make-up wells drilling cost in financial model for a geothermal project

Science.gov (United States)

Oktaviani Purwaningsih, Fitri; Husnie, Ruly; Afuar, Waldy; Abdurrahman, Gugun

2017-12-01

After commissioning of a power plant, geothermal reservoir will encounter pressure decline, which will affect wells productivity. Therefore, further drilling is carried out to enhance steam production. Make-up wells are production wells drilled inside an already confirmed reservoir to maintain steam production in a certain level. Based on Sanyal (2004), geothermal power cost consists of three components, those are capital cost, O&M cost and make-up drilling cost. The make-up drilling cost component is a major part of power cost which will give big influence in a whole economical value of the project. The objective of this paper it to analyse the make-up wells drilling cost component in financial model of a geothermal power project. The research will calculate make-up wells requirements, drilling costs as a function of time and how they influence the financial model and affect the power cost. The best scenario in determining make-up wells strategy in relation with the project financial model would be the result of this research.

Working long hours: less productive but less costly? Firm-level evidence from Belgium

OpenAIRE

DELMEZ, Françoise; Vandenberghe, Vincent

2017-01-01

From the point of view of a profit-maximizing firm, the optimal number of working hours depends not only on the marginal productivity of hours but also on the marginal labour cost. This paper develops and assesses empirically a simple model of firms' decision making where productivity varies with hours and where the firm faces labour costs per worker that are invariant to the number of hours worked: i.e. quasi-fixed labour costs. Using Belgian firm-level data on production, labour costs, work...

Vector Production in an Academic Environment: A Tool to Assess Production Costs

Science.gov (United States)

Boeke, Aaron; Doumas, Patrick; Reeves, Lilith; McClurg, Kyle; Bischof, Daniela; Sego, Lina; Auberry, Alisha; Tatikonda, Mohan

2013-01-01

Abstract Generating gene and cell therapy products under good manufacturing practices is a complex process. When determining the cost of these products, researchers must consider the large number of supplies used for manufacturing and the personnel and facility costs to generate vector and maintain a cleanroom facility. To facilitate cost estimates, the Indiana University Vector Production Facility teamed with the Indiana University Kelley School of Business to develop a costing tool that, in turn, provides pricing. The tool is designed in Microsoft Excel and is customizable to meet the needs of other core facilities. It is available from the National Gene Vector Biorepository. The tool allows cost determinations using three different costing methods and was developed in an effort to meet the A21 circular requirements for U.S. core facilities performing work for federally funded projects. The costing tool analysis reveals that the cost of vector production does not have a linear relationship with batch size. For example, increasing the production from 9 to18 liters of a retroviral vector product increases total costs a modest 1.2-fold rather than doubling in total cost. The analysis discussed in this article will help core facilities and investigators plan a cost-effective strategy for gene and cell therapy production. PMID:23360377

The effect of CO2 regulations on the cost of corn ethanol production

Science.gov (United States)

Plevin, R. J.; Mueller, S.

2008-04-01

To explore the effect of CO2 price on the effective cost of ethanol production we have developed a model that integrates financial and emissions accounting for dry-mill corn ethanol plants. Three policy options are modeled: (1) a charge per unit of life cycle CO2 emissions, (2) a charge per unit of direct biorefinery emissions only, and (3) a low carbon fuel standard (LCFS). A CO2 charge on life cycle emissions increases production costs by between 0.005 and 0.008 l-1 per 10 Mg-1 CO2 price increment, across all modeled plant energy systems, with increases under direct emissions somewhat lower in all cases. In contrast, a LCFS increases the cost of production for selected plant energy systems only: a LCFS requiring reductions in average fuel global warming intensity (GWI) with a target of 10% below the 2005 baseline increases the production costs for coal-fired plants only. For all other plant types, the LCFS operates as a subsidy. The findings depend strongly on the magnitude of a land use change adder. Some land use change adders currently discussed in the literature will push the GWI of all modeled production systems above the LCFS target, flipping the CO2 price from a subsidy to a tax.

Productivity costs in economic evaluations: past, present, future.

Science.gov (United States)

Krol, Marieke; Brouwer, Werner; Rutten, Frans

2013-07-01

Productivity costs occur when the productivity of individuals is affected by illness, treatment, disability or premature death. The objective of this paper was to review past and current developments related to the inclusion, identification, measurement and valuation of productivity costs in economic evaluations. The main debates in the theory and practice of economic evaluations of health technologies described in this review have centred on the questions of whether and how to include productivity costs, especially productivity costs related to paid work. The past few decades have seen important progress in this area. There are important sources of productivity costs other than absenteeism (e.g. presenteeism and multiplier effects in co-workers), but their exact influence on costs remains unclear. Different measurement instruments have been developed over the years, but which instrument provides the most accurate estimates has not been established. Several valuation approaches have been proposed. While empirical research suggests that productivity costs are best included in the cost side of the cost-effectiveness ratio, the jury is still out regarding whether the human capital approach or the friction cost approach is the most appropriate valuation method to do so. Despite the progress and the substantial amount of scientific research, a consensus has not been reached on either the inclusion of productivity costs in economic evaluations or the methods used to produce productivity cost estimates. Such a lack of consensus has likely contributed to ignoring productivity costs in actual economic evaluations and is reflected in variations in national health economic guidelines. Further research is needed to lessen the controversy regarding the estimation of health-related productivity costs. More standardization would increase the comparability and credibility of economic evaluations taking a societal perspective.

Waste Management facilities cost information: System Cost Model Software Quality Assurance Plan. Revision 2

International Nuclear Information System (INIS)

Peterson, B.L.; Lundeen, A.S.

1996-02-01

In May of 1994, Lockheed Idaho Technologies Company (LITCO) in Idaho Falls, Idaho and subcontractors developed the System Cost Model (SCM) application. The SCM estimates life-cycle costs of the entire US Department of Energy (DOE) complex for designing; constructing; operating; and decommissioning treatment, storage, and disposal (TSD) facilities for mixed low-level, low-level, transuranic, and mixed transuranic waste. The SCM uses parametric cost functions to estimate life-cycle costs for various treatment, storage, and disposal modules which reflect planned and existing facilities at DOE installations. In addition, SCM can model new facilities based on capacity needs over the program life cycle. The SCM also provides transportation costs for truck and rail, which include transport of contact-handled, remote-handled, and alpha (transuranic) wastes. The user can provide input data (default data is included in the SCM) including the volume and nature of waste to be managed, the time period over which the waste is to be managed, and the configuration of the waste management complex (i.e., where each installation's generated waste will be treated, stored, and disposed). Then the SCM uses parametric cost equations to estimate the costs of pre-operations (designing), construction costs, operation management, and decommissioning these waste management facilities. For the product to be effective and useful the SCM users must have a high level of confidence in the data generated by the software model. The SCM Software Quality Assurance Plan is part of the overall SCM project management effort to ensure that the SCM is maintained as a quality product and can be relied on to produce viable planning data. This document defines tasks and deliverables to ensure continued product integrity, provide increased confidence in the accuracy of the data generated, and meet the LITCO's quality standards during the software maintenance phase. 8 refs., 1 tab

Waste Management facilities cost information: System Cost Model Software Quality Assurance Plan. Revision 2

Energy Technology Data Exchange (ETDEWEB)

Peterson, B.L.; Lundeen, A.S.

1996-02-01

In May of 1994, Lockheed Idaho Technologies Company (LITCO) in Idaho Falls, Idaho and subcontractors developed the System Cost Model (SCM) application. The SCM estimates life-cycle costs of the entire US Department of Energy (DOE) complex for designing; constructing; operating; and decommissioning treatment, storage, and disposal (TSD) facilities for mixed low-level, low-level, transuranic, and mixed transuranic waste. The SCM uses parametric cost functions to estimate life-cycle costs for various treatment, storage, and disposal modules which reflect planned and existing facilities at DOE installations. In addition, SCM can model new facilities based on capacity needs over the program life cycle. The SCM also provides transportation costs for truck and rail, which include transport of contact-handled, remote-handled, and alpha (transuranic) wastes. The user can provide input data (default data is included in the SCM) including the volume and nature of waste to be managed, the time period over which the waste is to be managed, and the configuration of the waste management complex (i.e., where each installation`s generated waste will be treated, stored, and disposed). Then the SCM uses parametric cost equations to estimate the costs of pre-operations (designing), construction costs, operation management, and decommissioning these waste management facilities. For the product to be effective and useful the SCM users must have a high level of confidence in the data generated by the software model. The SCM Software Quality Assurance Plan is part of the overall SCM project management effort to ensure that the SCM is maintained as a quality product and can be relied on to produce viable planning data. This document defines tasks and deliverables to ensure continued product integrity, provide increased confidence in the accuracy of the data generated, and meet the LITCO`s quality standards during the software maintenance phase. 8 refs., 1 tab.

Impact cost of the product on the effectiveness of business organizations

Directory of Open Access Journals (Sweden)

A. S. Senin

2015-01-01

Full Text Available One of the key elements of managing the operations of the organization - management costs, as the costs, representing the payment that needs to be done to attract and retain economic resources, are one of the main factors determining the size of the financial results of the organization, return on invested capital, and, ultimately, the value of the business.Objectives. The aim of this work is to study the influence of the structure of production costs on the profitability of products.Method’s. To complete this article were used such methods of analysis as legal, comparative, economic-statistical and correlation.Conclusions / significance. The practical value of this work lies in the fact that in the article the notion and cogs, equations of linear regression between the proportion of costs in the cost and profitability of products by types of economic activity in the Russian Federation in 2012, the Obtained models allow knowing the share of costs in the cost structure for different types of economic activities in the Russian Federation in 2012 to estimate the average level of profitability of production.

Impacts of supplyshed-level differences in productivity and land Costs on the economics of hybrid poplar production in Minnesota, USA

Science.gov (United States)

William Lazarus; William L. Headlee; Ronald S. Zalesny

2015-01-01

The joint effects of poplar biomass productivity and land costs on poplar production economics were compared for 12 Minnesota counties and two genetic groups, using a process-based model (3-PG) to estimate productivity. The counties represent three levels of productivity and a range of land costs (annual rental rates) from $128/ha to $534/ha. An optimal rotation age...

Estimating generation costs for wind power production in France

International Nuclear Information System (INIS)

Benazet, J.F.; Probert, E.J.

1997-01-01

Wind power is being exploited in several European countries as one of a possible number of sources of renewable energy. However, in France there is a heavy reliance on nuclear and hydro-electric power and the potential of wind power as part of the energy mix has been virtually ignored. One of the reasons advanced for the under utilisation of this technology is that it is financially unattractive. In this paper the contribution which wind power could potentially make to overall power production levels in France is examined. A cost estimate model is developed which derives electricity generation costs and determines realistic levels of production for the future. The model automatically determines the associated number of wind turbines required and the geographical areas in which they should be located. (author)

Final Report: Hydrogen Production Pathways Cost Analysis (2013 – 2016)

Energy Technology Data Exchange (ETDEWEB)

James, Brian David [Strategic Analysis Inc., Arlington, VA (United States); DeSantis, Daniel Allan [Strategic Analysis Inc., Arlington, VA (United States); Saur, Genevieve [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2016-09-30

This report summarizes work conducted under a three year Department of Energy (DOE) funded project to Strategic Analysis, Inc. (SA) to analyze multiple hydrogen (H₂) production technologies and project their corresponding levelized production cost of H₂. The analysis was conducted using the H2A Hydrogen Analysis Tool developed by the DOE and National Renewable Energy Laboratory (NREL). The project was led by SA but conducted in close collaboration with the NREL and Argonne National Laboratory (ANL). In-depth techno-economic analysis (TEA) of five different H₂ production methods was conducted. These TEAs developed projections for capital costs, fuel/feedstock usage, energy usage, indirect capital costs, land usage, labor requirements, and other parameters, for each H₂ production pathway, and use the resulting cost and system parameters as inputs into the H2A discounted cash flow model to project the production cost of H₂ ($/kgH₂). Five technologies were analyzed as part of the project and are summarized in this report: Proton Exchange Membrane technology (PEM), High temperature solid oxide electrolysis cell technology (SOEC), Dark fermentation of biomass for H₂ production, H₂ production via Monolithic Piston-Type Reactors with rapid swing reforming and regeneration reactions, and Reformer-Electrolyzer-Purifier (REP) technology developed by Fuel Cell Energy, Inc. (FCE).

The ''reference costs'' of the electrical production

International Nuclear Information System (INIS)

1997-05-01

This study objective is to give an aid for the investments choice in the field of electricity production and for national choices in the field of long-dated production. Important evolutions appeared since the last exercise ''reference costs'' of 1993. Electricity production costs, presented in this study, are actualized economic costs. They consider the following production facilities: nuclear, pulverized coal with fumes processing, circulating fluidized bed, combustion turbines, cogeneration and wind turbines. (A.L.B.)

A new approach for product cost estimation using data envelopment analysis

Directory of Open Access Journals (Sweden)

Adil Salam

2012-10-01

Full Text Available Cost estimation of new products has always been difficult as only few design, manufacturing and operational features will be known. In these situations, parametric or non-parametric methods are commonly used to estimate the cost of a product given the corresponding cost drivers. The parametric models use priori determined cost function where the parameters of the function are evaluated from historical data. Non-parametric methods, on the other hand, attempt to fit curves to the historic data without predetermined function. In both methods, it is assumed that the historic data used in the analysis is a true representation of the relation between the cost drivers and the corresponding costs. However, because of efficiency variations of the manufacturers and suppliers, changes in supplier selections, market fluctuations, and several other reasons, certain costs in the historic data may be too high whereas other costs may represent better deals for their corresponding cost drivers. Thus, it may be important to rank the historic data and identify benchmarks and estimate the target costs of the product based on these benchmarks. In this paper, a novel adaptation of cost drivers and cost data is introduced in order to use data envelopment analysis for the purpose of ranking cost data and identify benchmarks, and then estimate the target costs of a new product based on these benchmarks. An illustrative case study has been presented for the cost estimation of landing gears of an aircraft manufactured by an aerospace company located in Montreal, CANADA.

Dynamics of a Bertrand duopoly with differentiated products and nonlinear costs: Analysis, comparisons and new evidences

International Nuclear Information System (INIS)

Brianzoni, Serena; Gori, Luca; Michetti, Elisabetta

2015-01-01

This paper studies mathematical properties and dynamics of a duopoly with price competition and horizontal product differentiation by introducing quadratic production costs (decreasing returns to scale), thus extending the model with linear costs (constant returns to scale) of Fanti et al. [11]. The economy is described by a two-dimensional non-invertible discrete time dynamic system. The paper first determines fixed points and other invariant sets, showing that synchronized dynamics can occur. Then, stability properties are compared in the cases of quadratic costs and linear costs by considering the degree of product differentiation and the speed of adjustment of prices as key parameters. It is also shown that synchronization takes place if products tend to be relatively complements and stressed similarities and differences between models with quadratic and linear costs. Finally, the paper focuses on the phenomenon of multistability thus underlying new evidences in comparison with the model with linear costs.

Capital Cost Optimization for Prefabrication: A Factor Analysis Evaluation Model

Directory of Open Access Journals (Sweden)

Hong Xue

2018-01-01

Full Text Available High capital cost is a significant hindrance to the promotion of prefabrication. In order to optimize cost management and reduce capital cost, this study aims to explore the latent factors and factor analysis evaluation model. Semi-structured interviews were conducted to explore potential variables and then questionnaire survey was employed to collect professionals’ views on their effects. After data collection, exploratory factor analysis was adopted to explore the latent factors. Seven latent factors were identified, including “Management Index”, “Construction Dissipation Index”, “Productivity Index”, “Design Efficiency Index”, “Transport Dissipation Index”, “Material increment Index” and “Depreciation amortization Index”. With these latent factors, a factor analysis evaluation model (FAEM, divided into factor analysis model (FAM and comprehensive evaluation model (CEM, was established. The FAM was used to explore the effect of observed variables on the high capital cost of prefabrication, while the CEM was used to evaluate comprehensive cost management level on prefabrication projects. Case studies were conducted to verify the models. The results revealed that collaborative management had a positive effect on capital cost of prefabrication. Material increment costs and labor costs had significant impacts on production cost. This study demonstrated the potential of on-site management and standardization design to reduce capital cost. Hence, collaborative management is necessary for cost management of prefabrication. Innovation and detailed design were needed to improve cost performance. The new form of precast component factories can be explored to reduce transportation cost. Meanwhile, targeted strategies can be adopted for different prefabrication projects. The findings optimized the capital cost and improved the cost performance through providing an evaluation and optimization model, which helps managers to

Automated cost modeling for coal combustion systems

International Nuclear Information System (INIS)

Rowe, R.M.; Anast, K.R.

1991-01-01

This paper reports on cost information developed at AMAX R and D Center for coal-water slurry production implemented in an automated spreadsheet (Lotus 123) for personal computer use. The spreadsheet format allows the user toe valuate impacts of various process options, coal feedstock characteristics, fuel characteristics, plant location sites, and plant sizes on fuel cost. Model flexibility reduces time and labor required to determine fuel costs and provides a basis to compare fuels manufactured by different processes. The model input includes coal characteristics, plant flowsheet definition, plant size, and market location. Based on these inputs, selected unit operations are chosen for coal processing

Estimating productivity costs using the friction cost approach in practice: a systematic review.

Science.gov (United States)

Kigozi, Jesse; Jowett, Sue; Lewis, Martyn; Barton, Pelham; Coast, Joanna

2016-01-01

The choice of the most appropriate approach to valuing productivity loss has received much debate in the literature. The friction cost approach has been proposed as a more appropriate alternative to the human capital approach when valuing productivity loss, although its application remains limited. This study reviews application of the friction cost approach in health economic studies and examines how its use varies in practice across different country settings. A systematic review was performed to identify economic evaluation studies that have estimated productivity costs using the friction cost approach and published in English from 1996 to 2013. A standard template was developed and used to extract information from studies meeting the inclusion criteria. The search yielded 46 studies from 12 countries. Of these, 28 were from the Netherlands. Thirty-five studies reported the length of friction period used, with only 16 stating explicitly the source of the friction period. Nine studies reported the elasticity correction factor used. The reported friction cost approach methods used to derive productivity costs varied in quality across studies from different countries. Few health economic studies have estimated productivity costs using the friction cost approach. The estimation and reporting of productivity costs using this method appears to differ in quality by country. The review reveals gaps and lack of clarity in reporting of methods for friction cost evaluation. Generating reporting guidelines and country-specific parameters for the friction cost approach is recommended if increased application and accuracy of the method is to be realized.

ECONOMIC ELEMENTS REGARDING THE STEEL COST PRODUCTION COUNTING

OpenAIRE

Adrian IOANA; Nicolae CONSTANTIN; Elena-Claudia DRAGNA; Massimo POLIFRONI

2016-01-01

Our article features the elements that make up the cost of production. The economic activity implies a consumption of factors followed-up by products expressed in goods or services. In the first part of the article, we have defined and detailed the cost of production. In the second part we have calculated the cost of the production of one tone of low alloyed steel with vanadium. The prices for the components of cost production have been established within, Tenaris site, located in Calarasi co...

Economic costs of electricity production in Poland

International Nuclear Information System (INIS)

Beeldman, M.; Solinski, J.

1994-02-01

This study presents a methodology for the calculation of the economic costs of the production of electricity. This methodology is applied to assess electricity production cost in Poland by type of power station for the years 1995 and 2000. In addition, an overview is presented of the methods used by the OECD countries, particularly in the Netherlands. The main conclusions of the study are: 1) the real economic costs to generate electricity in Poland are about two times higher compared with the traditional book-keeping data; 2) the investment costs will become the most important cost component in the near future; and 3) there are considerables differences in production cost per kWh for the different types of power plants in Poland. 4 appendices, 14 refs

Spatial and temporal aspects of grain accumulation costs for ethanol production: An Australian case study

International Nuclear Information System (INIS)

Anderton, Nikki; Kingwell, Ross

2008-01-01

Ethanol production is increasingly commonplace in many grain-producing regions. This paper uses the grain-producing region of south-western Australia to illustrate spatial and temporal aspects of grain accumulation costs for ethanol production. Specifically, this study examines how price variability of various wheat grades, combined with spatial and temporal variability in production of those grades, affects the costs of grain accumulation. These costs are the main components of an ethanol plant's operating costs so lessening these costs can offer a comparative advantage for a plant owner. Logistics models based on mathematical programming are constructed for a range of plant sizes and locations for ethanol production. Modelling results identify low-cost sites that generate cost savings, in present value terms, of between 5 and 7.5 per cent, depending on plant size, over the 9-year study period. At all locations, small to medium-sized plants offer advantages of lower and less variable costs of grain accumulation. Yet, all locations and all plant sizes are characterised by marked volatility in the cost of grain accumulation. The profitability of ethanol production based on wheat in this region of Australia is particularly exposed to any prolonged period of high grain prices relative to petroleum prices, given current biofuel-policy settings in Australia. (author)

Costs of electronuclear fuel production

International Nuclear Information System (INIS)

Flaim, T.; Loose, V.

1978-07-01

The Los Alamos Scientific Laboratory (LASL) proposes to study the electronuclear fuel producer (EFP) as a means of producing fissile fuel to generate electricity. The main advantage of the EFP is that it may reduce the risks of nuclear proliferation by breeding 233 U from thorium, thereby avoiding plutonium separation. A report on the costs of electronuclear fuel production based upon two designs considered by LASL is presented. The findings indicate that the EFP design variations considered are not likely to result in electricity generation costs as low as the uranium fuel cycle used in the US today. At current estimates of annual fuel output (500 kg 233 U per EFP), the costs of electricity generation using fuel produced by the EFP are more than three times higher than generating costs using the traditional fuel cycle. Sensitivity analysis indicates that electronuclear fuel production would become cost competitive with the traditional uranium fuel cycle when U 3 O 8 (yellowcake) prices approach $1000 per pound

Analysis on the cost structure of product recall for reverse supply chain

Science.gov (United States)

Yanhua, Feng; Xuhui, Xia; Zheng, Yang

2017-12-01

The research on the reverse supply chain of product recall mainly focused on the recall network structure, logistics mode and so on. In this paper, when product recall and supply channel are fixed, the specific structure and function expression of cost are analyzed according to the peak season and off-season of recall activities, and whether the assembly manufacturer, supplier and recyclers are cooperated situation, respectively, to build the total cost structure of the function model. Finally, the model is validated correctly through the automotive industry and the electromechanical industry.

Production system with process quality control: modelling and application

Science.gov (United States)

Tsou, Jia-Chi

2010-07-01

Over the past decade, there has been a great deal of research dedicated to the study of quality and the economics of production. In this article, we develop a dynamic model which is based on the hypothesis of a traditional economic production quantity model. Taguchi's cost of poor quality is used to evaluate the cost of poor quality in the dynamic production system. A practical case from the automotive industry, which uses the Six-sigma DMAIC methodology, is discussed to verify the proposed model. This study shows that there is an optimal value of quality investment to make the production system reach a reasonable quality level and minimise the production cost. Based on our model, the management can adjust its investment in quality improvement to generate considerable financial return.

ECONOMIC ELEMENTS REGARDING THE STEEL COST PRODUCTION COUNTING

Directory of Open Access Journals (Sweden)

Adrian IOANA

2016-08-01

Full Text Available Our article features the elements that make up the cost of production. The economic activity implies a consumption of factors followed-up by products expressed in goods or services. In the first part of the article, we have defined and detailed the cost of production. In the second part we have calculated the cost of the production of one tone of low alloyed steel with vanadium. The prices for the components of cost production have been established within, Tenaris site, located in Calarasi county, Romania.

Profitability indicators of milk production cost center in intensive systems of production

Directory of Open Access Journals (Sweden)

Glauber dos Santos

2012-01-01

Full Text Available The objective was to estimate some profitability indicators of dairy cost center farms with a high volume of daily production in feedlot. The Intended was also to identify the components that had the greatest influence on the operational cost. We used data from three milk systems production, with the origin of the purebred Holsteins. It was considered as a milk cost center production all expenses related in lactating and dry cows. The methodology used total cost and operating cost in profitability analysis. A production system, by presenting gross margin, net positive result, was able to produce short, medium and long term. Another production system had a positive gross margin and net, with conditions to survive in the short and medium term. Finally, the third system of production has shown a negative gross margin presenting decapitalizing and entering into debt, as revenues were not enough to pay operating expenses even effective. The component items of the effective operational cost that exercised higher “impact” cost and income from milk were, in decreasing order, the feeding, labor, miscellaneous expenses, sanitation, energy, milking, reproduction, equipment rental, BST and taxes.

A smart Monte Carlo procedure for production costing and uncertainty analysis

International Nuclear Information System (INIS)

Parker, C.; Stremel, J.

1996-01-01

Electric utilities using chronological production costing models to decide whether to buy or sell power over the next week or next few weeks need to determine potential profits or losses under a number of uncertainties. A large amount of money can be at stake--often $100,000 a day or more--and one party of the sale must always take on the risk. In the case of fixed price ($/MWh) contracts, the seller accepts the risk. In the case of cost plus contracts, the buyer must accept the risk. So, modeling uncertainty and understanding the risk accurately can improve the competitive edge of the user. This paper investigates an efficient procedure for representing risks and costs from capacity outages. Typically, production costing models use an algorithm based on some form of random number generator to select resources as available or on outage. These algorithms allow experiments to be repeated and gains and losses to be observed in a short time. The authors perform several experiments to examine the capability of three unit outage selection methods and measures their results. Specifically, a brute force Monte Carlo procedure, a Monte Carlo procedure with Latin Hypercube sampling, and a Smart Monte Carlo procedure with cost stratification and directed sampling are examined

Biofuel Crops Expansion: Evaluating the Impact on the Agricultural Water Scarcity Costs and Hydropower Production with Hydro Economic Modeling

Science.gov (United States)

Marques, G.

2015-12-01

Biofuels such as ethanol from sugar cane remain an important element to help mitigate the impacts of fossil fuels on the atmosphere. However, meeting fuel demands with biofuels requires technological advancement for water productivity and scale of production. This may translate into increased water demands for biofuel crops and potential for conflicts with incumbent crops and other water uses including domestic, hydropower generation and environmental. It is therefore important to evaluate the effects of increased biofuel production on the verge of water scarcity costs and hydropower production. The present research applies a hydro-economic optimization model to compare different scenarios of irrigated biofuel and hydropower production, and estimates the potential tradeoffs. A case study from the Araguari watershed in Brazil is provided. These results should be useful to (i) identify improved water allocation among competing economic demands, (ii) support water management and operations decisions in watersheds where biofuels are expected to increase, and (iii) identify the impact of bio fuel production in the water availability and economic value. Under optimized conditions, adoption of sugar cane for biofuel production heavily relies on the opportunity costs of other crops and hydropower generation. Areas with a lower value crop groups seem more suitable to adopt sugar cane for biofuel when the price of ethanol is sufficiently high and the opportunity costs of hydropower productions are not conflicting. The approach also highlights the potential for insights in water management from studying regional versus larger scales bundled systems involving water use, food production and power generation.

Cost of paricá wood production in Paragominas region, Para State, Brazil

Directory of Open Access Journals (Sweden)

Rafaela da Silveira

2017-12-01

Full Text Available The silvicultural and economic potential of paricá (Schizolobium amazonicum has encouraged the expansion of this crop, mainly in the northern region of the country, provoking the need for studies on the species. The objective of this study was to estimate paricá production in Paragominas region, Para State, Brazil, at 5, 6 and 7 years, in three classes of productivity considering five plant arrangements, being identified the main costs of production, in addition to those most affected by plant arrangements. The volumetric estimation was obtained by modeling in population level and the analysis of the costs, through the methodology of the operational cost. It was possible to infer that the arrangement of plants 3 m x 2 m was superior in volume, compared to the other analyzed plant arrangements. The effective operating cost represented on average 65% of the total production costs. Transport was the most significant individual cost, in all analyzed plant arrangements. The maintenance, among the set of activities, was the most significant in planting, fact that may be related to the number and the long period for the activities execution. Smaller plant arrangements presented the higher total costs of production, depending or not on the remuneration for the use of the permanent and current capital.

An inventory control model for biomass dependent production systems

International Nuclear Information System (INIS)

Grado, S.C.; Strauss, C.H.

1993-01-01

The financial performance of a biomass dependent production system was critiqued based on the development and validation of an inventory control model. Dynamic programming was used to examine the constraints and capabilities of producing ethanol from various biomass crops. In particular, the model evaluated the plantation, harvest, and manufacturing components of a woody biomass supply system. The optimum wood to ethanol production scheme produced 38 million litres of ethanol in the harvest year, at 13.6 million litre increase over the least optimal policy as demonstrated in the dynamic programming results. The system produced ethanol at a delivered cost of $0.38 L -1 which was consistent with the unit costs from other studies. Nearly 60% of the delivered costs were in ethanol production. The remaining costs were attributed to growing biomass (14%), harvest and shipment of the crop (18%), storage of the raw material and finished product (7%) and open-quotes lost salesclose quotes (2%). Inventory control, in all phases of production, proved to be an important cost consideration throughout the model. The model also analyzed the employment of alternative harvesting policies and the use of different or multiple feedstocks. A comparison between the least cost wood system and an even cut wood system further revealed the benefits of using an inventory control system

Impacts of facility size and location decisions on ethanol production cost

International Nuclear Information System (INIS)

Kocoloski, Matt; Michael Griffin, W.; Scott Matthews, H.

2011-01-01

Cellulosic ethanol has been identified as a promising alternative to fossil fuels to provide energy for the transportation sector. One of the obstacles cellulosic ethanol must overcome in order to contribute to transportation energy demand is the infrastructure required to produce and distribute the fuel. Given a nascent cellulosic ethanol industry, locating cellulosic ethanol refineries and creating the accompanying infrastructure is essentially a greenfield problem that may benefit greatly from quantitative analysis. This study models cellulosic ethanol infrastructure investment using a mixed integer program (MIP) that locates ethanol refineries and connects these refineries to the biomass supplies and ethanol demands in a way that minimizes the total cost. For the single- and multi-state regions examined in this study, larger facilities can decrease ethanol costs by $0.20-0.30 per gallon, and placing these facilities in locations that minimize feedstock and product transportation costs can decrease ethanol costs by up to $0.25 per gallon compared to uninformed placement that could result from influences such as local subsidies to encourage economic development. To best benefit society, policies should allow for incentives that encourage these low-cost production scenarios and avoid politically motivated siting of plants. - Research highlights: → Mixed-integer programming can be used to model ethanol infrastructure investment. → Large cellulosic ethanol facilities can decrease production cost by $0.20/gallon. → Optimized facility placement can save $0.25/gallon.

METHODOLOGICAL BASES OF PRACTICAL APPLICATION OF PRODUCTION COSTS MANAGEMENT ACCOUNTING AT OIL AND FAT ENTERPRISES

Directory of Open Access Journals (Sweden)

E. Mykhalska

2014-12-01

Full Text Available Implementing of models of production costs management accounting in response to responsibility centers into Ukrainian oil and fat enterprises is the aim of their full optimization in terms of current competitive market. Setting production costs as an object of every single responsibility center will enable to update the whole range of accounting operations on costs paperwork, used raw and other materials assessment, cost recovery from labour costs with benefits-related deduction, depreciation recovery due to season production variability, services distribution of auxiliary and service departments and general production costs. In this regard, referring to the current costs accounting at oil and fat enterprises of Ukraine it should be admitted that the main purpose of the article is to explore the above-mentioned issues.

Productivity costs and determinants of productivity in HIV-infected patients.

Science.gov (United States)

Sendi, Pedram; Schellenberg, Fabian; Ungsedhapand, Chaiwat; Kaufmann, Gilbert R; Bucher, Heiner C; Weber, Rainer; Battegay, Manuel

2004-05-01

In HIV-infected patients, reduced ability to work may be an important component of the societal costs of this disease. Few data about productivity costs in HIV-infected patients are available. The goals of this study were to estimate productivity costs in the HIV-infected population in Switzerland and to identify characteristics that may influence patient productivity. This cross-sectional study included all patients younger than retirement age (65 years for men and 62 years for women) who were enrolled in the Swiss HIV Cohort Study in 2002. Measures of productivity losses in this population were based on patients' ability to work and the median monthly wage rates adjusted for age, sex, and educational level in Switzerland. Factors associated with ability to work were analyzed in a multivariate ordinary logistic regression (proportional odds) model. As of July 1, 2002, the exchange rate for US dollars to Swiss francs (CHF) was US $1.00 approximately equal to CHF 1.48. A total of 5319 HIV-infected patients (3665 men [68.9%] and 1655 women [31.1%]; mean [SD] age, 40.6 [8.4] years; range, 17-64 years) were included in the study. The mean annual productivity loss per patient was estimated at CHF 22,910 (95% CI, CHF 22,064-CHF 23, 756). Ability to work was independently associated with the following (P increase: odds ratio [OR], 0.60 [95% CI, 0.54-0.62]), sex (female/male: OR, 0.73 [95% CI, 0.63-0.84]), history of IV drug use (OR, 0.22 [95% CI, 0.19-0.26]), time since first positive HIV test (>10 years vs or =501 vs 0-200 cells/microL: OR, 2.01 [95%, CI, 1.64-2.46]), history of AIDS-indicator disease (OR, 0.47 [95% CI, 0.41-0.55]), stable partnership during the last 6 months (OR, 1.63 [95% CI, 1.43-1.86]), and educational level (higher vs basic: OR, 1.68 [95% CI, 1.45-1.95]). Productivity losses to society for the HIV-infected population appeared to be substantial in this analysis. Given a patient's clinical health status, a higher education level and a stable

Cost Accounting: Production and Equipment Services.

Science.gov (United States)

Schmid, William T.

Cost accounting for audiovisual productions should include direct costs, and, in some cases, the media administrator may have to calculate a per-hour surcharge for general operating overhead as well. Such procedures enable the administrator to determine cost effectiveness, to control cost overruns, and to generate more staff efficiency. Cost…

Production costs for SRIC Populus biomass

International Nuclear Information System (INIS)

Strauss, C.H.

1991-01-01

Production costs for short rotation, intensive culture (SRIC) Populus biomass were developed from commercial-sized plantations under investigation throughout the US. Populus hybrid planted on good quality agricultural sites at a density of 850 cuttings/acre was projected to yield an average of 7 ovendry (OD) tons/acre/year. Discounted cash-flow analysis of multiple rotations showed preharvest production costs of $14/ton (OD). Harvesting and transportation expenses would increase the delivered cost to $35/ton (OD). Although this total cost compared favorably with the regional market price for aspen (Populus tremuloides), future investments in SRIC systems will require the development of biomass energy markets

Optimal replacement policy of products with repair-cost threshold after the extended warranty

Institute of Scientific and Technical Information of China (English)

Lijun Shang; Zhiqiang Cai

2017-01-01

The reliability of the product sold under a warranty is usually maintained by the manufacturer during the warranty period. After the expiry of the warranty, however, the consumer confronts a problem about how to maintain the reliability of the product. This paper proposes, from the consumer's perspective, a replace-ment policy after the extended warranty, under the assumption that the product is sold under the renewable free replacement warranty (RFRW) policy in which the replacement is dependent on the repair-cost threshold. The proposed replacement policy is the replacement after the extended warranty is performed by the consumer based on the repair-cost threshold or preventive replacement (PR) age, which are decision variables. The expected cost rate model is derived from the consumer's perspective. The existence and uniqueness of the optimal solution that minimizes the expected cost rate per unit time are offered. Finally, a numeri-cal example is presented to exemplify the proposed model.

Productivity Costs in Patients with Refractory Chronic Rhinosinusitis

Science.gov (United States)

Rudmik, Luke; Smith, Timothy L.; Schlosser, Rodney J.; Hwang, Peter H.; Mace, Jess C.; Soler, Zachary M.

2014-01-01

Objective Disease-specific reductions in patient productivity can lead to substantial economic losses to society. The purpose of this study was to: 1) define the annual productivity cost for a patient with refractory chronic rhinosinusitis (CRS) and 2) evaluate the relationship between degree of productivity cost and CRS-specific characteristics. Study Design Prospective, multi-institutional, observational cohort study. Methods The human capital approach was used to define productivity costs. Annual absenteeism, presenteeism, and lost leisure time was quantified to define annual lost productive time (LPT). LPT was monetized using the annual daily wage rates obtained from the 2012 US National Census and the 2013 US Department of Labor statistics. Results A total of 55 patients with refractory CRS were enrolled. The mean work days lost related to absenteeism and presenteeism was 24.6 and 38.8 days per year, respectively. A total of 21.2 household days were lost per year related to daily sinus care requirements. The overall annual productivity cost was $10,077.07 per patient with refractory CRS. Productivity costs increased with worsening disease-specific QoL (r=0.440; p=0.001). Conclusion Results from this study have demonstrated that the annual productivity cost associated with refractory CRS is $10,077.07 per patient. This substantial cost to society provides a strong incentive to optimize current treatment protocols and continue evaluating novel clinical interventions to reduce this cost. PMID:24619604

Productivity costs in patients with refractory chronic rhinosinusitis.

Science.gov (United States)

Rudmik, Luke; Smith, Timothy L; Schlosser, Rodney J; Hwang, Peter H; Mace, Jess C; Soler, Zachary M

2014-09-01

Disease-specific reductions in patient productivity can lead to substantial economic losses to society. The purpose of this study was to: 1) define the annual productivity cost for a patient with refractory chronic rhinosinusitis (CRS) and 2) evaluate the relationship between degree of productivity cost and CRS-specific characteristics. Prospective, multi-institutional, observational cohort study. The human capital approach was used to define productivity costs. Annual absenteeism, presenteeism, and lost leisure time was quantified to define annual lost productive time (LPT). LPT was monetized using the annual daily wage rates obtained from the 2012 U.S. National Census and the 2013 U.S. Department of Labor statistics. A total of 55 patients with refractory CRS were enrolled. The mean work days lost related to absenteeism and presenteeism were 24.6 and 38.8 days per year, respectively. A total of 21.2 household days were lost per year related to daily sinus care requirements. The overall annual productivity cost was $10,077.07 per patient with refractory CRS. Productivity costs increased with worsening disease-specific QoL (r = 0.440; p = 0.001). Results from this study have demonstrated that the annual productivity cost associated with refractory CRS is $10,077.07 per patient. This substantial cost to society provides a strong incentive to optimize current treatment protocols and continue evaluating novel clinical interventions to reduce this cost. © 2014 The American Laryngological, Rhinological and Otological Society, Inc.

Cost-saving production technologies and partial ownership

OpenAIRE

Juan Carlos Barcena-Ruiz; Norma Olaizola

2007-01-01

This work analyzes the incentives to acquire cost-saving production technologies when cross-participation exists at ownership level. We show that cross-participation reduces the incentives to adopt the cost-saving production technology.

Operations and support cost modeling of conceptual space vehicles

Science.gov (United States)

Ebeling, Charles

1994-01-01

The University of Dayton is pleased to submit this annual report to the National Aeronautics and Space Administration (NASA) Langley Research Center which documents the development of an operations and support (O&S) cost model as part of a larger life cycle cost (LCC) structure. It is intended for use during the conceptual design of new launch vehicles and spacecraft. This research is being conducted under NASA Research Grant NAG-1-1327. This research effort changes the focus from that of the first two years in which a reliability and maintainability model was developed to the initial development of an operations and support life cycle cost model. Cost categories were initially patterned after NASA's three axis work breakdown structure consisting of a configuration axis (vehicle), a function axis, and a cost axis. A revised cost element structure (CES), which is currently under study by NASA, was used to established the basic cost elements used in the model. While the focus of the effort was on operations and maintenance costs and other recurring costs, the computerized model allowed for other cost categories such as RDT&E and production costs to be addressed. Secondary tasks performed concurrent with the development of the costing model included support and upgrades to the reliability and maintainability (R&M) model. The primary result of the current research has been a methodology and a computer implementation of the methodology to provide for timely operations and support cost analysis during the conceptual design activities.

A Methodology for Production and Cost Assessment of a Farm of Wave Energy Converters

DEFF Research Database (Denmark)

Beels, C.; Troch, P.; Kofoed, Jens Peter

2011-01-01

to the sea through hydro turbines. It is observed that the cable cost is relatively small compared to the cost of the WD–WECs. As a result, WD–WECs should be installed in a lay-out to increase power production rather than decrease cable cost, taking spatial and safety considerations into account. WD......To generate a substantial amount of power, Wave Energy Converters (WECs) are arranged in several rows or in a ‘farm’. Both the power production and cost of a farm are lay-out dependent. In this paper, the wave power redistribution in and around three farm lay-outs in a near shore North Sea wave...... climate, is assessed numerically using a time-dependent mild-slope equation model. The modelling of the wave power redistribution is an efficient tool to assess the power production of a farm. Further, for each lay-out an optimal (low cost) submarine cable network is designed. The methodology to assess...

Productivity Costs Associated With Breast Cancer Among Survivors Aged 18-44 Years.

Science.gov (United States)

Ekwueme, Donatus U; Trogdon, Justin G; Khavjou, Olga A; Guy, Gery P

2016-02-01

No study has quantified productivity losses associated with breast cancer in younger women aged 18-44 years. This study estimated productivity costs, including work and home productivity losses, among younger women who reported ever receiving a breast cancer diagnosis. A two-part regression model and 2000-2010 National Health Interview Survey data were used to estimate the number of work and home productivity days missed because of breast cancer, adjusted for socioeconomic characteristics and comorbidities. Estimates for younger women were compared with those for women aged 45-64 years. Data were analyzed in 2013-2014. Per capita, younger women with breast cancer had annual losses of $2,293 (95% CI=$1,069, $3,518) from missed work and $442 (95% CI=$161, $723) from missed home productivity. Total annual breast cancer-associated productivity costs for younger women were $344 million (95% CI=$154 million, $535 million). Older women with breast cancer had lower per capita work loss productivity costs of $1,407 (95% CI=$899, $1,915) but higher total work loss productivity costs estimated at $1,072 million (95% CI=$685 million, $1,460 million) than younger women. Younger women with a history of breast cancer face a disproportionate share of work and home productivity losses. Although older women have lower per capita costs, total productivity costs were higher for older women because the number of older women with breast cancer is higher. The results underscore the importance of continued efforts by the public health community to promote and support the unique needs of younger breast cancer survivors. Published by Elsevier Inc.

Quality costs in the production process

OpenAIRE

J. Michalska

2006-01-01

Purpose: The aim of this paper is showing the relationship of the quality costs with a production process. In this paper it was worked out and introduced the way of marking the documents with regard to the quality costs.Design/methodology/approach: In the frames of own research it has been analysed the quality costs in the production process from the documents marked using the worked out way of marking.Findings: On the basis of the own research it can be stated, that the majority of the eleme...

A production model and maintenance planning model for the process industry

NARCIS (Netherlands)

Ashayeri, J.; Teelen, A.; Selen, W.J.

1995-01-01

In this paper a model is developed to simultaneously plan preventive maintenance and production in a process industry environment, where maintenance planning is extremely important. The model schedules production jobs and preventive maintenance jobs, while minimizing costs associated with

H2A Production Model, Version 2 User Guide

Energy Technology Data Exchange (ETDEWEB)

Steward, D.; Ramsden, T.; Zuboy, J.

2008-09-01

The H2A Production Model analyzes the technical and economic aspects of central and forecourt hydrogen production technologies. Using a standard discounted cash flow rate of return methodology, it determines the minimum hydrogen selling price, including a specified after-tax internal rate of return from the production technology. Users have the option of accepting default technology input values--such as capital costs, operating costs, and capacity factor--from established H2A production technology cases or entering custom values. Users can also modify the model's financial inputs. This new version of the H2A Production Model features enhanced usability and functionality. Input fields are consolidated and simplified. New capabilities include performing sensitivity analyses and scaling analyses to various plant sizes. This User Guide helps users already familiar with the basic tenets of H2A hydrogen production cost analysis get started using the new version of the model. It introduces the basic elements of the model then describes the function and use of each of its worksheets.

Economic-Mathematical Modeling of the Impact of the Prime Cost of Products on the Effectiveness of the Activity of Entrepreneurial Establishments

Directory of Open Access Journals (Sweden)

Mihail N. Dudin

2014-09-01

Full Text Available Subject/topic. One of the key elements in managing the operating activity of organizations is managing expenditure, since expenditure, which is payments that need to be effected to be able to engage and retain economic resources, is one of the major factors that determine the organization’s financial results, the cost-effectiveness of capital investments, and, ultimately, the cost of the business. Aim/objectives. This work aims to investigate into the impact of the structure of the product’s prime cost on the indicator of the product’s cost-effectiveness. Methodology. In putting this article together, the author employed such methods of analysis as legal, comparative, economic-statistical, and correlational. Inferences/significance. The practical significance of this work lies in that the author fine-tunes the concept and composition of the prime cost of products and establishes equations for simple linear regression between the share of costs in the composition of the prime cost and the level of cost-effectiveness of the product across various types of economic activity in the Russian Federation (RF in 2012. Knowing the share of costs in the structure of the product’s self-cost across various types of economic activity in the RF in 2012, we shall be able to use the derived models to assess the average level of the product’s cost-effectiveness.

Impact of product configuration systems on product profitability and costing accuracy

DEFF Research Database (Denmark)

Myrodia, Anna; Kristjansdottir, Katrin; Hvam, Lars

2017-01-01

in control of their product assortment, making the right decisions in the sales phase and increasing sales of optimal products. These benefits should have an impact on the company's ability to make more accurate cost estimations in the sales phase, which can positively affect the products’ profitability......This article aims at analyzing the impact of implementing a product configuration system (PCS) on the increased accuracy of the cost calculations and the increased profitability of the products. Companies that have implemented PCSs have achieved substantial benefits in terms of being more...... and after a PCS was implemented. The comparison in the case study revealed that increased accuracy of the cost calculations in the sales phase and consequently increased profitability can be achieved by implementing a PCS....

Production costs of liquid fuels from biomass

International Nuclear Information System (INIS)

Bridgwater, A.V.; Double, J.M.

1994-01-01

This project was undertaken to provide a consistent and thorough review of the full range of processes for producing liquid fuels from biomass to compare both alternative technologies and processes within those technologies in order to identify the most promising opportunities that deserve closer attention. Thermochemical conversion includes both indirect liquefaction through gasification, and direct liquefaction through pyrolysis and liquefaction in pressurized solvents. Biochemical conversion is based on a different set of feedstocks. Both acid and enzyme hydrolysis are included followed by fermentation. The liquid products considered include gasoline and diesel hydrocarbons and conventional alcohol fuels of methanol and ethanol. Results are given both as absolute fuel costs and as a comparison of estimated cost to market price. In terms of absolute fuel costs, thermochemical conversion offers the lowest cost products, with the least complex processes generally having an advantage. Biochemical routes are the least attractive. The most attractive processes from comparing production costs to product values are generally the alcohol fuels which enjoy a higher market value. (author)

Competition between biofuels. Modeling technological learning and cost reductions over time

International Nuclear Information System (INIS)

De Wit, M.; Junginger, M.; Faaij, A.; Lensink, S.M.; Londo, H.M.

2009-10-01

A key aspect in modeling the (future) competition between biofuels is the way in which production cost developments are computed. The objective of this study was threefold: (1) to construct a (endogenous) relation between cost development and cumulative production (2) to implement technological learning based on both engineering study insights and an experience curve approach, and (3) to investigate the impact of different technological learning assumptions on the market diffusion patterns of different biofuels. The analysis was executed with the European biofuel model BioTrans, which computes the least cost biofuel route. The model meets an increasing demand, reaching a 25% share of biofuels of the overall European transport fuel demand by 2030. Results show that 1st generation biodiesel is the most cost competitive fuel, dominating the early market. With increasing demand, modestly productive oilseed crops become more expensive rapidly, providing opportunities for advanced biofuels to enter the market. While biodiesel supply typically remains steady until 2030, almost all additional yearly demands are delivered by advanced biofuels, supplying up to 60% of the market by 2030. Sensitivity analysis shows that (a) overall increasing investment costs favour biodiesel production, (b) separate gasoline and diesel subtargets may diversify feedstock production and technology implementation, thus limiting the risk of failure and preventing lock-in and (c) the moment of an advanced technology's commercial market introduction determines, to a large degree, its future chances for increasing market share.

Optimal Vehicle Design Using the Integrated System and Cost Modeling Tool Suite

Science.gov (United States)

2010-08-01

Space Vehicle Costing ( ACEIT ) • New Small Sat Model Development & Production Cost O&M Cost Module  Radiation Exposure  Radiation Detector Response...Reliability OML Availability Risk l l Tools CEA, SRM Model, POST, ACEIT , Inflation Model, Rotor Blade Des, Microsoft Project, ATSV, S/1-iABP...space STK, SOAP – Specific mission • Space Vehicle Design (SMAD) • Space Vehicle Propulsion • Orbit Propagation • Space Vehicle Costing ( ACEIT ) • New

Production Functions for Water Delivery Systems: Analysis and Estimation Using Dual Cost Function and Implicit Price Specifications

Science.gov (United States)

Teeples, Ronald; Glyer, David

1987-05-01

Both policy and technical analysis of water delivery systems have been based on cost functions that are inconsistent with or are incomplete representations of the neoclassical production functions of economics. We present a full-featured production function model of water delivery which can be estimated from a multiproduct, dual cost function. The model features implicit prices for own-water inputs and is implemented as a jointly estimated system of input share equations and a translog cost function. Likelihood ratio tests are performed showing that a minimally constrained, full-featured production function is a necessary specification of the water delivery operations in our sample. This, plus the model's highly efficient and economically correct parameter estimates, confirms the usefulness of a production function approach to modeling the economic activities of water delivery systems.

Chain Risk Model for quantifying cost effectiveness of phytosanitary measures

NARCIS (Netherlands)

Benninga, J.; Hennen, W.H.G.J.; Schans, van de J.

2010-01-01

A Chain Risk Model (CRM) was developed for a cost effective assessment of phytosanitary measures. The CRM model can be applied to phytosanitary assessments of all agricultural product chains. In CRM, stages are connected by product volume flows with which pest infections can be spread from one stage

PV O&M Cost Model and Cost Reduction

Energy Technology Data Exchange (ETDEWEB)

Walker, Andy

2017-03-15

This is a presentation on PV O&M cost model and cost reduction for the annual Photovoltaic Reliability Workshop (2017), covering estimating PV O&M costs, polynomial expansion, and implementation of Net Present Value (NPV) and reserve account in cost models.

Modeling the cost of shut-in production and the value of information in the Gulf of Mexico

International Nuclear Information System (INIS)

Kaiser, Mark J.; Pulsipher, Allan G.

2006-01-01

Weather delay is a common risk in offshore energy production, and in the Gulf of Mexico, the occurrence of tropical storms and hurricanes regularly force operators to shut-down production, cease drilling and construction activities, and evacuate personnel. In physical terms, shutting-in a well will usually not cause a loss of the hydrocarbon resource, but in financial terms, the impact of deferred production can have a significant economic effect. Improved ocean observation systems in the Gulf of Mexico are expected to enhance the reliability and accuracy of hurricane forecasting, lowering the probabilities of false positives, and positively impacting the economic and human life consequences. Improved information reduces risk, and to the extent that operators are risk averse, enhanced information increases welfare. The purpose of this paper is to provide a methodological framework to estimate the cost of shut-in production due to extreme weather, and to provide a first-order lower-bound estimate of the market value of improved weather forecasting. Shut-in production is modeled using various recovery scenarios and valued in terms of the cash flow analysis over the life of the asset. A description of the valuation model and the nature of production recovery is outlined and illustrated through stylized examples. (author)

Lean Manufacturing Implementation: an Approach to Reduce Production Cost

Directory of Open Access Journals (Sweden)

Iraswari

2012-04-01

Full Text Available Abstract: Lean Manufacturing Implementation: An Approach To Reduce Production Cost. Opportunities to improve production processes and reduce production cost through the implementation of lean manufacturing in small medium garment manufacturing are presented in this research. This research shows that there is a possibility of decrease in production cost and increase in return on sales. Lean manufacturing implementation can eliminate waste in the production process. This is a set of techniques for identification and elimination of waste gathered from The Ford Production, Statistical Process Control and other techniques. Improvement of quality could be carried out while time and cost of production are being reduced.

Cost Decision Support in Product Design

NARCIS (Netherlands)

Liebers, A.; Kals, H.J.J.

1997-01-01

The constraints addressed in decision making during product design, process planning and production planning determine the admissible solution space for the manufacture of products. The solution space determines largely the costs that are incurred in the production process. In order to be able to

Joint pricing and production management: a geometric programming approach with consideration of cubic production cost function

Science.gov (United States)

Sadjadi, Seyed Jafar; Hamidi Hesarsorkh, Aghil; Mohammadi, Mehdi; Bonyadi Naeini, Ali

2015-06-01

Coordination and harmony between different departments of a company can be an important factor in achieving competitive advantage if the company corrects alignment between strategies of different departments. This paper presents an integrated decision model based on recent advances of geometric programming technique. The demand of a product considers as a power function of factors such as product's price, marketing expenditures, and consumer service expenditures. Furthermore, production cost considers as a cubic power function of outputs. The model will be solved by recent advances in convex optimization tools. Finally, the solution procedure is illustrated by numerical example.

Global Approximations to Cost and Production Functions using Artificial Neural Networks

Directory of Open Access Journals (Sweden)

Efthymios G. Tsionas

2009-06-01

Full Text Available The estimation of cost and production functions in economics relies on standard specifications which are less than satisfactory in numerous situations. However, instead of fitting the data with a pre-specified model, Artificial Neural Networks (ANNs let the data itself serve as evidence to support the modelrs estimation of the underlying process. In this context, the proposed approach combines the strengths of economics, statistics and machine learning research and the paper proposes a global approximation to arbitrary cost and production functions, respectively, given by ANNs. Suggestions on implementation are proposed and empirical application relies on standard techniques. All relevant measures such as Returns to Scale (RTS and Total Factor Productivity (TFP may be computed routinely.

Analyzing cost efficient production behavior under economies of scope : A nonparametric methodology

NARCIS (Netherlands)

Cherchye, L.J.H.; de Rock, B.; Vermeulen, F.M.P.

2008-01-01

In designing a production model for firms that generate multiple outputs, we take as a starting point that such multioutput production refers to economies of scope, which in turn originate from joint input use and input externalities. We provide a nonparametric characterization of cost-efficient

Cost Model for Digital Preservation: Cost of Digital Migration

Directory of Open Access Journals (Sweden)

Ulla Bøgvad Kejser

2011-03-01

Full Text Available The Danish Ministry of Culture has funded a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project was to increase cost effectiveness of digital preservation activities and to provide a basis for comparing and estimating future cost requirements for digital preservation. In this study we describe an activity-based costing methodology for digital preservation based on the Open Archice Information System (OAIS Reference Model. Within this framework, which we denote the Cost Model for Digital Preservation (CMDP, the focus is on costing the functional entity Preservation Planning from the OAIS and digital migration activities. In order to estimate these costs we have identified cost-critical activities by analysing the functions in the OAIS model and the flows between them. The analysis has been supplemented with findings from the literature, and our own knowledge and experience. The identified cost-critical activities have subsequently been deconstructed into measurable components, cost dependencies have been examined, and the resulting equations expressed in a spreadsheet. Currently the model can calculate the cost of different migration scenarios for a series of preservation formats for text, images, sound, video, geodata, and spreadsheets. In order to verify the model it has been tested on cost data from two different migration projects at the Danish National Archives (DNA. The study found that the OAIS model provides a sound overall framework for the cost breakdown, but that some functions need additional detailing in order to cost activities accurately. Running the two sets of empirical data showed among other things that the model underestimates the cost of manpower-intensive migration projects, while it reinstates an often underestimated cost, which is the cost of developing migration software. The model has proven useful for estimating the

Documentation of the Resource Allocation and Mine Costing (RAMC) model (Methodology description)

International Nuclear Information System (INIS)

1992-01-01

The RAMC is used to develop coal supply curves for EIA's coal supply models. It can be used to analyze the impact of changes in coal supply or costs resulting from changes in taxes, production and preparation costs, productivity, coal reserves, and other supply-related factors

Cost minimization in a full-scale conventional wastewater treatment plant: associated costs of biological energy consumption versus sludge production.

Science.gov (United States)

Sid, S; Volant, A; Lesage, G; Heran, M

2017-11-01

Energy consumption and sludge production minimization represent rising challenges for wastewater treatment plants (WWTPs). The goal of this study is to investigate how energy is consumed throughout the whole plant and how operating conditions affect this energy demand. A WWTP based on the activated sludge process was selected as a case study. Simulations were performed using a pre-compiled model implemented in GPS-X simulation software. Model validation was carried out by comparing experimental and modeling data of the dynamic behavior of the mixed liquor suspended solids (MLSS) concentration and nitrogen compounds concentration, energy consumption for aeration, mixing and sludge treatment and annual sludge production over a three year exercise. In this plant, the energy required for bioreactor aeration was calculated at approximately 44% of the total energy demand. A cost optimization strategy was applied by varying the MLSS concentrations (from 1 to 8 gTSS/L) while recording energy consumption, sludge production and effluent quality. An increase of MLSS led to an increase of the oxygen requirement for biomass aeration, but it also reduced total sludge production. Results permit identification of a key MLSS concentration allowing identification of the best compromise between levels of treatment required, biological energy demand and sludge production while minimizing the overall costs.

Analyzing Cost Efficient Production Behavior Under Economies of Scope : A Nonparametric Methodology

NARCIS (Netherlands)

Cherchye, L.J.H.; de Rock, B.; Vermeulen, F.M.P.

2006-01-01

In designing a production model for firms that generate multiple outputs, we take as a starting point that such multi-output production refers to economies of scope, which in turn originate from joint input use and input externalities. We provide a nonparametric characterization of cost efficient

Cost evaluation of cellulase enzyme for industrial-scale cellulosic ethanol production based on rigorous Aspen Plus modeling.

Science.gov (United States)

Liu, Gang; Zhang, Jian; Bao, Jie

2016-01-01

Cost reduction on cellulase enzyme usage has been the central effort in the commercialization of fuel ethanol production from lignocellulose biomass. Therefore, establishing an accurate evaluation method on cellulase enzyme cost is crucially important to support the health development of the future biorefinery industry. Currently, the cellulase cost evaluation methods were complicated and various controversial or even conflict results were presented. To give a reliable evaluation on this important topic, a rigorous analysis based on the Aspen Plus flowsheet simulation in the commercial scale ethanol plant was proposed in this study. The minimum ethanol selling price (MESP) was used as the indicator to show the impacts of varying enzyme supply modes, enzyme prices, process parameters, as well as enzyme loading on the enzyme cost. The results reveal that the enzyme cost drives the cellulosic ethanol price below the minimum profit point when the enzyme is purchased from the current industrial enzyme market. An innovative production of cellulase enzyme such as on-site enzyme production should be explored and tested in the industrial scale to yield an economically sound enzyme supply for the future cellulosic ethanol production.

Computational Modelling of Large Scale Phage Production Using a Two-Stage Batch Process

Directory of Open Access Journals (Sweden)

Konrad Krysiak-Baltyn

2018-04-01

Full Text Available Cost effective and scalable methods for phage production are required to meet an increasing demand for phage, as an alternative to antibiotics. Computational models can assist the optimization of such production processes. A model is developed here that can simulate the dynamics of phage population growth and production in a two-stage, self-cycling process. The model incorporates variable infection parameters as a function of bacterial growth rate and employs ordinary differential equations, allowing application to a setup with multiple reactors. The model provides simple cost estimates as a function of key operational parameters including substrate concentration, feed volume and cycling times. For the phage and bacteria pairing examined, costs and productivity varied by three orders of magnitude, with the lowest cost found to be most sensitive to the influent substrate concentration and low level setting in the first vessel. An example case study of phage production is also presented, showing how parameter values affect the production costs and estimating production times. The approach presented is flexible and can be used to optimize phage production at laboratory or factory scale by minimizing costs or maximizing productivity.

Analysis of the influence of advanced materials for aerospace products R&D and manufacturing cost

Science.gov (United States)

Shen, A. W.; Guo, J. L.; Wang, Z. J.

2015-12-01

In this paper, we pointed out the deficiency of traditional cost estimation model about aerospace products Research & Development (R&D) and manufacturing based on analyzing the widely use of advanced materials in aviation products. Then we put up with the estimating formulas of cost factor, which representing the influences of advanced materials on the labor cost rate and manufacturing materials cost rate. The values ranges of the common advanced materials such as composite materials, titanium alloy are present in the labor and materials two aspects. Finally, we estimate the R&D and manufacturing cost of F/A-18, F/A- 22, B-1B and B-2 aircraft based on the common DAPCA IV model and the modified model proposed by this paper. The calculation results show that the calculation precision improved greatly by the proposed method which considering advanced materials. So we can know the proposed method is scientific and reasonable.

COST MEASUREMENT AND COST MANAGEMENT IN TARGET COSTING

Directory of Open Access Journals (Sweden)

Moisello Anna Maria

2012-07-01

Full Text Available Firms are coping with a competitive scenario characterized by quick changes produced by internationalization, concentration, restructuring, technological innovation processes and financial market crisis. On the one hand market enlargement have increased the number and the segmentation of customers and have raised the number of competitors, on the other hand technological innovation has reduced product life cycle. So firms have to adjust their management models to this scenario, pursuing customer satisfaction and respecting cost constraints. In a context where price is a variable fixed by the market, firms have to switch from the cost measurement logic to the cost management one, adopting target costing methodology. The target costing process is a price driven, customer oriented profit planning and cost management system. It works, in a cross functional way, from the design stage throughout all the product life cycle and it involves the entire value chain. The process implementation needs a costing methodology consistent with the cost management logic. The aim of the paper is to focus on Activity Based Costing (ABC application to target costing process. So: -it analyzes target costing logic and phases, basing on a literary review, in order to highlight the costing needs related to this process; -it shows, through a numerical example, how to structure a flexible ABC model – characterized by the separation between variable, fixed in the short and fixed costs - that effectively supports target costing process in the cost measurement phase (drifting cost determination and in the target cost alignment; -it points out the effectiveness of the Activity Based Costing as a model of cost measurement applicable to the supplier choice and as a support for supply cost management which have an important role in target costing process. The activity based information allows a firm to optimize the supplier choice by following the method of minimizing the

A fast-response production-inventory model for deteriorating seasonal products with learning in set-ups

Directory of Open Access Journals (Sweden)

Ibraheem Abdul

2011-10-01

Full Text Available The classical production-inventory model assumes that both demand and set-up costs are constant. However, in real manufacturing environment, managers usually embark on continuous improvement programmes that often lead to more effective use of tools and machineries and consequently reduction in set-up costs. In fact, constant emphasis on reduction of set-up costs is usually cited as one of the factors responsible for the efficiency of Japanese manufacturing methods. On the other hand, the demand for seasonal product is often characterized by a mixture of time-dependent patterns over the entire season. This paper investigates the effect of learning-based reduction in set-up costs on the optimal schedules and costs of a production-inventory system for deteriorating seasonal products. The demand pattern is a general three-phase ramp-type demand function that represents the various phases of demand commonly observed in many seasonal products in the market. A two-parameter Weibull-distribution function is used for the deterioration of items in order to make the model more generalized and realistic. The study further presents two different multi-period production strategies that can ensure a fast-response to customers’ demand and compare them with the usual single period strategy. The Numerical example and sensitivity analysis shows that learning-based reduction in set-up costs leads to higher production frequency and shorter production runs which are vital aspects of the just-in-time (JIT philosophy.

A Costing Analysis for Decision Making Grid Model in Failure-Based Maintenance

OpenAIRE

M. A., Burhanuddin; Halawani, Sami M.; Ahmad, A. R.

2011-01-01

Background. In current economic downturn, industries have to set good control on production cost, to maintain their profit margin. Maintenance department as an imperative unit in industries should attain all maintenance data, process information instantaneously, and subsequently transform it into a useful decision. Then act on the alternative to reduce production cost. Decision Making Grid model is used to identify strategies for maintenance decision. However, the model has limitation as it c...

Application of cost mathematical models to the determination of investments in the petroleum industry

International Nuclear Information System (INIS)

Fournier, G.

1997-05-01

It is today of paramount importance to realistically forecast the cost and time required to design and manufacture a given product, from the very first phase of the project. Furthermore, with the increasingly rapid development of technology, it is often impossible to draw a direct parallel with existing, well known products Mathematical models of cost, and MAP models in particular, have been developed to meet this need. Although one may still refer to former products, they do not automatically have to be 'analogous' to the product under consideration, because these methods use 'universal relationship' between cost, weight, technology, performance and reliability, and also the nature and experience of the firm manufacturing the product. The purpose of this thesis is to demonstrate the pertinence, and more importantly the potential, of mathematical models of cost for the oil and gas industry, from exploration and production to refining, petrochemicals, and internal combustion engines. After a theoretical examination of estimation methods and a classification of existing ones, emphasis is placed on the logical aspect of these models. In addition, the complementarity between these tools and certain fields such as project management is pointed out, for example with respect to value control. The last chapter of the thesis is devoted to case studies. It aims chiefly at comparing theory with practice in order to identify the limits of mathematical models of cost so that they can be used judiciously. (author)

A model for energy pricing with stochastic emission costs

International Nuclear Information System (INIS)

Elliott, Robert J.; Lyle, Matthew R.; Miao, Hong

2010-01-01

We use a supply-demand approach to value energy products exposed to emission cost uncertainty. We find closed form solutions for a number of popularly traded energy derivatives such as: forwards, European call options written on spot prices and European Call options written on forward contracts. Our modeling approach is to first construct noisy supply and demand processes and then equate them to find an equilibrium price. This approach is very general while still allowing for sensitivity analysis within a valuation setting. Our assumption is that, in the presence of emission costs, traditional supply growth will slow down causing output prices of energy products to become more costly over time. However, emission costs do not immediately cause output price appreciation, but instead expose individual projects, particularly those with high emission outputs, to much more extreme risks through the cost side of their profit stream. Our results have implications for hedging and pricing for producers operating in areas facing a stochastic emission cost environment. (author)

Preliminary Cost Estimates for Nuclear Hydrogen Production: HTSE System

International Nuclear Information System (INIS)

Yang, K. J.; Lee, K. Y.; Lee, T. H.

2008-01-01

KAERI is now focusing on the research and development of the key technologies required for the design and realization of a nuclear hydrogen production system. As a preliminary study of cost estimates for nuclear hydrogen systems, the hydrogen production costs of the nuclear energy sources benchmarking GTMHR and PBMR are estimated in the necessary input data on a Korean specific basis. G4-ECONS was appropriately modified to calculate the cost for hydrogen production of HTSE (High Temperature Steam Electrolysis) process with VHTR (Very High Temperature nuclear Reactor) as a thermal energy source. The estimated costs presented in this paper show that hydrogen production by the VHTR could be competitive with current techniques of hydrogen production from fossil fuels if CO 2 capture and sequestration is required. Nuclear production of hydrogen would allow large-scale production of hydrogen at economic prices while avoiding the release of CO 2 . Nuclear production of hydrogen could thus become the enabling technology for the hydrogen economy. The major factors that would affect the cost of hydrogen were also discussed

A GIS cost model to assess the availability of freshwater, seawater, and saline groundwater for algal biofuel production in the United States.

Science.gov (United States)

Venteris, Erik R; Skaggs, Richard L; Coleman, Andre M; Wigmosta, Mark S

2013-05-07

A key advantage of using microalgae for biofuel production is the ability of some algal strains to thrive in waters unsuitable for conventional crop irrigation such as saline groundwater or seawater. Nonetheless, the availability of sustainable water supplies will provide significant challenges for scale-up and development of algal biofuels. We conduct a partial techno-economic assessment based on the availability of freshwater, saline groundwater, and seawater for use in open pond algae cultivation systems. We explore water issues through GIS-based models of algae biofuel production, freshwater supply (constrained to less than 5% of mean annual flow per watershed) and costs, and cost-distance models for supplying seawater and saline groundwater. We estimate that, combined, these resources can support 9.46 × 10(7) m(3) yr(-1) (25 billion gallons yr(-1)) of renewable biodiesel production in the coterminous United States. Achievement of larger targets requires the utilization of less water efficient sites and relatively expensive saline waters. Despite the addition of freshwater supply constraints and saline water resources, the geographic conclusions are similar to our previous results. Freshwater availability and saline water delivery costs are most favorable for the coast of the Gulf of Mexico and Florida peninsula, where evaporation relative to precipitation is moderate. As a whole, the barren and scrub lands of the southwestern U.S. have limited freshwater supplies, and large net evaporation rates greatly increase the cost of saline alternatives due to the added makeup water required to maintain pond salinity. However, this and similar analyses are particularly sensitive to knowledge gaps in algae growth/lipid production performance and the proportion of freshwater resources available, key topics for future investigation.

Cost Analysis of Direct Methanol Fuel Cell Stacks for Mass Production

Directory of Open Access Journals (Sweden)

Mauro Francesco Sgroi

2016-11-01

Full Text Available Fuel cells are very promising technologies for efficient electrical energy generation. The development of enhanced system components and new engineering solutions is fundamental for the large-scale deployment of these devices. Besides automotive and stationary applications, fuel cells can be widely used as auxiliary power units (APUs. The concept of a direct methanol fuel cell (DMFC is based on the direct feed of a methanol solution to the fuel cell anode, thus simplifying safety, delivery, and fuel distribution issues typical of conventional hydrogen-fed polymer electrolyte fuel cells (PEMFCs. In order to evaluate the feasibility of concrete application of DMFC devices, a cost analysis study was carried out in the present work. A 200 W-prototype developed in the framework of a European Project (DURAMET was selected as the model system. The DMFC stack had a modular structure allowing for a detailed evaluation of cost characteristics related to the specific components. A scale-down approach, focusing on the model device and projected to a mass production, was used. The data used in this analysis were obtained both from research laboratories and industry suppliers specialising in the manufacturing/production of specific stack components. This study demonstrates that mass production can give a concrete perspective for the large-scale diffusion of DMFCs as APUs. The results show that the cost derived for the DMFC stack is relatively close to that of competing technologies and that the introduction of innovative approaches can result in further cost savings.

Evaluation of syngas production unit cost of bio-gasification facility using regression analysis techniques

Energy Technology Data Exchange (ETDEWEB)

Deng, Yangyang; Parajuli, Prem B.

2011-08-10

Evaluation of economic feasibility of a bio-gasification facility needs understanding of its unit cost under different production capacities. The objective of this study was to evaluate the unit cost of syngas production at capacities from 60 through 1800Nm 3/h using an economic model with three regression analysis techniques (simple regression, reciprocal regression, and log-log regression). The preliminary result of this study showed that reciprocal regression analysis technique had the best fit curve between per unit cost and production capacity, with sum of error squares (SES) lower than 0.001 and coefficient of determination of (R 2) 0.996. The regression analysis techniques determined the minimum unit cost of syngas production for micro-scale bio-gasification facilities of $0.052/Nm 3, under the capacity of 2,880 Nm 3/h. The results of this study suggest that to reduce cost, facilities should run at a high production capacity. In addition, the contribution of this technique could be the new categorical criterion to evaluate micro-scale bio-gasification facility from the perspective of economic analysis.

Comparison study on models for calculation of NPP’s levelized unit electricity cost

International Nuclear Information System (INIS)

Nuryanti; Mochamad Nasrullah; Suparman

2014-01-01

Economic analysis that is generally done through the calculation of Levelized Unit Electricity Cost (LUEC) is crucial to be done prior to any investment decision on the nuclear power plant (NPP) project. There are several models that can be used to calculate LUEC, which are: R&D PT. PLN (Persero) Model, Mini G4ECONS model and Levelized Cost model. This study aimed to perform a comparison between the three models. Comparison technique was done by tracking the similarity used for each model and then given a case of LUEC calculation for SMR NPP 2 x 100 MW using these models. The result showed that the R&D PT. PLN (Persero) Model have a common principle with Mini G4ECONS model, which use Capital Recovery Factor (CRF) to discount the investment cost which eventually become annuity value along the life of plant. LUEC on both models is calculated by dividing the sum of the annual investment cost and the cost for operating NPP with an annual electricity production.While Levelized Cost model based on the annual cash flow. Total of annual costs and annual electricity production were discounted to the first year of construction in order to obtain the total discounted annual cost and the total discounted energy generation. LUEC was obtained by dividing both of the discounted values. LUEC calculations on the three models produce LUEC value, which are: 14.5942 cents US$/kWh for R&D PT. PLN (Persero) Model, 15.056 cents US$/kWh for Mini G4ECONs model and 14.240 cents US$/kWh for Levelized Cost model. (author)

HTGR Cost Model Users' Manual

International Nuclear Information System (INIS)

Gandrik, A.M.

2012-01-01

The High Temperature Gas-Cooler Reactor (HTGR) Cost Model was developed at the Idaho National Laboratory for the Next Generation Nuclear Plant Project. The HTGR Cost Model calculates an estimate of the capital costs, annual operating and maintenance costs, and decommissioning costs for a high-temperature gas-cooled reactor. The user can generate these costs for multiple reactor outlet temperatures; with and without power cycles, including either a Brayton or Rankine cycle; for the demonstration plant, first of a kind, or nth of a kind project phases; for a single or four-pack configuration; and for a reactor size of 350 or 600 MWt. This users manual contains the mathematical models and operating instructions for the HTGR Cost Model. Instructions, screenshots, and examples are provided to guide the user through the HTGR Cost Model. This model was design for users who are familiar with the HTGR design and Excel. Modification of the HTGR Cost Model should only be performed by users familiar with Excel and Visual Basic.

Production costs: U.S. gas turbine ampersand combined-cycle power plants

International Nuclear Information System (INIS)

Anon.

1992-01-01

This fourth edition of UDI's gas turbine O ampersand M cost report gives 1991 operation and maintenance expenses for over 450 US gas turbine power plants. Modeled on UDI's popular series of O ampersand M cost reports for US steam-electric plants, this report shows operator and plant name, plant year-in-service, installed capacity, 1991 net generation, total fuel expenses, total non-fuel O ampersand M expenses, total production costs, and current plant capitalization. Coverage includes over 90 percent of the utility-owned gas/combustion turbine and combined-cycle plants installed in the country

Cost Model for Digital Preservation: Cost of Digital Migration

DEFF Research Database (Denmark)

Kejser, Ulla Bøgvad; Nielsen, Anders Bo; Thirifays, Alex

2011-01-01

The Danish Ministry of Culture has funded a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project was to increase cost effectiveness of digital preservation activities and to provide a basis...... for comparing and estimating future cost requirements for digital preservation. In this study we describe an activity-based costing methodology for digital preservation based on the Open Archice Information System (OAIS) Reference Model. Within this framework, which we denote the Cost Model for Digital...... Preservation (CMDP), the focus is on costing the functional entity Preservation Planning from the OAIS and digital migration activities. In order to estimate these costs we have identified cost-critical activities by analysing the functions in the OAIS model and the flows between them. The analysis has been...

CONSOLIDATED COST ACCOUNTING AT MEAT AND FAT PRODUCTION: METHODOLOGY AND PRACTICE

Directory of Open Access Journals (Sweden)

Volodymyr Kushnir

2017-08-01

Full Text Available Aim of the article is to study and improve methods of consolidated cost accounting at meat and fat production to obtain detailed information about production costs and to find ways to reduce the cost of meat production. It is offered to account expenses at meat and fat department for individual production areas that will receive detailed information for the purposes of control, analysis, calculation and reporting. For expedient budgeting activities of each structural unit of meat and fat production and for needs to saving production is proposed to reflect the costs of each production plant to separate groups of analytical accounts. Key words: consolidated accounting, production costs of meat and fat production, cost accounting.

Visual representation of costs in the productive process: a case study on a footwear industry in Portugal

Directory of Open Access Journals (Sweden)

Levi da Silva Guimarães

2015-12-01

Full Text Available Over the last decades, conventional production systems have gone through changes in the face of intensified competition among companies. The occurrence of these changes has boosted the development of decision-making assistance tools for the production systems. However, most of these instruments do not allow the visualization of the costs involved throughout industrial operations. This study comprises the integration of the "Waste Identification Diagrams" (WID, current tool for visualization and analysis of production processes, along with "Time-Driven Activity-Based Costing" (TDABC, strategic management cost tool, seeking to create a model that visually demonstrates waste and relate its occurrence to operating costs. For that, the research adopted a descriptive-exploratory approach, based on a case study carried out in a footwear industry. The analysis showed that the integration of tools allowed for the representation of costs based on the time equations from the TDABC, associated with the visualization of the production process by the WID. The study concludes that the WID can be integrated to the TDABC tool, creating a management model for making decisions based on the operating costs of the production process.

The Structured Intuitive Model for Product Line Economics (SIMPLE)

National Research Council Canada - National Science Library

Clements, Paul C; McGregor, John D; Cohen, Sholom G

2005-01-01

.... This report presents the Structured Intuitive Model of Product Line Economics (SIMPLE), a general-purpose business model that supports the estimation of the costs and benefits in a product line development organization...

Cost allocation. Combined heat and power production

International Nuclear Information System (INIS)

Sidzikauskas, V.

2002-01-01

The benefits of Combined Heat and Power (CHP) generation are discussed. The include improvement in energy intensity of 1% by 2010, 85-90% efficiency versus 40-50% of condensation power and others. Share of CHP electricity production in ERRA countries is presented.Solutions for a development CHP cost allocation are considered. Conclusion are presented for CHP production cost allocation. (R.P.)

A Departmental Cost-Effectiveness Model.

Science.gov (United States)

Holleman, Thomas, Jr.

In establishing a departmental cost-effectiveness model, the traditional cost-effectiveness model was discussed and equipped with a distant and deflation equation for both benefits and costs. Next, the economics of costing was examined and program costing procedures developed. Then, the model construct was described as it was structured around the…

Statistical Model Checking for Product Lines

DEFF Research Database (Denmark)

ter Beek, Maurice H.; Legay, Axel; Lluch Lafuente, Alberto

2016-01-01

average cost of products (in terms of the attributes of the products’ features) and the probability of features to be (un)installed at runtime. The product lines must be modelled in QFLan, which extends the probabilistic feature-oriented language PFLan with novel quantitative constraints among features...

Cost Estimates Of Concentrated Photovoltaic Heat Sink Production

Science.gov (United States)

2016-06-01

PV), return on investment (ROI) 15. NUMBER OF PAGES 59 16. PRICE CODE 17. SECURITY CLASSIFICATION OF REPORT Unclassified 18. SECURITY...improvements increase overall system returns on investment and 11 provide pathways for further reduction in system costs (Phillips et al., 2015). Phillips...generation. As the CPV market has matured, production costs have come down to near flat-panel photovoltaic (PV) production costs. CPV units

Model for economical analysis of oil and gas deepwater production concepts : Comparisons of life cycle cost of subsea production systems vs. floating structures with dry wellheads.

OpenAIRE

Romero Mata, Omar

2010-01-01

Master's thesis in Offshore technology The scope of the work was to create a model that will allow the comparison of Life Cycle Costs (LCC) for subsea production systems and floating structures with dry wellheads for the Mexican territorial waters of the Gulf of Mexico. To give validity to the model, an empirical comparison on the resulting recovery factor based on data of the US Gulf of Mexico was included. This comparison is intended to answer ¿Is there a significant diffe...

COST OF PRODUCTION, GROSS RETURN AND NET PROFIT IN COMMERCIAL EGG PRODUCTION

Directory of Open Access Journals (Sweden)

M. Farooq, Zahoor-ul-Haq1, M.A. Mian, F.R. Durrani and M. Syed

2003-01-01

Full Text Available The present study was carried out in Chakwal, Pakistan by collecting data from randomly selected 109 flocks to investigate cost of production, gross return and net profit per layer. Majority of the buildings in the study area were rented therefore, rent per layer was added to the total cost of production instead of depreciation on building and equipments. Overall total cost of production, gross return and net profit per layer was Rs. 393.88 ± 5.36, 432.14 ± 8.01 and 38.26 ± 6.66, respectively. Rate of return over the invested capital was 27%. Mean feed cost per layer was Rs. 302.23 ± 5.01, including Rs. 10.27 ± 0.24, 29.19 ± 0.42 and 262.77 ± 5.08 for starter, grower and layer ration, respectively. Feed cost was the major component contributing 76.73% to the total cost of production. Average cost of labor, day-old chick, building rent, vaccination, therapy, miscellaneous item, electricity, bedding material and transportation was Rs. 19.90 ± 0.45, 19.75 ± 0.05, 16.25 ± 0.26, 12.80 ± 0.10, 10.90 ± 2.32, 4.35 ± 0.09, 3.15 ± 0.07, 2.65 ± 0.09 and 1.90 ± 0.08, respectively, contributing 5.05, 5.01, 4.13, 3.25, 2.77, 1.10, 0.80, 0.67 and 0.48 % to the total cost of production. Gross return from the sale of marketable eggs, culled eggs, spent/culled bird, empty bags and manure was Rs. 388.84 ± 7.91, 3.85 ± 0.01, 35.80 ± 0.23, 2.20 ± 0.04 and 1.45 ± 0.01, respectively, contributing 89.98, 0.89, 8.28, 0.51 and 0.34% to the total return. Determining the effect of different parameters on the cost of production and net profit, large flocks, Hisex strain, brood-grow and lay system of rearing, good hygienic conditions of the farm, normal stocking rate and cage system of housing wee found to give maximum gross return as well as net profit.

Optimum profit model considering production, quality and sale problem

Science.gov (United States)

Chen, Chung-Ho; Lu, Chih-Lun

2011-12-01

Chen and Liu ['Procurement Strategies in the Presence of the Spot Market-an Analytical Framework', Production Planning and Control, 18, 297-309] presented the optimum profit model between the producers and the purchasers for the supply chain system with a pure procurement policy. However, their model with a simple manufacturing cost did not consider the used cost of the customer. In this study, the modified Chen and Liu's model will be addressed for determining the optimum product and process parameters. The authors propose a modified Chen and Liu's model under the two-stage screening procedure. The surrogate variable having a high correlation with the measurable quality characteristic will be directly measured in the first stage. The measurable quality characteristic will be directly measured in the second stage when the product decision cannot be determined in the first stage. The used cost of the customer will be measured by adopting Taguchi's quadratic quality loss function. The optimum purchaser's order quantity, the producer's product price and the process quality level will be jointly determined by maximising the expected profit between them.

Implementation of a cost-accounting model in a biobank: practical implications.

Science.gov (United States)

Gonzalez-Sanchez, Maria Beatriz; Lopez-Valeiras, Ernesto; García-Montero, Andres C

2014-01-01

Given the state of global economy, cost measurement and control have become increasingly relevant over the past years. The scarcity of resources and the need to use these resources more efficiently is making cost information essential in management, even in non-profit public institutions. Biobanks are no exception. However, no empirical experiences on the implementation of cost accounting in biobanks have been published to date. The aim of this paper is to present a step-by-step implementation of a cost-accounting tool for the main production and distribution activities of a real/active biobank, including a comprehensive explanation on how to perform the calculations carried out in this model. Two mathematical models for the analysis of (1) production costs and (2) request costs (order management and sample distribution) have stemmed from the analysis of the results of this implementation, and different theoretical scenarios have been prepared. Global analysis and discussion provides valuable information for internal biobank management and even for strategic decisions at the research and development governmental policies level.

Technical and economic modelling of processes for liquid fuel production in Europe

International Nuclear Information System (INIS)

Bridgwater, A.V.; Double, J.M.

1991-01-01

The project which is described had the objective of examining the full range of technologies for liquid fuel production from renewable feedstocks in a technical and economic evaluation in order to identify the most promising technologies. The technologies considered are indirect thermochemical liquefaction (i.e. via gasification) to produce methanol, fuel alcohol or hydrocarbon fuels, direct thermochemical liquefaction or pyrolysis to produce hydrocarbon fuels and fermentation to produce ethanol. Feedstocks considered were wood, refuse derived fuel, straw, wheat and sugar beet. In order to carry out the evaluation, a computer model was developed, based on a unit process approach. Each unit operation is modelled as a process step, the model calculating the mass balance, energy balance and operating cost of the unit process. The results from the process step models are then combined to generate the mass balance, energy balance, capital cost and operating cost for the total process. The results show that the lowest production cost (L7/GJ) is obtained for methanol generated from a straw feedstock, but there is a moderate level of technical uncertainty associated with this result. The lowest production cost for hydrocarbon fuel (L8.6/GJ) is given by the pyrolysis process using a wood feedstock. This process has a high level of uncertainty. Fermentation processes showed the highest production costs, ranging from L14.4/GJ for a simple wood feedstock process to L25.2/GJ for a process based on sugar beet. The important conclusions are as follows: - In every case, the product cost is above current liquid fuel prices; - In most cases the feedstock cost dominates the production cost; -The most attractive products are thermochemically produced alcohol fuels

Technical and economic modelling of processes for liquid fuel production in Europe

Energy Technology Data Exchange (ETDEWEB)

Bridgwater, A V; Double, J M [Aston Univ. Birmingham (GB). Dept of Chemical Engineering

1992-12-31

The project which is described had the objective of examining the full range of technologies for liquid fuel production from renewable feedstocks in a technical and economic evaluation in order to identify the most promising technologies. The technologies considered are indirect thermochemical liquefaction (i.e. via gasification) to produce methanol, fuel alcohol or hydrocarbon fuels, direct thermochemical liquefaction or pyrolysis to produce hydrocarbon fuels and fermentation to produce ethanol. Feedstocks considered were wood, refuse derived fuel, straw, wheat and sugar beet. In order to carry out the evaluation, a computer model was developed, based on a unit process approach. Each unit operation is modelled as a process step, the model calculating the mass balance, energy balance and operating cost of the unit process. The results from the process step models are then combined to generate the mass balance, energy balance, capital cost and operating cost for the total process. The results show that the lowest production cost (L7/GJ) is obtained for methanol generated from a straw feedstock, but there is a moderate level of technical uncertainty associated with this result. The lowest production cost for hydrocarbon fuel (L8.6/GJ) is given by the pyrolysis process using a wood feedstock. This process has a high level of uncertainty. Fermentation processes showed the highest production costs, ranging from L14.4/GJ for a simple wood feedstock process to L25.2/GJ for a process based on sugar beet. The important conclusions are as follows: - In every case, the product cost is above current liquid fuel prices; - In most cases the feedstock cost dominates the production cost; -The most attractive products are thermochemically produced alcohol fuels.

Multi products single machine economic production quantity model with multiple batch size

Directory of Open Access Journals (Sweden)

Ata Allah Taleizadeh

2011-04-01

Full Text Available In this paper, a multi products single machine economic order quantity model with discrete delivery is developed. A unique cycle length is considered for all produced items with an assumption that all products are manufactured on a single machine with a limited capacity. The proposed model considers different items such as production, setup, holding, and transportation costs. The resulted model is formulated as a mixed integer nonlinear programming model. Harmony search algorithm, extended cutting plane and particle swarm optimization methods are used to solve the proposed model. Two numerical examples are used to analyze and to evaluate the performance of the proposed model.

Analysis of the influence of advanced materials for aerospace products R and D and manufacturing cost

International Nuclear Information System (INIS)

Shen, A W; Guo, J L; Wang, Z J

2015-01-01

In this paper, we pointed out the deficiency of traditional cost estimation model about aerospace products Research and Development (R and D) and manufacturing based on analyzing the widely use of advanced materials in aviation products. Then we put up with the estimating formulas of cost factor, which representing the influences of advanced materials on the labor cost rate and manufacturing materials cost rate. The values ranges of the common advanced materials such as composite materials, titanium alloy are present in the labor and materials two aspects. Finally, we estimate the R and D and manufacturing cost of F/A-18, F/A- 22, B-1B and B-2 aircraft based on the common DAPCA IV model and the modified model proposed by this paper. The calculation results show that the calculation precision improved greatly by the proposed method which considering advanced materials. So we can know the proposed method is scientific and reasonable. (paper)

Productivity and cost of harvesting a stemwood biomass product from integrated cut-to-length harvest operations in Australian Pinus radiata plantations

International Nuclear Information System (INIS)

Walsh, D.; Strandgard, M.

2014-01-01

Significant quantities of woody biomass from the tops of trees and larger woody ‘waste’ pieces that fall outside existing sawlog and pulpwood specifications are left on site post final harvest in Australian radiata Pinus radiata (D. Don) (radiata pine) plantations. Woody biomass is a potential product for pulp making or energy generation. Commercial use of woody biomass from radiata pine plantations would add extra value to the Australian plantation estate through improved resource utilisation, and potentially reduced post-harvesting silvicultural costs. This study investigated the productivity and cost impact of the harvest and extraction to roadside of woody biomass in an integrated harvest operation in a typical Australian two machine (harvester/processor and forwarder), cut-to-length, clearfall operation in a mature, thinned radiata pine plantation. The harvest operation yielded 23 GMt/ha (5% of the total yield) of woody biomass (known as ‘fibreplus’), 443 GMt/ha of sawlogs and 28 GMt/ha of pulpwood. The mean quantity of biomass left on site was 128 GMt/ha, mainly consisting of branches and needles, sufficient to minimise nutrient loss and protect the soil from erosion. Woodchips derived from the fibreplus product were suitable for kraft pulp making, (when blended in small amounts with clean de-barked roundwood woodchips), and for energy generation. The method trialed with the fibreplus product being produced did not impact harvesting and processing productivity and costs, but extraction was 14% less productive. Through analysis of the productivities of each phase and development of a cost model the harvest and extraction of the fibreplus product was estimated to increase total unit costs by ∼4.9%. - Highlights: • Study of the productivity and cost impact of producing a woody biomass product. • We compared two scenarios – harvesting with and without the biomass product. • An additional 23 GMt/ha (5% of the total yield) of woody biomass

Marginal cost calculation of energy production in hydro thermoelectric systems considering the transmission system

International Nuclear Information System (INIS)

Pereira, M.V.F.; Gorenstin, B.G.; Alvarenga Filho, S.

1989-01-01

The alternatives for calculation of energy marginal cost in hydroelectric systems, considering the transmission one, was analysed, including fundamental concepts; generation/transmission systems, represented by linear power flow model; production marginal costs in hydrothermal systems and computation aspects. (C.G.C.). 11 refs, 5 figs

Designer's unified cost model

Science.gov (United States)

Freeman, William T.; Ilcewicz, L. B.; Swanson, G. D.; Gutowski, T.

1992-01-01

A conceptual and preliminary designers' cost prediction model has been initiated. The model will provide a technically sound method for evaluating the relative cost of different composite structural designs, fabrication processes, and assembly methods that can be compared to equivalent metallic parts or assemblies. The feasibility of developing cost prediction software in a modular form for interfacing with state of the art preliminary design tools and computer aided design programs is being evaluated. The goal of this task is to establish theoretical cost functions that relate geometric design features to summed material cost and labor content in terms of process mechanics and physics. The output of the designers' present analytical tools will be input for the designers' cost prediction model to provide the designer with a data base and deterministic cost methodology that allows one to trade and synthesize designs with both cost and weight as objective functions for optimization. The approach, goals, plans, and progress is presented for development of COSTADE (Cost Optimization Software for Transport Aircraft Design Evaluation).

77 FR 7237 - Railroad Cost Recovery Procedures-Productivity Adjustment

Science.gov (United States)

2012-02-10

... Cost Recovery Procedures--Productivity Adjustment AGENCY: Surface Transportation Board. ACTION: Proposed railroad cost recovery procedures productivity adjustment. SUMMARY: In a decision served on... productivity for the 2006-2010 (5-year) averaging period. This represents a 0.6% decrease over the average for...

78 FR 10262 - Railroad Cost Recovery Procedures-Productivity Adjustment

Science.gov (United States)

2013-02-13

... Cost Recovery Procedures--Productivity Adjustment AGENCY: Surface Transportation Board, DOT. ACTION: Proposed railroad cost recovery procedures productivity adjustment. SUMMARY: In a decision served on... productivity for the 2007-2011 (5-year) averaging period. This represents a 0.1% increase over the average for...

Analysis of Product Complexity considering Disruption Cost in Fast Fashion Supply Chain

Directory of Open Access Journals (Sweden)

Shaheen Sardar

2015-01-01

Full Text Available Outsourcing in the textile industry has been playing an important role in the global economy for six decades. Recently, reshoring is an emerging trend due to various complexities involved in supply chain management. As compared with basic textile and apparel products, fast fashion products are complex in their own way. A single assortment contains several new styles, colors, and sizes with unpredictable demand and urgent deadlines. Numerous assortments run simultaneously in the supply chain. For each assortment, the garment manufacturer has to source various types of fabrics and materials from different suppliers and then manufacture the garments to ship within the deadlines. This complexity contributes to supply chain disruption. This paper develops a model to estimate supply chain disruption cost as a function of fast fashion product complexity in the global outsourcing environment. Estimation of disruption cost will help us to increase visibility and eliminate the bottlenecks in supply chain. Model conclusions are used to develop a method to manage the level of product complexity from the global supply chain perspective. Several strategies are proposed to manage the impact of product complexity on supply chain design.

Modeling intermediate product selection under production and storage capacity limitations in food processing

DEFF Research Database (Denmark)

Kilic, Onur Alper; Akkerman, Renzo; Grunow, Martin

2009-01-01

In the food industry products are usually characterized by their recipes, which are specified by various quality attributes. For end products, this is given by customer requirements, but for intermediate products, the recipes can be chosen in such a way that raw material procurement costs and pro...... with production and inventory planning, thereby considering the production and storage capacity limitations. The resulting model can be used to solve an important practical problem typical for many food processing industries.......In the food industry products are usually characterized by their recipes, which are specified by various quality attributes. For end products, this is given by customer requirements, but for intermediate products, the recipes can be chosen in such a way that raw material procurement costs...... and processing costs are minimized. However, this product selection process is bound by production and storage capacity limitations, such as the number and size of storage tanks or silos. In this paper, we present a mathematical programming approach that combines decision making on product selection...

The Application of Architecture Frameworks to Modelling Exploration Operations Costs

Science.gov (United States)

Shishko, Robert

2006-01-01

Developments in architectural frameworks and system-of-systems thinking have provided useful constructs for systems engineering. DoDAF concepts, language, and formalisms, in particular, provide a natural way of conceptualizing an operations cost model applicable to NASA's space exploration vision. Not all DoDAF products have meaning or apply to a DoDAF inspired operations cost model, but this paper describes how such DoDAF concepts as nodes, systems, and operational activities relate to the development of a model to estimate exploration operations costs. The paper discusses the specific implementation to the Mission Operations Directorate (MOD) operational functions/activities currently being developed and presents an overview of how this powerful representation can apply to robotic space missions as well.

NASA Air Force Cost Model (NAFCOM): Capabilities and Results

Science.gov (United States)

McAfee, Julie; Culver, George; Naderi, Mahmoud

2011-01-01

NAFCOM is a parametric estimating tool for space hardware. Uses cost estimating relationships (CERs) which correlate historical costs to mission characteristics to predict new project costs. It is based on historical NASA and Air Force space projects. It is intended to be used in the very early phases of a development project. NAFCOM can be used at the subsystem or component levels and estimates development and production costs. NAFCOM is applicable to various types of missions (crewed spacecraft, uncrewed spacecraft, and launch vehicles). There are two versions of the model: a government version that is restricted and a contractor releasable version.

75 FR 16575 - Railroad Cost Recovery Procedures-Productivity Adjustment

Science.gov (United States)

2010-04-01

...)] Railroad Cost Recovery Procedures--Productivity Adjustment AGENCY: Surface Transportation Board. ACTION: Adoption of a railroad cost recovery procedures productivity adjustment. SUMMARY: By decision served on February 1, 2010, the Board proposed to adopt 1.010 (1.0% per year) as the 2008 productivity adjustment, as...

75 FR 5170 - Railroad Cost Recovery Procedures-Productivity Adjustment

Science.gov (United States)

2010-02-01

...)] Railroad Cost Recovery Procedures--Productivity Adjustment AGENCY: Surface Transportation Board, DOT. ACTION: Proposed Railroad Cost Recovery Procedures Productivity Adjustment. SUMMARY: In a decision served... railroad productivity for the 2004-2008 (5-year) averaging period. This is a decline of 0.5 of a percentage...

A Costing Analysis for Decision Making Grid Model in Failure-Based Maintenance

Directory of Open Access Journals (Sweden)

Burhanuddin M. A.

2011-01-01

Full Text Available Background. In current economic downturn, industries have to set good control on production cost, to maintain their profit margin. Maintenance department as an imperative unit in industries should attain all maintenance data, process information instantaneously, and subsequently transform it into a useful decision. Then act on the alternative to reduce production cost. Decision Making Grid model is used to identify strategies for maintenance decision. However, the model has limitation as it consider two factors only, that is, downtime and frequency of failures. We consider third factor, cost, in this study for failure-based maintenance. The objective of this paper is to introduce the formulae to estimate maintenance cost. Methods. Fish bone analysis conducted with Ishikawa model and Decision Making Grid methods are used in this study to reveal some underlying risk factors that delay failure-based maintenance. The goal of the study is to estimate the risk factor that is, repair cost to fit in the Decision Making Grid model. Decision Making grid model consider two variables, frequency of failure and downtime in the analysis. This paper introduces third variable, repair cost for Decision Making Grid model. This approaches give better result to categorize the machines, reduce cost, and boost the earning for the manufacturing plant. Results. We collected data from one of the food processing factories in Malaysia. From our empirical result, Machine C, Machine D, Machine F, and Machine I must be in the Decision Making Grid model even though their frequency of failures and downtime are less than Machine B and Machine N, based on the costing analysis. The case study and experimental results show that the cost analysis in Decision Making Grid model gives more promising strategies in failure-based maintenance. Conclusions. The improvement of Decision Making Grid model for decision analysis with costing analysis is our contribution in this paper for

A roadmap for cost-of-goods planning to guide economic production of cell therapy products.

Science.gov (United States)

Lipsitz, Yonatan Y; Milligan, William D; Fitzpatrick, Ian; Stalmeijer, Evelien; Farid, Suzanne S; Tan, Kah Yong; Smith, David; Perry, Robert; Carmen, Jessica; Chen, Allen; Mooney, Charles; Fink, John

2017-12-01

Cell therapy products are frequently developed and produced without incorporating cost considerations into process development, contributing to prohibitively costly products. Herein we contextualize individual process development decisions within a broad framework for cost-efficient therapeutic manufacturing. This roadmap guides the analysis of cost of goods (COG) arising from tissue procurement, material acquisition, facility operation, production, and storage. We present the specific COG considerations related to each of these elements as identified through a 2013 International Society for Cellular Therapy COG survey, highlighting the differences between autologous and allogeneic products. Planning and accounting for COG at each step in the production process could reduce costs, allowing for more affordable market pricing to improve the long-term viability of the cell therapy product and facilitate broader patient access to novel and transformative cell therapies. Copyright © 2017 International Society for Cellular Therapy. Published by Elsevier Inc. All rights reserved.

Cost analysis of two-dimensional warranty for products with periodic preventive maintenance

International Nuclear Information System (INIS)

Huang, Yeu-Shiang; Gau, Wei-Yo; Ho, Jyh-Wen

2015-01-01

This study uses a bivariate approach, which simultaneously considers the time and usage of a repairable product, and takes into account periodic preventive maintenance to develop a two-dimensional warranty policy for the repairable product. The proposed model is based on the bivariate Weibull process to analyze the breakdown process of a repairable product simultaneously in terms of time and usage. A repairable product may be differently utilized by various customers. We consider two types of customers: (1) customers whose product warranty is terminated because the warranty time limit has reached first; (2) customers whose product warranty is terminated because the warranty usage limit has reached first, to perform cost analyses for determining an appropriate warranty policy. However, since it is often the case that the repairable product may be equally likely purchased by the two types of customers who are equivalently important to the product manufacturer; the optimal warranty policy would thus be the equilibrium solution of the cost analyses which pay the same attention to both types of customers in order to maximize the total profit of the manufacturer. - Highlights: • We use a bivariate method to model the breakdown process. • We consider a periodic PM schedule. • We obtain an optimal two-dimensional warranty policy considering various customers. • The optimal 2D warranty is an equilibrium which satisfies both seller and buyer

Parabolic Trough Collector Cost Update for the System Advisor Model (SAM)

Energy Technology Data Exchange (ETDEWEB)

Kurup, Parthiv [National Renewable Energy Lab. (NREL), Golden, CO (United States); Turchi, Craig S. [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2015-11-01

This report updates the baseline cost for parabolic trough solar fields in the United States within NREL's System Advisor Model (SAM). SAM, available at no cost at https://sam.nrel.gov/, is a performance and financial model designed to facilitate decision making for people involved in the renewable energy industry. SAM is the primary tool used by NREL and the U.S. Department of Energy (DOE) for estimating the performance and cost of concentrating solar power (CSP) technologies and projects. The study performed a bottom-up build and cost estimate for two state-of-the-art parabolic trough designs -- the SkyTrough and the Ultimate Trough. The SkyTrough analysis estimated the potential installed cost for a solar field of 1500 SCAs as $170/m² +/- $6/m². The investigation found that SkyTrough installed costs were sensitive to factors such as raw aluminum alloy cost and production volume. For example, in the case of the SkyTrough, the installed cost would rise to nearly $210/m² if the aluminum alloy cost was $1.70/lb instead of $1.03/lb. Accordingly, one must be aware of fluctuations in the relevant commodities markets to track system cost over time. The estimated installed cost for the Ultimate Trough was only slightly higher at $178/m², which includes an assembly facility of $11.6 million amortized over the required production volume. Considering the size and overall cost of a 700 SCA Ultimate Trough solar field, two parallel production lines in a fully covered assembly facility, each with the specific torque box, module and mirror jigs, would be justified for a full CSP plant.

Activity-based costing evaluation of [18F]-fludeoxyglucose production.

Science.gov (United States)

Krug, Bruno; Van Zanten, Annie; Pirson, Anne-Sophie; Crott, Ralph; Vander Borght, Thierry

2008-01-01

As healthcare expenses are escalating in many countries, the sector faces a new challenge of becoming more cost efficient. There is an urgent need for more accurate data on the costs of healthcare procedures. The cost of Positron Emission Tomography (PET) with [(18)F]-fludeoxyglucose ((18)F-FDG) studies is mainly influenced by the price of the radiopharmaceutical, which may vary throughout Europe from 300 to 500 Euro per patient dose (370 MBq). The aim of the current study is to conduct an activity-based costing (ABC) estimation of (18)F-FDG production in Europe to better identify the different cost components and to analyse their relative contribution to the total cost. Financial data were collected on capital expense and global operating costs through interviews with industry experts, PET centre managers, evaluation of prior studies, and review of expenses incurred at the University Medical Centre in Groningen (The Netherlands). After mapping the activities, we divided the cost in five categories: wage, equipment, consumables, overhead and space costs. A sensitivity analysis was performed for key cost components, including the compliance with regulatory requirements. The critical factor for profitability was throughput. Including the European regulation procedure, the cost for 370 MBq (18)F-FDG patient dose, 3 h EOS without delivery cost, ranges between 155 and 177 Euro/dose for two production runs and between 210 and 237 Euro/dose for one production run. These costs are predominantly determined by personnel and equipment costs, although the cost for quality assurance increases steadily. The ABC analysis provides significant insight into the production cost components of (18)F-FDG through different operating configurations. Reductions in equipment prices, increased availability of radiopharmaceuticals, growth in demand, and improvements in reimbursement will all contribute to the financial viability of this imaging technique.

Activity-based costing evaluation of [18F]-fludeoxyglucose production

International Nuclear Information System (INIS)

Krug, Bruno; Pirson, Anne-Sophie; Borght, Thierry vander; Zanten, Annie van; Crott, Ralph

2008-01-01

As healthcare expenses are escalating in many countries, the sector faces a new challenge of becoming more cost efficient. There is an urgent need for more accurate data on the costs of healthcare procedures. The cost of Positron Emission Tomography (PET) with [ 18 F]-fludeoxyglucose ( 18 F-FDG) studies is mainly influenced by the price of the radiopharmaceutical, which may vary throughout Europe from 300 to 500 Euro per patient dose (370 MBq). The aim of the current study is to conduct an activity-based costing (ABC) estimation of 18 F-FDG production in Europe to better identify the different cost components and to analyse their relative contribution to the total cost. Financial data were collected on capital expense and global operating costs through interviews with industry experts, PET centre managers, evaluation of prior studies, and review of expenses incurred at the University Medical Centre in Groningen (The Netherlands). After mapping the activities, we divided the cost in five categories: wage, equipment, consumables, overhead and space costs. A sensitivity analysis was performed for key cost components, including the compliance with regulatory requirements. The critical factor for profitability was throughput. Including the European regulation procedure, the cost for 370 MBq 18 F-FDG patient dose, 3 h EOS without delivery cost, ranges between 155 and 177 Euro/dose for two production runs and between 210 and 237 Euro/dose for one production run. These costs are predominantly determined by personnel and equipment costs, although the cost for quality assurance increases steadily. The ABC analysis provides significant insight into the production cost components of 18 F-FDG through different operating configurations. Reductions in equipment prices, increased availability of radiopharmaceuticals, growth in demand, and improvements in reimbursement will all contribute to the financial viability of this imaging technique. (orig.)

An economic production model for time dependent demand with rework and multiple production setups

Directory of Open Access Journals (Sweden)

S.R. Singh

2014-04-01

Full Text Available In this paper, we present a model for time dependent demand with multiple productions and rework setups. Production is demand dependent and greater than the demand rate. Production facility produces items in m production setups and one rework setup (m, 1 policy. The major reason of reverse logistic and green supply chain is rework, so it reduces the cost of production and other ecological problems. Most of the researchers developed a rework model without deteriorating items. A numerical example and sensitivity analysis is shown to describe the model.

Designers' unified cost model

Science.gov (United States)

Freeman, W.; Ilcewicz, L.; Swanson, G.; Gutowski, T.

1992-01-01

The Structures Technology Program Office (STPO) at NASA LaRC has initiated development of a conceptual and preliminary designers' cost prediction model. The model will provide a technically sound method for evaluating the relative cost of different composite structural designs, fabrication processes, and assembly methods that can be compared to equivalent metallic parts or assemblies. The feasibility of developing cost prediction software in a modular form for interfacing with state-of-the-art preliminary design tools and computer aided design programs is being evaluated. The goal of this task is to establish theoretical cost functions that relate geometric design features to summed material cost and labor content in terms of process mechanics and physics. The output of the designers' present analytical tools will be input for the designers' cost prediction model to provide the designer with a database and deterministic cost methodology that allows one to trade and synthesize designs with both cost and weight as objective functions for optimization. This paper presents the team members, approach, goals, plans, and progress to date for development of COSTADE (Cost Optimization Software for Transport Aircraft Design Evaluation).

Tax policy can change the production path: A model of optimal oil extraction in Alaska

International Nuclear Information System (INIS)

Leighty, Wayne; Lin, C.-Y. Cynthia

2012-01-01

We model the economically optimal dynamic oil production decisions for seven production units (fields) on Alaska's North Slope. We use adjustment cost and discount rate to calibrate the model against historical production data, and use the calibrated model to simulate the impact of tax policy on production rate. We construct field-specific cost functions from average cost data and an estimated inverse production function, which incorporates engineering aspects of oil production into our economic modeling. Producers appear to have approximated dynamic optimality. Consistent with prior research, we find that changing the tax rate alone does not change the economically optimal oil production path, except for marginal fields that may cease production. Contrary to prior research, we find that the structure of tax policy can be designed to affect the economically optimal production path, but at a cost in net social benefit. - Highlights: ► We model economically optimal dynamic oil production decisions for 7 Alaska fields. ► Changing tax rate alone does not alter the economically optimal oil production path. ► But change in tax structure can affect the economically optimal oil production path. ► Tax structures that modify the optimal production path reduce net social benefit. ► Field-specific cost functions and inverse production functions are estimated

An estimate of the cost of electricity production from hot-dry rock

International Nuclear Information System (INIS)

Pierce, K.G.; Livesay, B.J.

1993-01-01

This paper gives an estimate of the cost to produce electricity from hot-dry rock (HDR). Employment of the energy in HDR for the production of electricity requires drilling multiple wells from the surface to the hot rock, connecting the wells through hydraulic fracturing, and then circulating water through the fracture system to extract heat from the rock. The basic HDR system modeled in this paper consists of an injection well, two production wells, the fracture system (or HDR reservoir), and a binary power plant. Water is pumped into the reservoir through the injection well where it is heated and then recovered through the production wells. Upon recovery, the hot water is pumped through a heat exchanger transferring heat to the binary, or working, fluid in the power plant. The power plant is a net 5.1-MW e binary plant employing dry cooling. Make-up water is supplied by a local well. In this paper, the cost of producing electricity with the basic system is estimated as the sum of the costs of the individual parts. The effects on cost of variations to certain assumptions, as well as the sensitivity of costs to different aspects of the basic system, are also investigated

Cost and cost-effectiveness of tuberculosis treatment shortening: a model-based analysis.

Science.gov (United States)

Gomez, G B; Dowdy, D W; Bastos, M L; Zwerling, A; Sweeney, S; Foster, N; Trajman, A; Islam, M A; Kapiga, S; Sinanovic, E; Knight, G M; White, R G; Wells, W A; Cobelens, F G; Vassall, A

2016-12-01

Despite improvements in treatment success rates for tuberculosis (TB), current six-month regimen duration remains a challenge for many National TB Programmes, health systems, and patients. There is increasing investment in the development of shortened regimens with a number of candidates in phase 3 trials. We developed an individual-based decision analytic model to assess the cost-effectiveness of a hypothetical four-month regimen for first-line treatment of TB, assuming non-inferiority to current regimens of six-month duration. The model was populated using extensive, empirically-collected data to estimate the economic impact on both health systems and patients of regimen shortening for first-line TB treatment in South Africa, Brazil, Bangladesh, and Tanzania. We explicitly considered 'real world' constraints such as sub-optimal guideline adherence. From a societal perspective, a shortened regimen, priced at USD1 per day, could be a cost-saving option in South Africa, Brazil, and Tanzania, but would not be cost-effective in Bangladesh when compared to one gross domestic product (GDP) per capita. Incorporating 'real world' constraints reduces cost-effectiveness. Patient-incurred costs could be reduced in all settings. From a health service perspective, increased drug costs need to be balanced against decreased delivery costs. The new regimen would remain a cost-effective option, when compared to each countries' GDP per capita, even if new drugs cost up to USD7.5 and USD53.8 per day in South Africa and Brazil; this threshold was above USD1 in Tanzania and under USD1 in Bangladesh. Reducing the duration of first-line TB treatment has the potential for substantial economic gains from a patient perspective. The potential economic gains for health services may also be important, but will be context-specific and dependent on the appropriate pricing of any new regimen.

Predicting the costs of photovoltaic solar modules in 2020 using experience curve models

International Nuclear Information System (INIS)

La Tour, Arnaud de; Glachant, Matthieu; Ménière, Yann

2013-01-01

Except in few locations, photovoltaic generated electricity remains considerably more expensive than conventional sources. It is however expected that innovation and learning-by-doing will lead to drastic cuts in production cost in the near future. The goal of this paper is to predict the cost of PV modules out to 2020 using experience curve models, and to draw implications about the cost of PV electricity. Using annual data on photovoltaic module prices, cumulative production, R and D knowledge stock and input prices for silicon and silver over the period 1990–2011, we identify a experience curve model which minimizes the difference between predicted and actual module prices. This model predicts a 67% decrease of module price from 2011 to 2020. This rate implies that the cost of PV generated electricity will reach that of conventional electricity by 2020 in the sunniest countries with annual solar irradiation of 2000 kWh/year or more, such as California, Italy, and Spain. - Highlights: • We predict the cost of PV modules out to 2020 using experience curve models. • The model predicts a 67% decrease of module price from 2011 to 2020. • We draw implications about the cost of PV electricity

New Approaches in Reuseable Booster System Life Cycle Cost Modeling

Science.gov (United States)

Zapata, Edgar

2013-01-01

This paper presents the results of a 2012 life cycle cost (LCC) study of hybrid Reusable Booster Systems (RBS) conducted by NASA Kennedy Space Center (KSC) and the Air Force Research Laboratory (AFRL). The work included the creation of a new cost estimating model and an LCC analysis, building on past work where applicable, but emphasizing the integration of new approaches in life cycle cost estimation. Specifically, the inclusion of industry processes/practices and indirect costs were a new and significant part of the analysis. The focus of LCC estimation has traditionally been from the perspective of technology, design characteristics, and related factors such as reliability. Technology has informed the cost related support to decision makers interested in risk and budget insight. This traditional emphasis on technology occurs even though it is well established that complex aerospace systems costs are mostly about indirect costs, with likely only partial influence in these indirect costs being due to the more visible technology products. Organizational considerations, processes/practices, and indirect costs are traditionally derived ("wrapped") only by relationship to tangible product characteristics. This traditional approach works well as long as it is understood that no significant changes, and by relation no significant improvements, are being pursued in the area of either the government acquisition or industry?s indirect costs. In this sense then, most launch systems cost models ignore most costs. The alternative was implemented in this LCC study, whereby the approach considered technology and process/practices in balance, with as much detail for one as the other. This RBS LCC study has avoided point-designs, for now, instead emphasizing exploring the trade-space of potential technology advances joined with potential process/practice advances. Given the range of decisions, and all their combinations, it was necessary to create a model of the original model

New Approaches in Reusable Booster System Life Cycle Cost Modeling

Science.gov (United States)

Zapata, Edgar

2013-01-01

This paper presents the results of a 2012 life cycle cost (LCC) study of hybrid Reusable Booster Systems (RBS) conducted by NASA Kennedy Space Center (KSC) and the Air Force Research Laboratory (AFRL). The work included the creation of a new cost estimating model and an LCC analysis, building on past work where applicable, but emphasizing the integration of new approaches in life cycle cost estimation. Specifically, the inclusion of industry processes/practices and indirect costs were a new and significant part of the analysis. The focus of LCC estimation has traditionally been from the perspective of technology, design characteristics, and related factors such as reliability. Technology has informed the cost related support to decision makers interested in risk and budget insight. This traditional emphasis on technology occurs even though it is well established that complex aerospace systems costs are mostly about indirect costs, with likely only partial influence in these indirect costs being due to the more visible technology products. Organizational considerations, processes/practices, and indirect costs are traditionally derived ("wrapped") only by relationship to tangible product characteristics. This traditional approach works well as long as it is understood that no significant changes, and by relation no significant improvements, are being pursued in the area of either the government acquisition or industry?s indirect costs. In this sense then, most launch systems cost models ignore most costs. The alternative was implemented in this LCC study, whereby the approach considered technology and process/practices in balance, with as much detail for one as the other. This RBS LCC study has avoided point-designs, for now, instead emphasizing exploring the trade-space of potential technology advances joined with potential process/practice advances. Given the range of decisions, and all their combinations, it was necessary to create a model of the original model

Environmental costs of fossil fuel energy production

International Nuclear Information System (INIS)

Riva, A.; Trebeschi, C.

1997-01-01

The costs of environmental impacts caused by fossil fuel energy production are external to the energy economy and normally they are not reflected in energy prices. To determine the environmental costs associated with an energy source a detailed analysis of all environmental impacts of the complete energy cycle is required. The economic evaluation of environmental damages is presented caused by atmospheric emissions produced by fossil fuel combustion for different uses. Considering the emission factors of sulphur oxides, nitrogen oxides, dust and carbon dioxide and the economic evaluation of their environmental damages reported in literature, a range of environmental costs associated with different fossil fuels and technologies is presented. A comparison of environmental costs resulting from atmospheric emissions produced by fossil-fuel combustion for energy production shows that natural gas has a significantly higher environmental value than other fossil fuels. (R.P.)

Examining the association of smoking with work productivity and associated costs in Japan.

Science.gov (United States)

Suwa, Kiyomi; Flores, Natalia M; Yoshikawa, Reiko; Goto, Rei; Vietri, Jeffrey; Igarashi, Ataru

2017-09-01

Smoking is associated with significant health and economic burden globally, including an increased risk of many leading causes of mortality and significant impairments in work productivity. This burden is attenuated by successful tobacco cessation, including reduced risk of disease and improved productivity. The current study aimed to show the benefits of smoking cessation for workplace productivity and decreased costs associated with loss of work impairment. The data source was the 2011 Japan National Health and Wellness Survey (n = 30,000). Respondents aged 20-64 were used in the analyses (n = 23,738) and were categorized into: current smokers, former smokers, and never smokers. Generalized linear models controlling for demographics and health characteristics examined the relationship of smoking status with the Work Productivity and Activity Impairment questionnaire (WPAI-GH) endpoints, as well as estimated indirect costs. Current smokers reported the greatest overall work impairment, including absenteeism (i.e. work time missed) and presenteeism (i.e. impairment while at work); however, after controlling for covariates, there were no significant differences between former smokers and never smokers on overall work impairment. Current smokers and former smokers had greater activity impairment (i.e. impairment in daily activities) than never smokers. Current smokers reported the highest indirect costs (i.e. costs associated with work impairment); however, after controlling for covariates, there were no significant differences between former smokers and never smokers on indirect costs. Smoking exerts a large health and economic burden; however, smoking cessation attenuates this burden. The current study provides important further evidence of this association, with former smokers appearing statistically indistinguishable from never smokers in terms of work productivity loss and associated indirect costs among a large representative sample of Japanese workers

Methodological aspects of accounting production cost of public sector entities

Directory of Open Access Journals (Sweden)

Людмила Геннадіївна Ловінська

2015-09-01

Full Text Available The necessity of obtaining objective information about the activities of the public sector in various areas of the production is defined. It is proved an expediency of development the Project of «Guidelines for the structure of production costs» on the basis of the approved in the public sector NP(SAPS 135 "Costs". The need for accounting costs by type of activity (operational, financial and investment is marked. The composition of production costs is defined

Impact of air pollution control costs on the cost and spatial arrangement of cellulosic biofuel production in the U.S.

Science.gov (United States)

Murphy, Colin W; Parker, Nathan C

2014-02-18

Air pollution emissions regulation can affect the location, size, and technology choice of potential biofuel production facilities. Difficulty in obtaining air pollutant emission permits and the cost of air pollution control devices have been cited by some fuel producers as barriers to development. This paper expands on the Geospatial Bioenergy Systems Model (GBSM) to evaluate the effect of air pollution control costs on the availability, cost, and distribution of U.S. biofuel production by subjecting potential facility locations within U.S. Clean Air Act nonattainment areas, which exceed thresholds for healthy air quality, to additional costs. This paper compares three scenarios: one with air quality costs included, one without air quality costs, and one in which conversion facilities were prohibited in Clean Air Act nonattainment areas. While air quality regulation may substantially affect local decisions regarding siting or technology choices, their effect on the system as a whole is small. Most biofuel facilities are expected to be sited near to feedstock supplies, which are seldom in nonattainment areas. The average cost per unit of produced energy is less than 1% higher in the scenarios with air quality compliance costs than in scenarios without such costs. When facility construction is prohibited in nonattainment areas, the costs increase by slightly over 1%, due to increases in the distance feedstock is transported to facilities in attainment areas.

A Decision-making Model for a Two-stage Production-delivery System in SCM Environment

Science.gov (United States)

Feng, Ding-Zhong; Yamashiro, Mitsuo

A decision-making model is developed for an optimal production policy in a two-stage production-delivery system that incorporates a fixed quantity supply of finished goods to a buyer at a fixed interval of time. First, a general cost model is formulated considering both supplier (of raw materials) and buyer (of finished products) sides. Then an optimal solution to the problem is derived on basis of the cost model. Using the proposed model and its optimal solution, one can determine optimal production lot size for each stage, optimal number of transportation for semi-finished goods, and optimal quantity of semi-finished goods transported each time to meet the lumpy demand of consumers. Also, we examine the sensitivity of raw materials ordering and production lot size to changes in ordering cost, transportation cost and manufacturing setup cost. A pragmatic computation approach for operational situations is proposed to solve integer approximation solution. Finally, we give some numerical examples.

Software Cost-Estimation Model

Science.gov (United States)

Tausworthe, R. C.

1985-01-01

Software Cost Estimation Model SOFTCOST provides automated resource and schedule model for software development. Combines several cost models found in open literature into one comprehensive set of algorithms. Compensates for nearly fifty implementation factors relative to size of task, inherited baseline, organizational and system environment and difficulty of task.

Innovation in product design as a factor for reducing logistic and production costs

Directory of Open Access Journals (Sweden)

Luciana Fighera Marzall

2016-03-01

Full Text Available Innovation has been considered of fundamental importance for organizations competing in dynamic environments, which along with cost management has been shown as an organizational strategy that allows the company to measure its results and implement measures that impact on the organization's performance as a whole. This paper, carried out in a metal mechanical industry of a telecommunications engineering branch, aims to analyse cost reduction in logistics raw materials areas through innovation in the product design, which are antennas and towers for telephone networks. In terms of methodology, this study presents itself as a qualitative and quantitative research-action, which from the link between theory and practice allows for intervention in the middle of the researchers studied. As a result, an innovative project was developed, which allowed for the reduction costs of production by 68% and logistics by 32%. Despite the significant decrease in costs, the quality of manufactured products not declined and customer needs were met, thus making the company more competitive against competitors. Not widespread in the literature, this analysis of the impact on logistics and production costs due to improvements in the project is the main contribution theoretical of this paper.

No apparent costs for facultative antibiotic production by the soil bacterium Pseudomonas fluorescens Pf0-1.

Science.gov (United States)

Garbeva, Paolina; Tyc, Olaf; Remus-Emsermann, Mitja N P; van der Wal, Annemieke; Vos, Michiel; Silby, Mark; de Boer, Wietse

2011-01-01

Many soil-inhabiting bacteria are known to produce secondary metabolites that can suppress microorganisms competing for the same resources. The production of antimicrobial compounds is expected to incur fitness costs for the producing bacteria. Such costs form the basis for models on the co-existence of antibiotic-producing and non-antibiotic producing strains. However, so far studies quantifying the costs of antibiotic production by bacteria are scarce. The current study reports on possible costs, for antibiotic production by Pseudomonas fluorescens Pf0-1, a soil bacterium that is induced to produce a broad-spectrum antibiotic when it is confronted with non-related bacterial competitors or supernatants of their cultures. We measured the possible cost of antibiotic production for Pseudomonas fluorescens Pf0-1 by monitoring changes in growth rate with and without induction of antibiotic production by supernatant of a bacterial competitor, namely Pedobacter sp.. Experiments were performed in liquid as well as on semi-solid media under nutrient-limited conditions that are expected to most clearly reveal fitness costs. Our results did not reveal any significant costs for production of antibiotics by Pseudomonas fluorescens Pf0-1. Comparison of growth rates of the antibiotic-producing wild-type cells with those of non-antibiotic producing mutants did not reveal costs of antibiotic production either. Based on our findings we propose that the facultative production of antibiotics might not be selected to mitigate metabolic costs, but instead might be advantageous because it limits the risk of competitors evolving resistance, or even the risk of competitors feeding on the compounds produced.

A Production Planning Model for Make-to-Order Foundry Flow Shop with Capacity Constraint

Directory of Open Access Journals (Sweden)

Xixing Li

2017-01-01

Full Text Available The mode of production in the modern manufacturing enterprise mainly prefers to MTO (Make-to-Order; how to reasonably arrange the production plan has become a very common and urgent problem for enterprises’ managers to improve inner production reformation in the competitive market environment. In this paper, a mathematical model of production planning is proposed to maximize the profit with capacity constraint. Four kinds of cost factors (material cost, process cost, delay cost, and facility occupy cost are considered in the proposed model. Different factors not only result in different profit but also result in different satisfaction degrees of customers. Particularly, the delay cost and facility occupy cost cannot reach the minimum at the same time; the two objectives are interactional. This paper presents a mathematical model based on the actual production process of a foundry flow shop. An improved genetic algorithm (IGA is proposed to solve the biobjective problem of the model. Also, the gene encoding and decoding, the definition of fitness function, and genetic operators have been illustrated. In addition, the proposed algorithm is used to solve the production planning problem of a foundry flow shop in a casting enterprise. And comparisons with other recently published algorithms show the efficiency and effectiveness of the proposed algorithm.

Parametric cost models for space telescopes

Science.gov (United States)

Stahl, H. Philip; Henrichs, Todd; Dollinger, Courtnay

2017-11-01

Multivariable parametric cost models for space telescopes provide several benefits to designers and space system project managers. They identify major architectural cost drivers and allow high-level design trades. They enable cost-benefit analysis for technology development investment. And, they provide a basis for estimating total project cost. A survey of historical models found that there is no definitive space telescope cost model. In fact, published models vary greatly [1]. Thus, there is a need for parametric space telescopes cost models. An effort is underway to develop single variable [2] and multi-variable [3] parametric space telescope cost models based on the latest available data and applying rigorous analytical techniques. Specific cost estimating relationships (CERs) have been developed which show that aperture diameter is the primary cost driver for large space telescopes; technology development as a function of time reduces cost at the rate of 50% per 17 years; it costs less per square meter of collecting aperture to build a large telescope than a small telescope; and increasing mass reduces cost.

Parametric Cost Models for Space Telescopes

Science.gov (United States)

Stahl, H. Philip; Henrichs, Todd; Dollinger, Courtney

2010-01-01

Multivariable parametric cost models for space telescopes provide several benefits to designers and space system project managers. They identify major architectural cost drivers and allow high-level design trades. They enable cost-benefit analysis for technology development investment. And, they provide a basis for estimating total project cost. A survey of historical models found that there is no definitive space telescope cost model. In fact, published models vary greatly [1]. Thus, there is a need for parametric space telescopes cost models. An effort is underway to develop single variable [2] and multi-variable [3] parametric space telescope cost models based on the latest available data and applying rigorous analytical techniques. Specific cost estimating relationships (CERs) have been developed which show that aperture diameter is the primary cost driver for large space telescopes; technology development as a function of time reduces cost at the rate of 50% per 17 years; it costs less per square meter of collecting aperture to build a large telescope than a small telescope; and increasing mass reduces cost.

Cost study on waste management at three model Canadian uranium mines

International Nuclear Information System (INIS)

1984-03-01

A waste management cost study was initiated to determine the capital and operating costs of three different uranium waste management systems which incorporate current technologies being used in Canadian uranium mining operations. Cost estimates were to be done to a thirty percent level of accuracy and were to include all waste management related costs of a uranium ore processing facility. Each model is based on an annual uranium production of 1,923,000 kg U (5,000,000 lbs U 3 O 8 ) with a total operating life of 20 years for the facility. The three models, A, B, and C, are based on three different uranium ore grades, 0.10 percent U 3 O 8 , 0.475 percent U 3 O 8 and 1.5 percent U 3 O 8 respectively. Yellowcake production is assumed to start in January 1984. Model A is based on a conceptual 7,180 tonne per day uranium ore processing facility and waste management system typical of uranium operations in the Elliot Lake area of northern Ontario with an established infrastructure. Model B is a 1.512 tonne per day operation based on a remote uranium operation typical of the Athabasca Basin properties in northern Saskatchewan. Model C is a 466 tonne per day operation processing a high-grade uranium ore containing arsenic and heavy metal concentrations typical of some northern Saskatchewan deposits

Cost Model for Digital Curation: Cost of Digital Migration

DEFF Research Database (Denmark)

Kejser, Ulla Bøgvad; Nielsen, Anders Bo; Thirifays, Alex

2009-01-01

The Danish Ministry of Culture is currently funding a project to set up a model for costing preservation of digital materials held by national cultural heritage institutions. The overall objective of the project is to provide a basis for comparing and estimating future financial requirements...... for digital preservation and to increase cost effectiveness of digital preservation activities. In this study we describe an activity based costing methodology for digital preservation based on the OAIS Reference Model. In order to estimate the cost of digital migrations we have identified cost critical...

[Socioeconomic costs of food-borne disease using the cost-of-illness model: applying the QALY method].

Science.gov (United States)

Shin, Hosung; Lee, Suehyung; Kim, Jong Soo; Kim, Jinsuk; Han, Kyu Hong

2010-07-01

This study estimated the annual socioeconomic costs of food-borne disease in 2008 from a societal perspective and using a cost-of-illness method. Our model employed a comprehensive set of diagnostic disease codes to define food-borne diseases with using the Korea National Health Insurance (KNHI) reimbursement data. This study classified the food borne illness as three types of symptoms according to the severity of the illness: mild, moderate, severe. In addition to the traditional method of assessing the cost-of-illness, the study included measures to account for the lost quality of life. We estimated the cost of the lost quality of life using quality-adjusted life years and a visual analog scale. The direct cost included medical and medication costs, and the non-medical costs included transportation costs, caregiver's cost and administration costs. The lost productivity costs included lost workdays due to illness and lost earnings due to premature death. The study found the estimated annual socioeconomic costs of food-borne disease in 2008 were 954.9 billion won (735.3 billion won-996.9 billion won). The medical cost was 73.4 - 76.8% of the cost, the lost productivity cost was 22.6% and the cost of the lost quality of life was 26.0%. Most of the cost-of-illness studies are known to have underestimated the actual socioeconomic costs of the subjects, and these studies excluded many important social costs, such as the value of pain, suffering and functional disability. The study addressed the uncertainty related to estimating the socioeconomic costs of food-borne disease as well as the updated cost estimates. Our estimates could contribute to develop and evaluate policies for food-borne disease.

A business case evaluation of workplace engineering noise control: a net-cost model.

Science.gov (United States)

Lahiri, Supriya; Low, Colleen; Barry, Michael

2011-03-01

This article provides a convenient tool for companies to determine the costs and benefits of alternative interventions to prevent noise-induced hearing loss (NIHL). Contextualized for Singapore and in collaboration with Singapore's Ministry of Manpower, the Net-Cost model evaluates costs of intervention for equipment and labor, avoided costs of productivity losses and medical care, and productivity gains from the employer's economic perspective. To pilot this approach, four case studies are presented, with varying degrees of economic benefits to the employer, including one in which multifactor productivity is the main driver. Although compliance agencies may not require economic analysis of NIHL, given scarce resources in a market-driven economy, this tool enables stakeholders to understand and compare the costs and benefits of NIHL interventions comprehensively and helps in determining risk management strategies.

Workplace smoking related absenteeism and productivity costs in Taiwan.

Science.gov (United States)

Tsai, S P; Wen, C P; Hu, S C; Cheng, T Y; Huang, S J

2005-06-01

To estimate productivity losses and financial costs to employers caused by cigarette smoking in the Taiwan workplace. The human capital approach was used to calculate lost productivity. Assuming the value of lost productivity was equal to the wage/salary rate and basing the calculations on smoking rate in the workforce, average days of absenteeism, average wage/salary rate, and increased risk and absenteeism among smokers obtained from earlier research, costs due to smoker absenteeism were estimated. Financial losses caused by passive smoking, smoking breaks, and occupational injuries were calculated. Using a conservative estimate of excess absenteeism from work, male smokers took off an average of 4.36 sick days and male non-smokers took off an average of 3.30 sick days. Female smokers took off an average of 4.96 sick days and non-smoking females took off an average of 3.75 sick days. Excess absenteeism caused by employee smoking was estimated to cost USD 178 million per annum for males and USD 6 million for females at a total cost of USD 184 million per annum. The time men and women spent taking smoking breaks amounted to nine days per year and six days per year, respectively, resulting in reduced output productivity losses of USD 733 million. Increased sick leave costs due to passive smoking were approximately USD 81 million. Potential costs incurred from occupational injuries among smoking employees were estimated to be USD 34 million. Financial costs caused by increased absenteeism and reduced productivity from employees who smoke are significant in Taiwan. Based on conservative estimates, total costs attributed to smoking in the workforce were approximately USD 1032 million.

Cost optimization of biofuel production – The impact of scale, integration, transport and supply chain configurations

NARCIS (Netherlands)

de Jong, S.A.|info:eu-repo/dai/nl/41200836X; Hoefnagels, E.T.A.|info:eu-repo/dai/nl/313935998; Wetterlund, Elisabeth; Pettersson, Karin; Faaij, André; Junginger, H.M.|info:eu-repo/dai/nl/202130703

2017-01-01

This study uses a geographically-explicit cost optimization model to analyze the impact of and interrelation between four cost reduction strategies for biofuel production: economies of scale, intermodal transport, integration with existing industries, and distributed supply chain configurations

Interfirm and intrafirm switching costs in a vertical differentiation setting : Green versus non-green products

NARCIS (Netherlands)

Toolsema-Veldman, Linda

2009-01-01

In a vertical differentiation model where both duopolists supply the same two qualities of an otherwise homogeneous product, we derive the critical level of the interfirm switching cost needed to sustain monopoly pricing. In particular, we show how a decrease in the intrafirm switching cost may

Historical plant cost and annual production expenses for selected electric plants, 1982

International Nuclear Information System (INIS)

1984-01-01

This publication is a composite of the two prior publications, Hydroelectric Plant Construction Cost and Annual Production Expenses and Thermal-Electric Plant Construction Cost and Annual Production Expenses. Beginning in 1979, Thermal-Electric Plant Construction Cost and Annual Production Expenses contained information on both steam-electric and gas-turbine electric plant construction cost and annual production expenses. The summarized historical plant cost described under Historical Plant Cost in this report is the net cumulative-to-date actual outlays or expenditures for land, structures, and equipment to the utility. Historical plant cost is the initial investment in plant (cumulative to the date of initial commercial operation) plus the costs of all additions to the plant, less the value of retirements. Thus, historical plant cost includes expenditures made over several years, as modifications are made to the plant. Power Production Expenses is the reporting year's plant operation and maintenance expenses, including fuel expenses. These expenses do not include annual fixed charges on plant cost (capital costs) such as interest on debt, depreciation or amortization expenses, and taxes. Consequently, total production expenses and the derived unit costs are not the total cost of producing electric power at the various plants. This publication contains data on installed generating capacity, net generation, net capability, historical plant cost, production expenses, fuel consumption, physical and operating plant characteristics, and other relevant statistical information for selected plants

Space system production cost benefits from contemporary philosophies in management and manufacturing

Science.gov (United States)

Rosmait, Russell L.

1991-01-01

The cost of manufacturing space system hardware has always been expensive. The Engineering Cost Group of the Program Planning office at Marshall is attempting to account for cost savings that result from new technologies in manufacturing and management. The objective is to identify and define contemporary philosophies in manufacturing and management. The seven broad categories that make up the areas where technological advances can assist in reducing space system costs are illustrated. Included within these broad categories is a list of the processes or techniques that specifically provide the cost savings within todays design, test, production and operations environments. The processes and techniques listed achieve savings in the following manner: increased productivity; reduced down time; reduced scrap; reduced rework; reduced man hours; and reduced material costs. In addition, it should be noted that cost savings from production and processing improvements effect 20 to 40 pct. of production costs whereas savings from management improvements effects 60 to 80 of production cost. This is important because most efforts in reducing costs are spent trying to reduce cost in the production.

Cost-benefit study of consumer product take-back programs using IBM's WIT reverse logistics optimization tool

Science.gov (United States)

Veerakamolmal, Pitipong; Lee, Yung-Joon; Fasano, J. P.; Hale, Rhea; Jacques, Mary

2002-02-01

In recent years, there has been increased focus by regulators, manufacturers, and consumers on the issue of product end of life management for electronics. This paper presents an overview of a conceptual study designed to examine the costs and benefits of several different Product Take Back (PTB) scenarios for used electronics equipment. The study utilized a reverse logistics supply chain model to examine the effects of several different factors in PTB programs. The model was done using the IBM supply chain optimization tool known as WIT (Watson Implosion Technology). Using the WIT tool, we were able to determine a theoretical optimal cost scenario for PTB programs. The study was designed to assist IBM internally in determining theoretical optimal Product Take Back program models and determining potential incentives for increasing participation rates.

No apparent costs for facultative antibiotic production by the soil bacterium Pseudomonas fluorescens Pf0-1.

Directory of Open Access Journals (Sweden)

Paolina Garbeva

Full Text Available BACKGROUND: Many soil-inhabiting bacteria are known to produce secondary metabolites that can suppress microorganisms competing for the same resources. The production of antimicrobial compounds is expected to incur fitness costs for the producing bacteria. Such costs form the basis for models on the co-existence of antibiotic-producing and non-antibiotic producing strains. However, so far studies quantifying the costs of antibiotic production by bacteria are scarce. The current study reports on possible costs, for antibiotic production by Pseudomonas fluorescens Pf0-1, a soil bacterium that is induced to produce a broad-spectrum antibiotic when it is confronted with non-related bacterial competitors or supernatants of their cultures. METHODOLOGY AND PRINCIPAL FINDINGS: We measured the possible cost of antibiotic production for Pseudomonas fluorescens Pf0-1 by monitoring changes in growth rate with and without induction of antibiotic production by supernatant of a bacterial competitor, namely Pedobacter sp.. Experiments were performed in liquid as well as on semi-solid media under nutrient-limited conditions that are expected to most clearly reveal fitness costs. Our results did not reveal any significant costs for production of antibiotics by Pseudomonas fluorescens Pf0-1. Comparison of growth rates of the antibiotic-producing wild-type cells with those of non-antibiotic producing mutants did not reveal costs of antibiotic production either. SIGNIFICANCE: Based on our findings we propose that the facultative production of antibiotics might not be selected to mitigate metabolic costs, but instead might be advantageous because it limits the risk of competitors evolving resistance, or even the risk of competitors feeding on the compounds produced.

An Assessment of Technical and Production Risks of Candidate Low-Cost Attitude/Heading Reference Systems(AHRS)

Science.gov (United States)

Yuchnovicz, Daniel; Burgess, Malcolm; Hammers, William

1999-01-01

This report provides an assessment of technical and production risks of candidate low-cost attitude/heading reference systems (AHRS) for use in the Advanced General Aviation Transport Experiments (AGATE) airplanes. A low-cost AHRS is a key component of modem "glass cockpit" flight displays for General Aviation (GA) aircraft. The technical capabilities of several candidate low-cost AHRS were examined and described along with the technical issues involved with using all solid-state components for attitude measurement. An economic model was developed which describes the expected profit, rate of return, and volume requirements for the manufacture of low-cost AHRS for GA aircraft in the 2000 to 2020 time frame. The model is the result of interviews with GA airframe manufacturers, avionics manufacturers and historical analysis of avionics of similar complexity. The model shows that a manufacturer will break even after three years of AHRS production, realizing an 18 percent rate of return (23 percent profit) on an investment of $3.5M over the 20 year period. A start-up production estimate showed costs of $6-12M for a new company to build and certify an AHRS from scratch, considered to be a high-risk proposition, versus $0.25-0.75M for an experienced avionics manufacturer to manufacture a design under license, a low-risk proposition.

Operational costs induced by fluctuating wind power production in Germany and Scandinavia

DEFF Research Database (Denmark)

Meibom, Peter; Weber, C.; Barth, R.

2009-01-01

Adding wind power generation in a power system changes the operational patterns of the existing units due to the variability and partial predictability of wind power production. For large amounts of wind power production, the expectation is that the specific operational costs (fuel costs, start......-up costs, variable operation and maintenance costs, costs of consuming CO2 emission permits) of the other power plants will increase due to more operation time in part-load and more start-ups. The change in operational costs induced by the wind power production can only be calculated by comparing...... the operational costs in two power system configurations: with wind power production and with alternative wind production having properties such as conventional production, that is, being predictable and less variable. The choice of the characteristics of the alternative production is not straightforward...

Studies in Software Cost Model Behavior: Do We Really Understand Cost Model Performance?

Science.gov (United States)

Lum, Karen; Hihn, Jairus; Menzies, Tim

2006-01-01

While there exists extensive literature on software cost estimation techniques, industry practice continues to rely upon standard regression-based algorithms. These software effort models are typically calibrated or tuned to local conditions using local data. This paper cautions that current approaches to model calibration often produce sub-optimal models because of the large variance problem inherent in cost data and by including far more effort multipliers than the data supports. Building optimal models requires that a wider range of models be considered while correctly calibrating these models requires rejection rules that prune variables and records and use multiple criteria for evaluating model performance. The main contribution of this paper is to document a standard method that integrates formal model identification, estimation, and validation. It also documents what we call the large variance problem that is a leading cause of cost model brittleness or instability.

Adoption of an activity based costing model in an Indian steel plant

Directory of Open Access Journals (Sweden)

Rishi Dwivedi

2016-10-01

Full Text Available In the age of relentless global competition, constantly improving technology and better information systems, managers are often compelled to devise new strategies to maintain sustained competitive advantage while adopting new business management approaches. So, in this paper, an activity based costing (ABC model is proposed for a raw material handling section of an Indian steel plant. The results obtained from ABC model application in the said department facilitates quantification of the unit cost of each process, analysis of various activities in order to identify inefficiency, setting-up of better budget allocation, initiation of cost minimization procedure and establishment of an efficient resource requirement plan. Moreover, the cost information derived from ABC model is compared with that extracted from the traditional costing system to demonstrate that ABC model can significantly minimize the product cost distortion resulting from unsystematic allocation of overhead costs. This paper also discusses the practical implication of the implemented ABC model with respect to its critical role in effective resource control, improved strategic and operational decision making, and aid in continuous improvement through internal cost minimization in the department.

The cost of productivity losses associated with allergic rhinitis.

Science.gov (United States)

Crystal-Peters, J; Crown, W H; Goetzel, R Z; Schutt, D C

2000-03-01

To measure the cost of absenteeism and reduced productivity associated with allergic rhinitis. The National Health Interview Survey (NHIS) was used to obtain information on days lost from work and lost productivity due to allergic rhinitis. Wage estimates for occupations obtained from the Bureau of Labor Statistics (BLS) were used to calculate the costs. Productivity losses associated with a diagnosis of allergic rhinitis in the 1995 NHIS were estimated to be $601 million. When additional survey information on the use of sedating over-the-counter (OTC) allergy medications, as well as workers' self-assessments of their reduction in at-work productivity due to allergic rhinitis, were considered, the estimated productivity loss increased dramatically. At-work productivity losses were estimated to range from $2.4 billion to $4.6 billion. Despite the inherent difficulty of measuring productivity losses, our lowest estimate is several times higher than previous estimates of the indirect medical costs associated with allergic rhinitis treatment. The most significant productivity losses resulted not from absenteeism but from reduced at-work productivity associated with the use of sedating OTC antihistamines.

Assessing the cost saving potential of shared product architectures

DEFF Research Database (Denmark)

Mortensen, Niels Henrik; Hansen, Christian Lindschou; Løkkegaard, Martin

2016-01-01

company. Experiences from the case company show it is possible to reduce the number of architectures with 60% which leads to significant reduction in direct material and labor costs. This can be achieved without compromising the market offerings of products. Experiences from the case study indicate cost......This article presents a method for calculating cost savings of shared architectures in industrial companies called Architecture Mapping and Evaluation. The main contribution is an operational method to evaluate the cost potential and evaluate the number of product architectures in an industrial...

Rape oil for technical uses - a cost-benefit analysis. A cost-benefit analysis of the production and use of rape oil as fuels and lubricants and for technical purposes

International Nuclear Information System (INIS)

Kleinhanss, W.; Kerckow, B.; Schrader, H.

1992-01-01

A brief description of the methodical fundamentals of cost-benefit analyses, the quantitative analytical models and the relevant data basis is followed by a survey of existing and potential rape oil uses. Basic data for the economic evaluation of rape seed production, rape oil production and rape oil uses are compiled, and the potentials of rape oil marketing in the Federal Republic of Germany are evaluated. The results of an evaluation of the importance of rape oil to the national trade and industry are discussed considering the optimum large-scale expansion of rape oil production, the individual uses, technical concepts, and the economic significance of technical progress. The cost benefit analysis and subsequent evaluation are based on a comparative evaluation of the additional rape oil production and of the grain production which has been giving way to rape production. In accordance with the assumed world market reference conditions rape oil production and rape oil/byproduct uses compete with grain exports at world market prices. The rape oil production costs are estimated applying the marginal costing principle, i.e production costs and follow-up effects are quantified by means of a modified regionally differentiated simulation model assuming the local conditions applicable to the Federal Republic of Germany. Four scenarios for projection of EC agricultural prices, world market prices and energy prices through 2000 are made available to level the different basic economic conditions. (UA) [de

Model for predicting fabric filter and ESP costs

International Nuclear Information System (INIS)

Hoskins, W.; Terrill, J.K.

1992-01-01

United Engineers and Constructors (UE and C) has developed a personal computer (PC) based program (Model) for estimating capital and operating costs of fabric filters (FFs) and electrostatic precipitators (ESPs). The program contains proprietary sizing routines for both types of particulate control devices. For the FF, it determines the number of compartments, number of bags, physical dimensions and other important information. For the ESP, it determines specific collection area (SCA), number of cells, and number of TR sets. This paper reports that the program has the capability of handling a wide range of gas flows. It adjusts construction costs for the labor productivity factors in different locations. The capital costs are considered conceptual in nature with an absolute accuracy range of ±25%. The capital and operating costs are used along with economic factors to determine present worth costs. This allows site specific side-by-side comparisons of FFs and ESPs

76 FR 64879 - Deduction for Qualified Film and Television Production Costs

Science.gov (United States)

2011-10-19

... Deduction for Qualified Film and Television Production Costs AGENCY: Internal Revenue Service (IRS... regulations relating to deductions for the costs of producing film and television productions. Those temporary... production costs. (a) * * * (1) * * * (ii) [The text of this proposed amendment to Sec. 1.181- 1(a)(1)(ii) is...

Stochastic modelling of direct costs of pancreas disease (PD) in Norwegian farmed Atlantic salmon (Salmo salar L.).

Science.gov (United States)

Aunsmo, Arnfinn; Valle, Paul Steinar; Sandberg, Marianne; Midtlyng, Paul Johan; Bruheim, Torkjel

2010-02-01

An economic model for estimating the direct costs of disease in industrial aquaculture was developed to include the following areas: biological losses, extraordinary costs, costs of treatment, costs of prevention and insurance pay-out. Direct costs of a pancreas disease (PD) outbreak in Norwegian farmed Atlantic salmon were estimated in the model, using probability distributions for the biological losses and expenditures associated with the disease. The biological effects of PD on mortality, growth, feed conversion and carcass quality and their correlations, together with costs of prevention were established using elicited data from an expert panel, and combined with basal losses in a control model. Extraordinary costs and costs associated with treatment were collected through a questionnaire sent to staff managing disease outbreaks. Norwegian national statistics for 2007 were used for prices and production costs in the model. Direct costs associated with a PD-outbreak in a site stocked with 500,000 smolts (vs. a similar site without the disease) were estimated to NOK (Norwegian kroner) 14.4 million (5% and 95% percentile: 10.5 and 17.8) (NOK=euro0.12 or $0.17 for 2007). Production was reduced to 70% (5% and 95% percentile: 57% and 81%) saleable biomass, and at an increased production cost of NOK 6.0 per kg (5% and 95% percentile: 3.5 and 8.7). Copyright 2009 Elsevier B.V. All rights reserved.

Cost Modeling for Space Telescope

Science.gov (United States)

Stahl, H. Philip

2011-01-01

Parametric cost models are an important tool for planning missions, compare concepts and justify technology investments. This paper presents on-going efforts to develop single variable and multi-variable cost models for space telescope optical telescope assembly (OTA). These models are based on data collected from historical space telescope missions. Standard statistical methods are used to derive CERs for OTA cost versus aperture diameter and mass. The results are compared with previously published models.

Hydrogen Production Costs of Various Primary Energy Sources

International Nuclear Information System (INIS)

Choi, Jae Hyuk; Tak, Nam Il; Kim, Yong Hee; Park, Won Seok

2005-11-01

Many studies on the economical aspects of hydrogen energy technologies have been conducted with the increase of the technical and socioeconomic importance of the hydrogen energy. However, there is still no research which evaluates the economy of hydrogen production from the primary energy sources in consideration of Korean situations. In this study, the hydrogen production costs of major primary energy sources are compared in consideration of the Korean situations such as feedstock price, electricity rate, and load factor. The evaluation methodology is based on the report of the National Academy of Science (NAS) of U.S. The present study focuses on the possible future technology scenario defined by NAS. The scenario assumes technological improvement that may be achieved if present research and development (R and D) programs are successful. The production costs by the coal and natural gas are 1.1 $/kgH 2 and 1.36 $/kgH 2 , respectively. However, the fossil fuels are susceptible to the price variation depending on the oil and the raw material prices, and the hydrogen production cost also depends on the carbon tax. The economic competitiveness of the renewable energy sources such as the wind, solar, and biomass are relatively low when compared with that of the other energy sources. The estimated hydrogen production costs from the renewable energy sources range from 2.35 $/kgH 2 to 6.03 $/kgH 2 . On the other hand, the production cost by nuclear energy is lower than that of natural gas or coal when the prices of the oil and soft coal are above $50/barrel and 138 $/ton, respectively. Taking into consideration the recent rapid increase of the oil and soft coal prices and the limited fossil resource, the nuclear-hydrogen option appears to be the most economical way in the future

Maintenance cost models in deregulated power systems under opportunity costs

International Nuclear Information System (INIS)

Al-Arfaj, K.; Dahal, K.; Azaiez, M.N.

2007-01-01

In a centralized power system, the operator is responsible for scheduling maintenance. There are different types of maintenance, including corrective maintenance; predictive maintenance; preventive maintenance; and reliability-centred maintenance. The main cause of power failures is poor maintenance. As such, maintenance costs play a significant role in deregulated power systems. They include direct costs associated with material and labor costs as well as indirect costs associated with spare parts inventory, shipment, test equipment, indirect labor, opportunity costs and cost of failure. In maintenance scheduling and planning, the cost function is the only component of the objective function. This paper presented the results of a study in which different components of maintenance costs were modeled. The maintenance models were formulated as an optimization problem with single and multiple objectives and a set of constraints. The maintenance costs models could be used to schedule the maintenance activities of power generators more accurately and to identify the best maintenance strategies over a period of time as they consider failure and opportunity costs in a deregulated environment. 32 refs., 4 tabs., 4 figs

Renewable Diesel from Algal Lipids: An Integrated Baseline for Cost, Emissions, and Resource Potential from a Harmonized Model

Energy Technology Data Exchange (ETDEWEB)

Davis, R.; Fishman, D.; Frank, E. D.; Wigmosta, M. S.; Aden, A.; Coleman, A. M.; Pienkos, P. T.; Skaggs, R. J.; Venteris, E. R.; Wang, M. Q.

2012-06-01

The U.S. Department of Energy's Biomass Program has begun an initiative to obtain consistent quantitative metrics for algal biofuel production to establish an 'integrated baseline' by harmonizing and combining the Program's national resource assessment (RA), techno-economic analysis (TEA), and life-cycle analysis (LCA) models. The baseline attempts to represent a plausible near-term production scenario with freshwater microalgae growth, extraction of lipids, and conversion via hydroprocessing to produce a renewable diesel (RD) blendstock. Differences in the prior TEA and LCA models were reconciled (harmonized) and the RA model was used to prioritize and select the most favorable consortium of sites that supports production of 5 billion gallons per year of RD. Aligning the TEA and LCA models produced slightly higher costs and emissions compared to the pre-harmonized results. However, after then applying the productivities predicted by the RA model (13 g/m2/d on annual average vs. 25 g/m2/d in the original models), the integrated baseline resulted in markedly higher costs and emissions. The relationship between performance (cost and emissions) and either productivity or lipid fraction was found to be non-linear, and important implications on the TEA and LCA results were observed after introducing seasonal variability from the RA model. Increasing productivity and lipid fraction alone was insufficient to achieve cost and emission targets; however, combined with lower energy, less expensive alternative technology scenarios, emissions and costs were substantially reduced.

Current U.S. uranium production costs

International Nuclear Information System (INIS)

Steyn, J.J.; Douglas, R.F.

1989-01-01

The U.S. uranium industry has undergone significant changes in the 1980s. These changes have come about largely as a result of the much slower growth of nuclear power than that initially anticipated and the deployment of an excess uranium supply capacity by 1979. The demand and supply imbalance has led to a substantial build-up in excess inventories which will not be remedied until well into the 1990s. At the same time as domestic inventories were building, large low cost uranium deposits were being discovered and developed in Canada and Australia. Additionally, in the past year or so it has become apparent that low cost uranium from the Soviet Union and the Peoples Republic of China will increasingly become a factor in the marketplace. The soft demand, large inventories, and competitive imports, stimulated by the recently ratified U.S.-Canada Free Trade Agreement, have caused the U.S. uranium industry to contract to one-tenth of its size ten years ago, if employment is taken at the gage. In light of the foregoing, this paper examines the current U.S. uranium production cost outlook for the 1990s. It is based on a direct cost analysis of all identifiable uranium deposits, mines, and production centers

A Model of An Integration System for Operations and Cost Data Designed to Control Logistics Processes in Agricultural Enterprises

Directory of Open Access Journals (Sweden)

Karol Wajszczuk

2011-03-01

Full Text Available The paper presents a model of an integration system for operations and cost data designed for the needs of process controlling in agricultural enterprises, with special emphasis on logistics processes. The proposed model constituted the basis for the development of an IT tool to be used in the identification and analysis of logistics costs in agricultural enterprises in terms of the process based approach. As a result of research and programming efforts a model was developed, which made it possible in agricultural enterprises to determine the type-based relationship of cost dynamics and structure with realized actions, operating processes (including logistics processes and products, as well as the relationship of these costs with used resources, maintained stocks, applied materials and work methods. Moreover, this model facilitates cost allocation to products and processes as well as cost centers and points, and makes it possible to determine multidimensional dependencies of the result (divided into individual products on incurred costs.

Proposed Reliability/Cost Model

Science.gov (United States)

Delionback, L. M.

1982-01-01

New technique estimates cost of improvement in reliability for complex system. Model format/approach is dependent upon use of subsystem cost-estimating relationships (CER's) in devising cost-effective policy. Proposed methodology should have application in broad range of engineering management decisions.

An integrated TSP-GA with EOL cost model for selecting the best EOL option

Directory of Open Access Journals (Sweden)

Zakri Ghazalli

2011-10-01

Full Text Available This paper presents our research works on integrating design for disassembly with cost model for end-of-life (EOL product. This paper has two objectives. The first objective is to optimize disassembly sequence of the EOL product. We integrate a traveling salesman problem approach with genetic algorithm in finding the optimal disassembly sequence for disassembling the EOL product. Based on this optimal sequence, the second objective is to identify the best EOL option. We employ EOL profits and net present value of parts and subassemblies of the EOL product to determine the best EOL option of components and parts of the EOL product. The predicted results showed that the developed cost model has reached a good correspondence with the established methods.

The influence of network characteristics on costs in pharmaceutical new product development

DEFF Research Database (Denmark)

Buonansegna, Erika; Schultz, Carsten; Stargardt, Tom

2015-01-01

This paper develops a model relating prior experiences, network stability, exclusive partnership, geographical distance, and intermediation in inter-firm R&D networks to new product development (NPD) costs. The developed hypotheses are tested with unique multilevel R&D partnership data from 33...... becomes relevant for non-exclusive partnerships and dispersed networks. NPD costs also increase in more stable networks, reflecting the relevance of structural holes for control and information advantages. This study contributes to the network management literature by understanding the relation between...

System Evaluations and Life-Cycle Cost Analyses for High-Temperature Electrolysis Hydrogen Production Facilities

Energy Technology Data Exchange (ETDEWEB)

Edwin A. Harvego; James E. O' Brien; Michael G. McKellar

2012-05-01

This report presents results of system evaluations and lifecycle cost analyses performed for several different commercial-scale high-temperature electrolysis (HTE) hydrogen production concepts. The concepts presented in this report rely on grid electricity and non-nuclear high-temperature process heat sources for the required energy inputs. The HYSYS process analysis software was used to evaluate both central plant designs for large-scale hydrogen production (50,000 kg/day or larger) and forecourt plant designs for distributed production and delivery at about 1,500 kg/day. The HYSYS software inherently ensures mass and energy balances across all components and it includes thermodynamic data for all chemical species. The optimized designs described in this report are based on analyses of process flow diagrams that included realistic representations of fluid conditions and component efficiencies and operating parameters for each of the HTE hydrogen production configurations analyzed. As with previous HTE system analyses performed at the INL, a custom electrolyzer model was incorporated into the overall process flow sheet. This electrolyzer model allows for the determination of the average Nernst potential, cell operating voltage, gas outlet temperatures, and electrolyzer efficiency for any specified inlet steam, hydrogen, and sweep-gas flow rates, current density, cell active area, and external heat loss or gain. The lifecycle cost analyses were performed using the H2A analysis methodology developed by the Department of Energy (DOE) Hydrogen Program. This methodology utilizes spreadsheet analysis tools that require detailed plant performance information (obtained from HYSYS), along with financial and cost information to calculate lifecycle costs. There are standard default sets of assumptions that the methodology uses to ensure consistency when comparing the cost of different production or plant design options. However, these assumptions may also be varied within the

The Effect of Safety Costs on Productivity and Quality: A Case Study of Five Steel Companies in Ahvaz

Directory of Open Access Journals (Sweden)

Gholamabbas Shirali

2016-10-01

Full Text Available Background The implementation of a safety program is one of the most effective factors in increasing productivity. A look to safety from the perspective of efficiency can indicate necessary investment in safety for all, especially the managers of companies. Objectives The aim of this study was to evaluate the effect of safety costs on some indicators of productivity and quality in industrial companies. Methods This study was a retrospective analysis and was implemented in five steel companies in Ahvaz. The data relating to the safety costs such as staffing costs and total safety costs, and productivity and quality indicators were collected in five years. This information and data were collected according to statistics from documents and archives of safety, accounting, and production sectors of companies. Costs as well as numbers and figures of variables were expressed in the form of per capita and percentage to make the data comparable. Linear and generalized regression models and Wald Chi-Square test were used by the SPSS 22 software to determine the relationships between them. Results Safety costs such as capita labor safety costs and capita total safety costs or percentage safety labor costs to labor costs, showed a significant positive effect on labor productivity, labor competitiveness, total factor productivity, quality index and production rates (in some cases, P = 0.001. Conclusions The total safety cost and safety labor compensation generally, regardless of the nature and quality of the safety management system, can impact productivity, quality and quantity of production in addition to other factors of production. Surely if safety programs are targeted and codified, the effect of the investment will be doubled.

PLACE OF PRODUCTION COSTS SYSTEM ANALYSIS IN SYSTEM ANALYSIS

Directory of Open Access Journals (Sweden)

Mariia CHEREDNYCHENKO

2016-12-01

Full Text Available Current economic conditions require the development and implementation of an adequate system of production costs, which would ensure a steady profit growth and production volumes in a highly competitive, constantly increasing input prices and tariffs. This management system must be based on an integrated production costs system analysis (PCSA, which would provide all operating costs management subsystems necessary information to design and make better management decisions. It provides a systematic analysis of more opportunities in knowledge, creating conditions of integrity mechanism knowledge object consisting of elements that show intersystem connections, each of which has its own defined and limited objectives, relationship with the environment.

Benchmarking in pathology: development of an activity-based costing model.

Science.gov (United States)

Burnett, Leslie; Wilson, Roger; Pfeffer, Sally; Lowry, John

2012-12-01

Benchmarking in Pathology (BiP) allows pathology laboratories to determine the unit cost of all laboratory tests and procedures, and also provides organisational productivity indices allowing comparisons of performance with other BiP participants. We describe 14 years of progressive enhancement to a BiP program, including the implementation of 'avoidable costs' as the accounting basis for allocation of costs rather than previous approaches using 'total costs'. A hierarchical tree-structured activity-based costing model distributes 'avoidable costs' attributable to the pathology activities component of a pathology laboratory operation. The hierarchical tree model permits costs to be allocated across multiple laboratory sites and organisational structures. This has enabled benchmarking on a number of levels, including test profiles and non-testing related workload activities. The development of methods for dealing with variable cost inputs, allocation of indirect costs using imputation techniques, panels of tests, and blood-bank record keeping, have been successfully integrated into the costing model. A variety of laboratory management reports are produced, including the 'cost per test' of each pathology 'test' output. Benchmarking comparisons may be undertaken at any and all of the 'cost per test' and 'cost per Benchmarking Complexity Unit' level, 'discipline/department' (sub-specialty) level, or overall laboratory/site and organisational levels. We have completed development of a national BiP program. An activity-based costing methodology based on avoidable costs overcomes many problems of previous benchmarking studies based on total costs. The use of benchmarking complexity adjustment permits correction for varying test-mix and diagnostic complexity between laboratories. Use of iterative communication strategies with program participants can overcome many obstacles and lead to innovations.

Breast and prostate cancer productivity costs: a comparison of the human capital approach and the friction cost approach.

Science.gov (United States)

Hanly, Paul; Timmons, Aileen; Walsh, Paul M; Sharp, Linda

2012-05-01

Productivity costs constitute a substantial proportion of the total societal costs associated with cancer. We compared the results of applying two different analytical methods--the traditional human capital approach (HCA) and the emerging friction cost approach (FCA)--to estimate breast and prostate cancer productivity costs in Ireland in 2008. Data from a survey of breast and prostate cancer patients were combined with population-level survival estimates and a national wage data set to calculate costs of temporary disability (cancer-related work absence), permanent disability (workforce departure, reduced working hours), and premature mortality. For breast cancer, productivity costs per person using the HCA were € 193,425 and those per person using the FCA were € 8,103; for prostate cancer, the comparable estimates were € 109,154 and € 8,205, respectively. The HCA generated higher costs for younger patients (breast cancer) because of greater lifetime earning potential. In contrast, the FCA resulted in higher productivity costs for older male patients (prostate cancer) commensurate with higher earning capacity over a shorter time period. Reduced working hours postcancer was a key driver of total HCA productivity costs. HCA costs were sensitive to assumptions about discount and growth rates. FCA costs were sensitive to assumptions about the friction period. The magnitude of the estimates obtained in this study illustrates the importance of including productivity costs when considering the economic impact of illness. Vastly different results emerge from the application of the HCA and the FCA, and this finding emphasizes the importance of choosing the study perspective carefully and being explicit about assumptions that underpin the methods. Copyright © 2012 International Society for Pharmacoeconomics and Outcomes Research (ISPOR). Published by Elsevier Inc. All rights reserved.

Design models in the development of mechatronic products

DEFF Research Database (Denmark)

Habib, Tufail; Brunø, Thomas Ditlev; Nielsen, Kjeld

2012-01-01

In view of widespread application of mechatronic systems and the competition to offer customized products at high quality and low cost, there has been considerable attention to introduce new methods and models in this regard. This paper explores design process of mechatronic product development w...

No apparent costs for facultative antibiotic production by the soil bacterium Pseudomonas fluorescens Pf0-1

NARCIS (Netherlands)

Garbeva, P.V.; Tyc, O.; Remus-Emsermann, M.N.P.; Van der Wal, A.; Vos, M.; Silby, M.W.; De Boer, W.

2011-01-01

Background: Many soil-inhabiting bacteria are known to produce secondary metabolites that can suppress microorganisms competing for the same resources. The production of antimicrobial compounds is expected to incur fitness costs for the producing bacteria. Such costs form the basis for models on the

Implementing a trustworthy cost-accounting model.

Science.gov (United States)

Spence, Jay; Seargeant, Dan

2015-03-01

Hospitals and health systems can develop an effective cost-accounting model and maximize the effectiveness of their cost-accounting teams by focusing on six key areas: Implementing an enhanced data model. Reconciling data efficiently. Accommodating multiple cost-modeling techniques. Improving transparency of cost allocations. Securing department manager participation. Providing essential education and training to staff members and stakeholders.

Testing Software Development Project Productivity Model

Science.gov (United States)

Lipkin, Ilya

Software development is an increasingly influential factor in today's business environment, and a major issue affecting software development is how an organization estimates projects. If the organization underestimates cost, schedule, and quality requirements, the end results will not meet customer needs. On the other hand, if the organization overestimates these criteria, resources that could have been used more profitably will be wasted. There is no accurate model or measure available that can guide an organization in a quest for software development, with existing estimation models often underestimating software development efforts as much as 500 to 600 percent. To address this issue, existing models usually are calibrated using local data with a small sample size, with resulting estimates not offering improved cost analysis. This study presents a conceptual model for accurately estimating software development, based on an extensive literature review and theoretical analysis based on Sociotechnical Systems (STS) theory. The conceptual model serves as a solution to bridge organizational and technological factors and is validated using an empirical dataset provided by the DoD. Practical implications of this study allow for practitioners to concentrate on specific constructs of interest that provide the best value for the least amount of time. This study outlines key contributing constructs that are unique for Software Size E-SLOC, Man-hours Spent, and Quality of the Product, those constructs having the largest contribution to project productivity. This study discusses customer characteristics and provides a framework for a simplified project analysis for source selection evaluation and audit task reviews for the customers and suppliers. Theoretical contributions of this study provide an initial theory-based hypothesized project productivity model that can be used as a generic overall model across several application domains such as IT, Command and Control

A game-theoretical model of private power production

International Nuclear Information System (INIS)

Xing, W.; Wu, F.F.

2001-01-01

Private power production has sprung up all over the world. The build-operate-transfer (BOT) arrangement has emerged as one of the most important options for private power production, especially in developing countries with rapidly growing demand and financial shortages. Based on oligopoly theory, the paper proposes a Stackelberg game model between a BOT investor and an electric utility whereby they can negotiate a long-term energy contract. Asymmetric pricing schemes are taken into account such that a host utility purchases electricity from a BOT company at its ''avoided cost'', and sells its electricity to end users at its ''average cost''. Our Stackelberg game model is transferred into a two-level optimization problem, and then solved by an iterative algorithm. The game model is demonstrated by an illustrative example. (author)

Forecasting of energy and diesel consumption and the cost of energy production in isolated electrical systems in the Amazon using a fuzzification process in time series models

Energy Technology Data Exchange (ETDEWEB)

Neto, Joao C. do L, E-mail: jcaldas@ufam.edu.br [Group of Optimization and Fuzzy Systems, Federal University of Amazonas, General Rodrigo Octavio Jordao Ramos Avenue, 3000, Academic Campus, 69077-000 Manaus, Amazonas (Brazil); Costa Junior, Carlos T. da [Postgraduate Program in Electrical Engineering, Institute of Technology, Federal University of Para, Augusto Correa Street, 1, Guama, 66075-900 Belem, Para (Brazil); Bitar, Sandro D.B. [Group of Optimization and Fuzzy Systems, Federal University of Amazonas, General Rodrigo Octavio Jordao Ramos Avenue, 3000, Academic Campus, 69077-000 Manaus, Amazonas (Brazil); Junior, Walter B. [Postgraduate Program in Electrical Engineering, Institute of Technology, Federal University of Para, Augusto Correa Street, 1, Guama, 66075-900 Belem, Para (Brazil)

2011-09-15

Understanding the uncertainty inherent in the analysis of diesel fuel consumption and its impact on the generation of electricity is an important topic for planning the expansion of isolated thermoelectric systems in the state of Amazonas. In light of this, a decision support system has been developed to forecast the cost of electricity production using non-stationary data by integrating the methodology of time series models with fuzzy systems and optimization tools. The method presented herein combines the potential of the Autoregressive Integrated Moving Average (ARIMA) and the Seasonal ARIMA (SARIMA) models, such as the forecasting tool, with the advantages of fuzzy set theory to compensate for the uncertainties and errors encountered in the observed data, which would degrade the validity of forecasted values. The results show that incorporation of the {alpha}-cut concept facilitated the evaluation of risks while allowing simultaneous consideration of intervals for the unitary cost of energy production. This provides the analyst with the ability to make decisions using various predicted intervals with different membership values instead of the common practice of simply using the specific costs. - Highlights: > A decision support system has been developed using SARIMA with fuzzy systems and optimizations tools. > It assists the decision-making process for planning the expansion in isolated thermoelectric systems. > The {alpha}-cut concept facilitated the evaluation of risks for the cost of electricity production. > Provides decisions using various forecasted interval for this cost with different membership values.

Forecasting of energy and diesel consumption and the cost of energy production in isolated electrical systems in the Amazon using a fuzzification process in time series models

International Nuclear Information System (INIS)

Neto, Joao C. do L; Costa Junior, Carlos T. da; Bitar, Sandro D.B.; Junior, Walter B.

2011-01-01

Understanding the uncertainty inherent in the analysis of diesel fuel consumption and its impact on the generation of electricity is an important topic for planning the expansion of isolated thermoelectric systems in the state of Amazonas. In light of this, a decision support system has been developed to forecast the cost of electricity production using non-stationary data by integrating the methodology of time series models with fuzzy systems and optimization tools. The method presented herein combines the potential of the Autoregressive Integrated Moving Average (ARIMA) and the Seasonal ARIMA (SARIMA) models, such as the forecasting tool, with the advantages of fuzzy set theory to compensate for the uncertainties and errors encountered in the observed data, which would degrade the validity of forecasted values. The results show that incorporation of the α-cut concept facilitated the evaluation of risks while allowing simultaneous consideration of intervals for the unitary cost of energy production. This provides the analyst with the ability to make decisions using various predicted intervals with different membership values instead of the common practice of simply using the specific costs. - Highlights: → A decision support system has been developed using SARIMA with fuzzy systems and optimizations tools. → It assists the decision-making process for planning the expansion in isolated thermoelectric systems. → The α-cut concept facilitated the evaluation of risks for the cost of electricity production. → Provides decisions using various forecasted interval for this cost with different membership values.

How does accounting for worker productivity affect the measured cost-effectiveness of lumbar discectomy?

Science.gov (United States)

Koenig, Lane; Dall, Timothy M; Gu, Qian; Saavoss, Josh; Schafer, Michael F

2014-04-01

Back pain attributable to lumbar disc herniation is a substantial cause of reduced workplace productivity. Disc herniation surgery is effective in reducing pain and improving function. However, few studies have examined the effects of surgery on worker productivity. We wished to determine the effect of disc herniation surgery on workers' earnings and missed workdays and how accounting for this effect influences the cost-effectiveness of surgery? Regression models were estimated using data from the National Health Interview Survey to assess the effects of lower back pain caused by disc herniation on earnings and missed workdays. The results were incorporated into Markov models to compare societal costs associated with surgical and nonsurgical treatments for privately insured, working patients. Clinical outcomes and utilities were based on results from the Spine Patient Outcomes Research Trial and additional clinical literature. We estimate average annual earnings of $47,619 with surgery and $45,694 with nonsurgical treatment. The increased earnings for patients receiving surgery as compared with nonsurgical treatment is equal to $1925 (95% CI, $1121-$2728). After surgery, we also estimate that workers receiving surgery miss, on average, 3 fewer days per year than if workers had received nonsurgical treatment (95% CI, 2.4-3.7 days). However, these fewer missed work days only partially offset the assumed 20 workdays missed to recover from surgery. More fully accounting for the effects of disc herniation surgery on productivity reduced the cost of surgery per quality-adjusted life year (QALY) from $52,416 to $35,146 using a 4-year time horizon and from $27,359 to $4186 using an 8-year time horizon. According to a sensitivity analysis, the 4-year cost per QALY varies between $27,921 and $49,787 depending on model assumptions. Increased worker earnings resulting from disc herniation surgery may offset the increased direct medical costs associated with surgery. After

Attrition Cost Model Instruction Manual

Science.gov (United States)

Yanagiura, Takeshi

2012-01-01

This instruction manual explains in detail how to use the Attrition Cost Model program, which estimates the cost of student attrition for a state's higher education system. Programmed with SAS, this model allows users to instantly calculate the cost of attrition and the cumulative attrition rate that is based on the most recent retention and…

External costs of electricity production: case study Croatia

International Nuclear Information System (INIS)

Bozicevic Vrhovcak, Maja; Tomsic, Zeljko; Debrecin, Nenad

2005-01-01

Because electricity production is one of the major sources of pollution, and at the same time is the most centralised one, environmental issues in power system operation and planning are gaining ever-increasing attention. It is very difficult to compare environmental impacts of various electricity generation technologies and fuel types because they are extremely divergent. The most widely accepted common denominator today is the so-called external cost by which a monetary value is associated with environmental damage. In this paper, damages to human health resulting from Croatian thermal power plants annual operation are presented. Stack emissions have been translated into ambient concentrations by atmospheric dispersion modelling. Existing data on relations between human health degradation and ground concentrations of the analysed pollutants have been used. Geographic information software has been used in order to account for spatially dependent data. Monetary values have been assigned to the estimated human health damage. External costs resulting from impact of Croatian thermal power plants airborne emissions on human health have been calculated. The total Croatian thermal power system external costs, resulting from impacts on human health, are presented and discussed

A system dynamics model to determine products mix

Directory of Open Access Journals (Sweden)

Mahtab Hajghasem

2014-02-01

Full Text Available This paper presents an implementation of system dynamics model to determine appropriate product mix by considering various factors such as labor, materials, overhead, etc. for an Iranian producer of cosmetic and sanitary products. The proposed model of this paper considers three hypotheses including the relationship between product mix and profitability, optimum production capacity and having minimum amount of storage to take advantage of low cost production. The implementation of system dynamics on VENSIM software package has confirmed all three hypotheses of the survey and suggested that in order to reach better mix product, it is necessary to reach optimum production planning, take advantage of all available production capacities and use inventory management techniques.

73 Activity Based Costing and Product Pricing Decision: the Nigerian Case

Directory of Open Access Journals (Sweden)

Ebipanipre Gabriel Mieseigha

2014-06-01

Full Text Available This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management.

Preliminary Cost Model for Space Telescopes

Science.gov (United States)

Stahl, H. Philip; Prince, F. Andrew; Smart, Christian; Stephens, Kyle; Henrichs, Todd

2009-01-01

Parametric cost models are routinely used to plan missions, compare concepts and justify technology investments. However, great care is required. Some space telescope cost models, such as those based only on mass, lack sufficient detail to support such analysis and may lead to inaccurate conclusions. Similarly, using ground based telescope models which include the dome cost will also lead to inaccurate conclusions. This paper reviews current and historical models. Then, based on data from 22 different NASA space telescopes, this paper tests those models and presents preliminary analysis of single and multi-variable space telescope cost models.

Cost Concept Model and Gateway Specification

DEFF Research Database (Denmark)

Kejser, Ulla Bøgvad

2014-01-01

This document introduces a Framework supporting the implementation of a cost concept model against which current and future cost models for curating digital assets can be benchmarked. The value built into this cost concept model leverages the comprehensive engagement by the 4C project with various...... to promote interoperability; • A Nested Model for Digital Curation—that visualises the core concepts, demonstrates how they interact and places them into context visually by linking them to A Cost and Benefit Model for Curation; This Framework provides guidance for data collection and associated calculations...

Understanding the reductions in US corn ethanol production costs: An experience curve approach

International Nuclear Information System (INIS)

Hettinga, W.G.; Junginger, H.M.; Dekker, S.C.; Hoogwijk, M.; McAloon, A.J.; Hicks, K.B.

2009-01-01

The US is currently the world's largest ethanol producer. An increasing percentage is used as transportation fuel, but debates continue on its costs competitiveness and energy balance. In this study, technological development of ethanol production and resulting cost reductions are investigated by using the experience curve approach, scrutinizing costs of dry grind ethanol production over the timeframe 1980-2005. Cost reductions are differentiated between feedstock (corn) production and industrial (ethanol) processing. Corn production costs in the US have declined by 62% over 30 years, down to 100$ 2005 /tonne in 2005, while corn production volumes almost doubled since 1975. A progress ratio (PR) of 0.55 is calculated indicating a 45% cost decline over each doubling in cumulative production. Higher corn yields and increasing farm sizes are the most important drivers behind this cost decline. Industrial processing costs of ethanol have declined by 45% since 1983, to below 130$ 2005 /m 3 in 2005 (excluding costs for corn and capital), equivalent to a PR of 0.87. Total ethanol production costs (including capital and net corn costs) have declined approximately 60% from 800$ 2005 /m 3 in the early 1980s, to 300$ 2005 /m 3 in 2005. Higher ethanol yields, lower energy use and the replacement of beverage alcohol-based production technologies have mostly contributed to this substantial cost decline. In addition, the average size of dry grind ethanol plants increased by 235% since 1990. For the future it is estimated that solely due to technological learning, production costs of ethanol may decline 28-44%, though this excludes effects of the current rising corn and fossil fuel costs. It is also concluded that experience curves are a valuable tool to describe both past and potential future cost reductions in US corn-based ethanol production

ABOUT THE INFORMATIZATION MANAGING OF THE PRODUCTION SYSTEM BASED ON THE MATRIX MODEL

Directory of Open Access Journals (Sweden)

Aleksandr V. Romanenko

2016-06-01

Full Text Available Introduction. The problem of formation and information management systems management of manufacturing system businesses is analyzed in the article. Existing schemes of the Russian economy increased demands for its efficiency. Stability integrative model business entity lifecycle requires a search for solutions based on new technologies in the organization and operation of information management systems. Results. On the basis of the analysis of their importance for sustainability of the entity components of its life cycle conclusions are made about the applicability of the matrix model to the production system management. Contradiction in the application of this management model are solved by separating the information on the basis of the state of product and process state. This division contributes to a better organization of the distribution of responsibility between the profit centers and cost centers. As an indicator of the efficiency of profit centers, it is proposed to use the ratio revenue net from the sale of products to the current value of the planned costs of its production. To assess the effectiveness of cost centers used index that is similar to profitability of fixed assets taking into account the cost of resources utilized by each cost center separately. Discussion and Conclusions. We analyze the relationship between goals management of the production system with the role of profit centers and cost centers. The proposed basis of the formation model information ensures the management of the production system, contributing to improve the quality of managerial decisions in implementing the competitive advantages of business entity.

Cost Model Comparison: A Study of Internally and Commercially Developed Cost Models in Use by NASA

Science.gov (United States)

Gupta, Garima

2011-01-01

NASA makes use of numerous cost models to accurately estimate the cost of various components of a mission - hardware, software, mission/ground operations - during the different stages of a mission's lifecycle. The purpose of this project was to survey these models and determine in which respects they are similar and in which they are different. The initial survey included a study of the cost drivers for each model, the form of each model (linear/exponential/other CER, range/point output, capable of risk/sensitivity analysis), and for what types of missions and for what phases of a mission lifecycle each model is capable of estimating cost. The models taken into consideration consisted of both those that were developed by NASA and those that were commercially developed: GSECT, NAFCOM, SCAT, QuickCost, PRICE, and SEER. Once the initial survey was completed, the next step in the project was to compare the cost models' capabilities in terms of Work Breakdown Structure (WBS) elements. This final comparison was then portrayed in a visual manner with Venn diagrams. All of the materials produced in the process of this study were then posted on the Ground Segment Team (GST) Wiki.

Video distribution system cost model

Science.gov (United States)

Gershkoff, I.; Haspert, J. K.; Morgenstern, B.

1980-01-01

A cost model that can be used to systematically identify the costs of procuring and operating satellite linked communications systems is described. The user defines a network configuration by specifying the location of each participating site, the interconnection requirements, and the transmission paths available for the uplink (studio to satellite), downlink (satellite to audience), and voice talkback (between audience and studio) segments of the network. The model uses this information to calculate the least expensive signal distribution path for each participating site. Cost estimates are broken downy by capital, installation, lease, operations and maintenance. The design of the model permits flexibility in specifying network and cost structure.

Analysis of the production and transaction costs of forest carbon offset projects in the USA.

Science.gov (United States)

Galik, Christopher S; Cooley, David M; Baker, Justin S

2012-12-15

Forest carbon offset project implementation costs, comprised of both production and transaction costs, could present an important barrier to private landowner participation in carbon offset markets. These costs likewise represent a largely undocumented component of forest carbon offset potential. Using a custom spreadsheet model and accounting tool, this study examines the implementation costs of different forest offset project types operating in different forest types under different accounting and sampling methodologies. Sensitivity results are summarized concisely through response surface regression analysis to illustrate the relative effect of project-specific variables on total implementation costs. Results suggest that transaction costs may represent a relatively small percentage of total project implementation costs - generally less than 25% of the total. Results also show that carbon accounting methods, specifically the method used to establish project baseline, may be among the most important factors in driving implementation costs on a per-ton-of-carbon-sequestered basis, dramatically increasing variability in both transaction and production costs. This suggests that accounting could be a large driver in the financial viability of forest offset projects, with transaction costs likely being of largest concern to those projects at the margin. Copyright © 2012 Elsevier Ltd. All rights reserved.

A comparison of production system life cycle models

Science.gov (United States)

Attri, Rajesh; Grover, Sandeep

2012-09-01

Companies today need to keep up with the rapidly changing market conditions to stay competitive. The main issues in this paper are related to a company's market and its competitors. The prediction of market behavior is helpful for a manufacturing enterprise to build efficient production systems. However, these predictions are usually not reliable. A production system is required to adapt to changing markets, but such requirement entails higher cost. Hence, analyzing different life cycle models of the production system is necessary. In this paper, different life cycle models of the production system are compared to evaluate the distinctive features and the limitations of each model. Furthermore, the difference between product life cycle and production life cycle is summarized, and the effect of product life cycle on production life cycle is explained. Finally, a production system life cycle model, along with key activities to be performed in each stage, is proposed specifically for the manufacturing sector.

Layout Optimization Model for the Production Planning of Precast Concrete Building Components

Directory of Open Access Journals (Sweden)

Dong Wang

2018-05-01

Full Text Available Precast concrete comprises the basic components of modular buildings. The efficiency of precast concrete building component production directly impacts the construction time and cost. In the processes of precast component production, mold setting has a significant influence on the production efficiency and cost, as well as reducing the resource consumption. However, the development of mold setting plans is left to the experience of production staff, with outcomes dependent on the quality of human skill and experience available. This can result in sub-optimal production efficiencies and resource wastage. Accordingly, in order to improve the efficiency of precast component production, this paper proposes an optimization model able to maximize the average utilization rate of pallets used during the molding process. The constraints considered were the order demand, the size of the pallet, layout methods, and the positional relationship of components. A heuristic algorithm was used to identify optimization solutions provided by the model. Through empirical analysis, and as exemplified in the case study, this research is significant in offering a prefabrication production planning model which improves pallet utilization rates, shortens component production time, reduces production costs, and improves the resource utilization. The results clearly demonstrate that the proposed method can facilitate the precast production plan providing strong practical implications for production planners.

An economic production model for deteriorating items and time dependent demand with rework and multiple production setups

Science.gov (United States)

Uthayakumar, R.; Tharani, S.

2017-12-01

Recently, much emphasis has given to study the control and maintenance of production inventories of the deteriorating items. Rework is one of the main issues in reverse logistic and green supply chain, since it can reduce production cost and the environmental problem. Many researchers have focused on developing rework model, but few of them have developed model for deteriorating items. Due to this fact, we take up productivity and rework with deterioration as the major concern in this paper. In this paper, a production-inventory model with deteriorative items in which one cycle has n production setups and one rework setup (n, 1) policy is considered for deteriorating items with stock-dependent demand in case 1 and exponential demand in case 2. An effective iterative solution procedure is developed to achieve optimal time, so that the total cost of the system is minimized. Numerical and sensitivity analyses are discussed to examine the outcome of the proposed solution procedure presented in this research.

Selected Tether Applications Cost Model

Science.gov (United States)

Keeley, Michael G.

1988-01-01

Diverse cost-estimating techniques and data combined into single program. Selected Tether Applications Cost Model (STACOM 1.0) is interactive accounting software tool providing means for combining several independent cost-estimating programs into fully-integrated mathematical model capable of assessing costs, analyzing benefits, providing file-handling utilities, and putting out information in text and graphical forms to screen, printer, or plotter. Program based on Lotus 1-2-3, version 2.0. Developed to provide clear, concise traceability and visibility into methodology and rationale for estimating costs and benefits of operations of Space Station tether deployer system.

Activity based costing model for inventory valuation

Directory of Open Access Journals (Sweden)

Vineet Chouhan

2017-03-01

Full Text Available Activity-Based-Model (ABC is used for the purpose of significant improvement for overhead accounting systems by providing the best information required for managerial decision. This pa-per discusses implacability of ABC technique on inventory valuation as a management account-ing innovation. In order to prove the applicability of ABC for inventory control a material driven medium-sized and privately owned company from engineering (iron and steel industry is select-ed and by analysis of its production process and its material dependency and use of indirect in-ventory, an ABC model is explored for better inventory control. The case revealed that the ne-cessity of ABC in the area of inventory control is significant. The company is not only able to increase its quality of decision but also it can significantly analyze its cost of direct material cost, valuation of direct material and use its implications for better decision making.

Cogeneration Power Plants: a Proposed Methodology for Unitary Production Cost

International Nuclear Information System (INIS)

Metalli, E.

2009-01-01

A new methodology to evaluate unitary energetic production costs in the cogeneration power plants is proposed. This methodology exploits the energy conversion factors fixed by Italian Regulatory Authority for Electricity and Gas. So it allows to settle such unitary costs univocally for a given plant, without assigning them a priori subjective values when there are two or more energy productions at the same time. Moreover the proposed methodology always ensures positive values for these costs, complying with the total generation cost balance equation. [it

Modeling and Optimization of Inventory-Distribution Routing Problem for Agriculture Products Supply Chain

OpenAIRE

Liao, Li; Li, Jianfeng; Wu, Yaohua

2013-01-01

Mathematical models of inventory-distribution routing problem for two-echelon agriculture products distribution network are established, which are based on two management modes, franchise chain and regular chain, one-to-many, interval periodic order, demand depending on inventory, deteriorating treatment cost of agriculture products, start-up costs of vehicles and so forth. Then, a heuristic adaptive genetic algorithm is presented for the model of franchise chain. For the regular chain model,...

Preliminary design of a low-cost greenhouse for salt production in Indonesia

Science.gov (United States)

Jaziri, A. A.; Guntur; Setiawan, W.; Prihanto, A. A.; Kurniawan, A.

2018-04-01

Salt is an assential material of industry, not only in food industry point of view but also in various industries such as chemical, oil drilling, and animal feed industries, even less than half of salt needs used to household consumption. It is crucial to ensure salt production in Indonesia reaches the national target (3.7 million tons) due to relatively low technology and production level. Thus salt production technology is developed to facilitate farmers consisted of geomembrane and filtering-threaded technology. However, the use of those technologies in producing salt was proved less effective due to unpredictable weather conditions. Therefore, greenhouse technology is proposed to be used for salt production for several good reasons. This paper describes the preliminary design of a low-cost greenhouse designed as a pyramid model that uses bamboo, mono-layer and high density polyethylene plastics. The results confirmed that the yield of salt produced by greenhouse significantly incresed compared with prior technology and the NaCl content increased as well. The cost of greenhouse was IDR 5,688,000 and easy to assembly.

Social costs of loss in productivity-related absenteeism in Poland.

Science.gov (United States)

Genowska, Agnieszka; Fryc, Justyna; Pinkas, Jarosław; Jamiołkowski, Jacek; Szafraniec, Krystyna; Szpak, Andrzej; Bojar, Iwona

2017-10-06

The aim of this study was to estimate indirect costs associated with losses in productivity due to sickness absence among registered workers in Poland. Data on sick leave durations in 2013 was obtained from the Social Insurance Institution (SII) (Zakład Ubezpieczeń Społecznych - ZUS). Based on the number of assumptions, this data was used for calculating absence durations. The costs of lost productivity were estimated on the basis of the measure of gross value added. Estimated losses in productivity due to absenteeism in 2013 together accounted for 4.33% of gross domestic product (GDP) (17.09 billion euro). In the female population, the total value of losses amounted to 9.66 billion euro, but excluding the costs of pregnancy, childbirth, and puerperium (2.96 billion euro), it was 6.7 billion euro. In the male population, the loss amounted to 7.43 billion euro. The highest overall costs of sickness absence based on age were found in the age group of 30-39 years (5.14 billion euro, including pregnancy, childbirth, and puerperium - 1.474 billion euro; respiratory diseases - 0.632 billion euro, injuries and poisonings - 0.62 billion euro). In the group of people aged > 40 years, the highest cost was generated by bone-muscular diseases (1.553 billion euro) and injuries and poisoning (1.251 billion euro). Higher losses in the productivity of women in addition to pregnancy, childbirth, and puerperium were due to mental and behavioral disorders (0.71 billion euro), diseases of the genitourinary system (0.38 billion euro), and neoplasms (0.35 billion euro). At the same time, in men, compared to women, we observed higher losses due to injuries and poisoning (1.65 billion euro), and diseases of musculoskeletal (1.26 billion euro), nervous (0.79 billion euro), circulatory (0.65 billion euro), and digestive (0.41 billion euro) systems. Improvement and further development of effective strategies for prevention of complications of pregnancy and chronic diseases in the

A game-theoretical model of private power production

Energy Technology Data Exchange (ETDEWEB)

Xing, W.; Wu, F.F. [University of Hong Kong (China). Dept. of Electrical and Electronic Engineering

2001-03-01

Private power production has sprung up all over the world. The build-operate-transfer (BOT) arrangement has emerged as one of the most important options for private power production, especially in developing countries with rapidly growing demand and financial shortages. Based on oligopoly theory, the paper proposes a Stackelberg game model between a BOT investor and an electric utility whereby they can negotiate a long-term energy contract. Asymmetric pricing schemes are taken into account such that a host utility purchases electricity from a BOT company at its ''avoided cost'', and sells its electricity to end users at its ''average cost''. Our Stackelberg game model is transferred into a two-level optimization problem, and then solved by an iterative algorithm. The game model is demonstrated by an illustrative example. (author)

Enhancing efficiency of production cost on seafood process with activity based management method

Science.gov (United States)

Tarigan, U.; Tarigan, U. P. P.

2018-02-01

The efficiency of production costs has an important impact maintaining company presence in the business world, as well as in the face of increasingly sharp global competition. It was done by identifying and reducing non-value-added activities to decrease production costs and increase profits. The study was conducted at a company engaged in the production of squid (seafood). It has a higher product price than the market as Rp 50,000 per kg while the market price of squid is only Rp 35,000 per kg. The price of the product to be more expensive compared with market price, and thereby a lot more consumers choose the lower market price. Based on the discussions conducted, the implementation of Activity Based Management was seen in the reduction of activities that are not added value in the production process. Since each activities consumers cost, the reduction of nonvalue-added activities has effects on the decline of production cost. The production’s decline costs mainly occur in the reduction of material transfer costs. The results showed that there was an increase after the improvement of 2.60%. Increased production cost efficiency causes decreased production costs and increased profits.

Cost Effective Technologies and Renewable Substrates for Biosurfactants’ Production

Directory of Open Access Journals (Sweden)

Ibrahim M Banat

2014-12-01

Full Text Available Diverse types of microbial surface-active amphiphilic molecules are produced by a range of microbial communities. The extraordinary properties of biosurfactant / bioemulsifier (BS/BE as surface active products allows them to have key roles in various field of applications such as bioremediation, biodegradation, enhanced oil recovery, pharmaceutics, food processing among many others. This leads to a vast number of potential applications of these BS/BE in different industrial sectors. Despite the huge number of reports and patents describing BS and BE applications and advantages, commercialization of these compounds remain difficult, costly and to a large extent irregular. This is mainly due to the usage of chemically synthesized media for growing producing microorganism and in turn the production of preferred quality products. It is important to note that although a number of developments have taken place in the field of biosurfactant industries, large scale production remains economically challenging for many types of these products. This is mainly due to the huge monetary difference between the investment and achievable productivity from the commercial point of view. This review discusses low cost, renewable raw substrates and fermentation technology in BS/BE production processes and their role in reducing the production cost.

Abatement cost of GHG emissions for wood-based electricity and ethanol at production and consumption levels.

Directory of Open Access Journals (Sweden)

Puneet Dwivedi

Full Text Available Woody feedstocks will play a critical role in meeting the demand for biomass-based energy products in the US. We developed an integrated model using comparable system boundaries and common set of assumptions to ascertain unit cost and greenhouse gas (GHG intensity of electricity and ethanol derived from slash pine (Pinus elliottii at the production and consumption levels by considering existing automobile technologies. We also calculated abatement cost of greenhouse gas (GHG emissions with respect to comparable energy products derived from fossil fuels. The production cost of electricity derived using wood chips was at least cheaper by 1 ¢ MJ-1 over electricity derived from wood pellets. The production cost of ethanol without any income from cogenerated electricity was costlier by about 0.7 ¢ MJ-1 than ethanol with income from cogenerated electricity. The production cost of electricity derived from wood chips was cheaper by at least 0.7 ¢ MJ-1 than the energy equivalent cost of ethanol produced in presence of cogenerated electricity. The cost of using ethanol as a fuel in a flex-fuel vehicle was at least higher by 6 ¢ km-1 than a comparable electric vehicle. The GHG intensity of per km distance traveled in a flex-fuel vehicle was greater or lower than an electric vehicle running on electricity derived from wood chips depending on presence and absence of GHG credits related with co-generated electricity. A carbon tax of at least $7 Mg CO2e-1 and $30 Mg CO2e-1 is needed to promote wood-based electricity and ethanol production in the US, respectively. The range of abatement cost of GHG emissions is significantly dependent on the harvest age and selected baseline especially for electricity generation.

Cost estimate for the production of ethanol from spent sulphite liquors and wood residues

International Nuclear Information System (INIS)

Nguyen, Q.

1990-03-01

A Lotus 1-2-3 spreadsheet model for estimating the production cost of 95 wt % ethanol from spent sulfite liquors (SSL) and from a wood hydrolysis front-end is described. The most economically attractive process is the fermentation of softwood SSL (SSSL) by the yeast Saccharomyces cerevisiae, yielding a production cost estimate of $0.47/liter. The cost of producing ethanol from cellulosic waste (clarifier sludge) via acid hydrolysis is approximately $0.55/liter, still below the market price of ca $0.60/liter for industrial ethanol. Neither the fermentation of hardwood SSL nor the conversion of sawdust to ethanol, using current technology, are economically viable. However, these processes can become commercially viable if acetic acid-tolerant xylose-fermenting yeasts can be found. 17 refs., 12 figs., 16 tabs

How Much? Cost Models for Online Education.

Science.gov (United States)

Lorenzo, George

2001-01-01

Reviews some of the research being done in the area of cost models for online education. Describes a cost analysis handbook; an activity-based costing model that was based on an economic model for traditional instruction at the Indiana University Purdue University Indianapolis; and blending other costing models. (LRW)

Cost reduction in deep water production systems

International Nuclear Information System (INIS)

Beltrao, R.L.C.

1995-01-01

This paper describes a cost reduction program that Petrobras has conceived for its deep water field. Beginning with the Floating Production Unit, a new concept of FPSO was established where a simple system, designed to long term testing, can be upgraded, on the location, to be the definitive production unit. Regarding to the subsea system, the following projects will be considered. (1) Subsea Manifold: There are two 8-well-diverless manifolds designed for 1,000 meters presently under construction and after a value analysis, a new design was achieved for the next generation. Both projects will be discussed and a cost evaluation will also be provided. (2) Subsea Pipelines: Petrobras has just started a large program aiming to reduce cost on this important item. There are several projects such as hybrid (flexible and rigid) pipes for large diameter in deep water, alternatives laying methods, rigid riser on FPS, new material...etc. The authors intend to provide an overview of each project

Modeling the reliability and maintenance costs of wind turbines using Weibull analysis

Energy Technology Data Exchange (ETDEWEB)

Vachon, W.A. [W.A. Vachon & Associates, Inc., Manchester, MA (United States)

1996-12-31

A general description is provided of the basic mathematics and use of Weibull statistical models for modeling component failures and maintenance costs as a function of time. The applicability of the model to wind turbine components and subsystems is discussed with illustrative examples of typical component reliabilities drawn from actual field experiences. Example results indicate the dominant role of key subsystems based on a combination of their failure frequency and repair/replacement costs. The value of the model is discussed as a means of defining (1) maintenance practices, (2) areas in which to focus product improvements, (3) spare parts inventory, and (4) long-term trends in maintenance costs as an important element in project cash flow projections used by developers, investors, and lenders. 6 refs., 8 figs., 3 tabs.

Preliminary Multivariable Cost Model for Space Telescopes

Science.gov (United States)

Stahl, H. Philip

2010-01-01

Parametric cost models are routinely used to plan missions, compare concepts and justify technology investments. Previously, the authors published two single variable cost models based on 19 flight missions. The current paper presents the development of a multi-variable space telescopes cost model. The validity of previously published models are tested. Cost estimating relationships which are and are not significant cost drivers are identified. And, interrelationships between variables are explored

From Product Models to Product State Models

DEFF Research Database (Denmark)

Larsen, Michael Holm

1999-01-01

A well-known technology designed to handle product data is Product Models. Product Models are in their current form not able to handle all types of product state information. Hence, the concept of a Product State Model (PSM) is proposed. The PSM and in particular how to model a PSM is the Research...

Calculation of Complexity Costs – An Approach for Rationalizing a Product Program

DEFF Research Database (Denmark)

Hansen, Christian Lindschou; Mortensen, Niels Henrik; Hvam, Lars

2012-01-01

This paper proposes an operational method for rationalizing a product program based on the calculation of complexity costs. The method takes its starting point in the calculation of complexity costs on a product program level. This is done throughout the value chain ranging from component invento...... of a product program. These findings represent an improved decision basis for the planning of reactive and proactive initiatives of rationalizing a product program.......This paper proposes an operational method for rationalizing a product program based on the calculation of complexity costs. The method takes its starting point in the calculation of complexity costs on a product program level. This is done throughout the value chain ranging from component...... inventories at the factory sites, all the way to the distribution of finished goods from distribution centers to the customers. The method proposes a step-wise approach including the analysis, quantification and allocation of product program complexity costs by the means of identifying of a number...

Solid rocket motor cost model

Science.gov (United States)

Harney, A. G.; Raphael, L.; Warren, S.; Yakura, J. K.

1972-01-01

A systematic and standardized procedure for estimating life cycle costs of solid rocket motor booster configurations. The model consists of clearly defined cost categories and appropriate cost equations in which cost is related to program and hardware parameters. Cost estimating relationships are generally based on analogous experience. In this model the experience drawn on is from estimates prepared by the study contractors. Contractors' estimates are derived by means of engineering estimates for some predetermined level of detail of the SRM hardware and program functions of the system life cycle. This method is frequently referred to as bottom-up. A parametric cost analysis is a useful technique when rapid estimates are required. This is particularly true during the planning stages of a system when hardware designs and program definition are conceptual and constantly changing as the selection process, which includes cost comparisons or trade-offs, is performed. The use of cost estimating relationships also facilitates the performance of cost sensitivity studies in which relative and comparable cost comparisons are significant.

Fuzzy production planning models for an unreliable production system with fuzzy production rate and stochastic/fuzzy demand rate

Directory of Open Access Journals (Sweden)

K. A. Halim

2011-01-01

Full Text Available In this article, we consider a single-unit unreliable production system which produces a single item. During a production run, the production process may shift from the in-control state to the out-of-control state at any random time when it produces some defective items. The defective item production rate is assumed to be imprecise and is characterized by a trapezoidal fuzzy number. The production rate is proportional to the demand rate where the proportionality constant is taken to be a fuzzy number. Two production planning models are developed on the basis of fuzzy and stochastic demand patterns. The expected cost per unit time in the fuzzy sense is derived in each model and defuzzified by using the graded mean integration representation method. Numerical examples are provided to illustrate the optimal results of the proposed fuzzy models.

Hydrogen Production Cost Estimate Using Biomass Gasification: Independent Review

Energy Technology Data Exchange (ETDEWEB)

Ruth, M.

2011-10-01

This independent review is the conclusion arrived at from data collection, document reviews, interviews and deliberation from December 2010 through April 2011 and the technical potential of Hydrogen Production Cost Estimate Using Biomass Gasification. The Panel reviewed the current H2A case (Version 2.12, Case 01D) for hydrogen production via biomass gasification and identified four principal components of hydrogen levelized cost: CapEx; feedstock costs; project financing structure; efficiency/hydrogen yield. The panel reexamined the assumptions around these components and arrived at new estimates and approaches that better reflect the current technology and business environments.

The cost of electricity production from nuclear energy in the Netherlands

International Nuclear Information System (INIS)

1982-01-01

This report is an updated version of the report ''The costs of nuclear power in the Netherlands'' published in 1978. The calculations are based on light water reactors and, as required, more specifically on a boiling water reactor. In Chapter 2 the following components of the total costs are considered: i) investment and associated factors, ii) operation and further exploitation, iii) the fission-cycle. This last item includes the costs of the uranium ore, the enrichment, the manufacture of the fission elements, the use of the reactor and the reprocessing and storage of the waste products. The starting points for all these costs, the factors which affect them and the variations and/or uncertainties associated with them are given. Based on this argumentation, Chapter 3 presents the results of the calculations in Dutch cents per kWh for a ficticious nuclear power plant that commenced operation on 1st January 1982. Two reactor models are used operating at 930 and 600 MWe respectively. (C.F.)

A production inventory model with deteriorating items and shortages

Directory of Open Access Journals (Sweden)

Samanta G.P.

2004-01-01

Full Text Available A continuous production control inventory model for deteriorating items with shortages is developed. A number of structural properties of the inventory system are studied analytically. The formulae for the optimal average system cost, stock level, backlog level and production cycle time are derived when the deterioration rate is very small. Numerical examples are taken to illustrate the procedure of finding the optimal total inventory cost, stock level, backlog level and production cycle time. Sensitivity analysis is carried out to demonstrate the effects of changing parameter values on the optimal solution of the system.

APPLICABILITY OF ACTIVITY BASED COSTING IN NEW PRODUCT DEVELOPMENT PROCESSES

Directory of Open Access Journals (Sweden)

Ewa Wanda MARUSZEWSKA

2015-01-01

Full Text Available The purpose of the article is to emphasis that activity based costing is a proper tool for engineers to enhance their deci-sion-making process while developing new product. The theoretical analysis shows that variety of factors shall be en-compassed into new product decision-making process and therefore engineers and management should pay great attention to proper cost allocation. The paper suggests the usage of Activity Based Costing methodology for new product development decision-making process. Author states that application ABC in the process of rational decision-making referring to new product development enables managers and engineers to prioritize possible solutions, and reallocate resources used in production process in order to meet wider organizational goals. It would also contribute in coopera-tion of managers and engineers for the sake of organizational goal.

Process, cost modeling and simulations for integrated project development of biomass for fuel and protein

International Nuclear Information System (INIS)

Pannir Selvam, P.V.; Wolff, D.M.B.; Souza Melo, H.N.

1998-01-01

The construction of the models for biomass project development are described. These models, first constructed using QPRO electronic spread sheet for Windows, are now being developed with the aid of visual and object oriented program as tools using DELPHI V.1 for windows and process simulator SUPERPRO, V.2.7 Intelligent Inc. These models render the process development problems with economic objectives to be solved very rapidly. The preliminary analysis of cost and investments of biomass utilisation projects which are included for this study are: steam, ammonia, carbon dioxide and alkali pretreatment process, methane gas production using anaerobic digestion process, aerobic composting, ethanol fermentation and distillation, effluent treatments using high rate algae production as well as cogeneration of energy for drying. The main project under developments are the biomass valuation projects with the elephant (Napier) grass, sugar cane bagasse and microalgae, using models for mass balance, equipment and production cost. The sensibility analyses are carried out to account for stochastic variation of the process yield, production volume, price variations, using Monte Carlo method. These models allow the identification of economical and scale up problems of the technology. The results obtained with few preliminary project development with few case studies are reported for integrated project development for fuel and protein using process and cost simulation models. (author)

Parametric Cost Modeling of Space Missions Using the Develop New Projects (DMP) Implementation Process

Science.gov (United States)

Rosenberg, Leigh; Hihn, Jairus; Roust, Kevin; Warfield, Keith

2000-01-01

This paper presents an overview of a parametric cost model that has been built at JPL to estimate costs of future, deep space, robotic science missions. Due to the recent dramatic changes in JPL business practices brought about by an internal reengineering effort known as develop new products (DNP), high-level historic cost data is no longer considered analogous to future missions. Therefore, the historic data is of little value in forecasting costs for projects developed using the DNP process. This has lead to the development of an approach for obtaining expert opinion and also for combining actual data with expert opinion to provide a cost database for future missions. In addition, the DNP cost model has a maximum of objective cost drivers which reduces the likelihood of model input error. Version 2 is now under development which expands the model capabilities, links it more tightly with key design technical parameters, and is grounded in more rigorous statistical techniques. The challenges faced in building this model will be discussed, as well as it's background, development approach, status, validation, and future plans.

The impact of applying product-modelling techniques in configurator projects

DEFF Research Database (Denmark)

Hvam, Lars; Kristjansdottir, Katrin; Shafiee, Sara

2018-01-01

This paper aims to increase understanding of the impact of using product-modelling techniques to structure and formalise knowledge in configurator projects. Companies that provide customised products increasingly apply configurators in support of sales and design activities, reaping benefits...... that include shorter lead times, improved quality of specifications and products, and lower overall product costs. The design and implementation of configurators are a challenging task that calls for scientifically based modelling techniques to support the formal representation of configurator knowledge. Even...... the phenomenon model and information model are considered visually, (2) non-UML-based modelling techniques, in which only the phenomenon model is considered and (3) non-formal modelling techniques. This study analyses the impact to companies from increased availability of product knowledge and improved control...

COST OF QUALITY MODELS AND THEIR IMPLEMENTATION IN MANUFACTURING FIRMS

Directory of Open Access Journals (Sweden)

N.M. Vaxevanidis

2009-03-01

Full Text Available In order to improve quality, an organization must take into account the costs associated with achieving quality since the objective of continuous improvement programs is not only to meet customer requirements, but also to do it at the lowest, possible, cost. This can only obtained by reducing the costs needed to achieve quality, and the reduction of these costs is only possible if they are identified and measured. Therefore, measuring and reporting the cost of quality (CoQ should be considered an important issue for achieving quality excellence. To collect quality costs an organization needs to adopt a framework to classify costs; however, there is no general agreement on a single broad definition of quality costs. CoQ is usually understood as the sum of conformance plus non-conformance costs, where cost of conformance is the price paid for prevention of poor quality (for example, inspection and quality appraisal and cost of non-conformance is the cost of poor quality caused by product and service failure (for example, rework and returns. The objective of this paper is to give a survey of research articles on the topic of CoQ; it opens with a literature review focused on existing CoQ models; then, it briefly presents the most common CoQ parameters and the metrics (indices used for monitoring CoQ. Finally, the use of CoQ models in practice, i.e., the implementation of a quality costing system and cost of quality reporting in companies is discussed, with emphasis in cases concerning manufacturing firms.

Effects of internalising external production costs in a North European power market

International Nuclear Information System (INIS)

Munksgaard, J.; Ramskov, J.

2002-01-01

The aim of integrating national power markets is to improve the overall efficiency thereby making a potential for reducing electricity prices. However, efficiency is not necessarily improved if external environmental protection costs are neglected. In this paper, we analyse the effects of regulating an integrated power market by using environmental producer taxes based on external production costs. The analysis is based on an empirical equilibrium model for the North European power market. The results show that internalising costs will increase electricity producer prices by 40-50% in the period from 1995 to 2020. Further, demand for electricity will be reduced by 10%. We conclude, however, that in order to achieve the national Kyoto targets of reducing CO 2 emissions, further regulation is needed, such as national CO 2 taxes or cost efficient mechanisms like tradeable permits and joint implementation. (author)

Cost reduction in the production process using the ABC and Lean tools: Case Study in the refrigeration components industry

Directory of Open Access Journals (Sweden)

Levi da Silva Guimarães

2015-03-01

Full Text Available This paper focuses on production management with respect to operating costs that relate directly to the value of the product. For this study, three methods were used, ABC - Activity Based Costing, which provides accurate information about the knowledge of the real costs, VSM - Value Stream Mapping and Lean Manufacturing. The method adopted for this research was the case study. The study was conducted at a refrigeration components company in the Industrial Center of Manaus. The analyses and observations initially went through the process of mapping the value stream, measuring the current state of activities (cycle time, setup, etc.. After analysis it was possible to map the cost for each activity and finally calculate the cost of the product before and after the improvements resulting from the lean methodology. The results obtained in this study showed a 20% reduction in product costs resulting from operational improvements. The activity-based cost led to a discovery of the real costs of waste. The steps for this study include process mapping through the value stream, measuring the current state of activities (cycle time, setup, etc., establishing the cost driver for each activity, and finally calculating the cost of the product before and after the application of lean improvements. The paper was conducted through literature and descriptive review, and used a case study method. It describes the model that has been tested in a production line for a refrigeration components company from the Manaus Industrial Center, achieving a 20% reduction in product cost.

The costs of the different pathways of electricity production and saving

International Nuclear Information System (INIS)

Dessus, B.

2012-01-01

The author discusses the content and methodology of a report published by the French Court of Audit on the assessment of the costs of the nuclear sector. He briefly recalls the principle adopted by the Court, i.e. the method of the economic current cost which calculates a global MWh cost on the whole operation duration of the selected production tool. The author discusses the application of this method to different electricity production and consumption sectors: ground-based wind energy, the Flamanville EPR, use of low-energy bulbs, air-air heat pumps, a refrigerator. He compares and discusses the results obtained for different electricity production sectors (EPR, ground-based wind energy, and gas combined cycle technology) and their sensitivity to adopted hypotheses. He comments the evolution of the investment cost of nuclear reactors in France, the economic current costs of offshore wind energy and small photovoltaic production. He finally discusses the economic current costs of the different ways of energy saving and their sensitivity to the adopted hypotheses

Bayesian models for cost-effectiveness analysis in the presence of structural zero costs.

Science.gov (United States)

Baio, Gianluca

2014-05-20

Bayesian modelling for cost-effectiveness data has received much attention in both the health economics and the statistical literature, in recent years. Cost-effectiveness data are characterised by a relatively complex structure of relationships linking a suitable measure of clinical benefit (e.g. quality-adjusted life years) and the associated costs. Simplifying assumptions, such as (bivariate) normality of the underlying distributions, are usually not granted, particularly for the cost variable, which is characterised by markedly skewed distributions. In addition, individual-level data sets are often characterised by the presence of structural zeros in the cost variable. Hurdle models can be used to account for the presence of excess zeros in a distribution and have been applied in the context of cost data. We extend their application to cost-effectiveness data, defining a full Bayesian specification, which consists of a model for the individual probability of null costs, a marginal model for the costs and a conditional model for the measure of effectiveness (given the observed costs). We presented the model using a working example to describe its main features. © 2013 The Authors. Statistics in Medicine published by John Wiley & Sons, Ltd.

Multi-item economic production quantity model for imperfect items with multiple production setups and rework under the effect of preservation technology and learning environment

Directory of Open Access Journals (Sweden)

Preeti Jawla

2016-09-01

Full Text Available This study aims to investigate the multi-item inventory model in a production/rework system with multiple production setups. Rework can be depicted as the transformation of production rejects, failed, or non-conforming items into re-usable products of the same or lower quality during or after inspection. Rework is very valuable and profitable, especially if materials are limited in availability and also pricey. Moreover, rework can be a good contribution to a ‘green image environment’. In this paper, we establish a multi-item inventory model to determine the optimal inventory replenishment policy for the economic production quantity (EPQ model for imperfect, deteriorating items with multiple productions and rework under inflation and learning environment. In inventory modelling, Inflation plays a very important role. In one cycle, production system produces items in n production setups and one rework setup, i.e. system follows (n, 1 policy. To reduce the deterioration of products preservation technology investment is also considered in this model. Holding cost is taken as time dependent. We develop expressions for the average profit per time unit, including procurement of input materials, costs for production, rework, deterioration cost and storage of serviceable and reworkable lots. Using those expressions, the proposed model is demonstrated numerically and the sensitivity analysis is also performed to study the behaviour of the model.

A Cost Framework for the Economic Feasibility of Wide-Scale Biochar Production

Science.gov (United States)

Pourhashem, G.; Masiello, C. A.; Medlock, K. B., III

2017-12-01

Biochar is a product of biomass pyrolysis, one of the main thermal pathways of producing biofuels. In addition to sequestering carbon, biochar's soil application helps sustainable agriculture by enhancing soil's structure and ecological functions, as well as lowering NO release from fertilized soils. However, wide-scale biochar land amendment has been limited in part due to its high cost. To examine biochar's cost dynamics, we develop a comprehensive framework for a representative biochar production facility and identify system inputs that are the key drivers of cost and profitability. We assess the production cost of fast and slow pyrolysis-biochar considering a range of parameters e.g. biomass type, process design and scale. We analyzed techno-economic cost data for producing biochar using simulated data from academic literature, and active producer data collected under confidentiality agreement. The combined approach was used to enhance the depth of the dataset and allowed for a reasonable check on published simulated data. Fast and slow pyrolysis have different biofuel and biochar yields and profit. A slow pyrolysis facility recovers its expenses mainly through biochar sale while a fast pyrolysis facility generates its primary revenue through biofuel sale, largely considering biochar a byproduct. Unlike fast pyrolysis that has received most attention in techno-economic studies, publicly available techno-economic data of slow pyrolysis is sparse. This limits the ability to run a thorough cost-benefit analysis to inform the feasibility of wider adoption of biochar for capturing its carbon sequestration and broader environmental benefits. Our model allows for consideration of various market-based policy instruments and can be used as an analytical decision making tool for investors and policy makers to estimate the cost and optimum facility size. This dynamic framework can also be adapted to account for the availability of new data as technology improves and

Balancing development costs and sales to optimize the development time of product line additions

NARCIS (Netherlands)

Langerak, F.; Griffin, A.; Hultink, E.J.

2010-01-01

Development teams often use mental models to simplify development time decision making because a comprehensive empirical assessment of the trade-offs across the metrics of development time, development costs, proficiency in market-entry timing, and new product sales is simply not feasible.

The Benefish consortium 24 month report WP6: productivity modelling of OWI's and welfare intervention measures

OpenAIRE

Schneider, O.; Schram, E.; Noble, C.

2009-01-01

In order to accurately model all costs and benefits associated with welfare interventions for farmed fish it is necessary to establish how any welfare actions affect productivity. Productivity modelling within Benefish has been conducted in WP6. WP6 aimed to model relationships between welfare interventions, changes in OWI’s and measures of productivity. It did so focusing only on the effects which were biological in nature: economic costs and benefits attributed to changes in productivity ar...

The Launch Systems Operations Cost Model

Science.gov (United States)

Prince, Frank A.; Hamaker, Joseph W. (Technical Monitor)

2001-01-01

One of NASA's primary missions is to reduce the cost of access to space while simultaneously increasing safety. A key component, and one of the least understood, is the recurring operations and support cost for reusable launch systems. In order to predict these costs, NASA, under the leadership of the Independent Program Assessment Office (IPAO), has commissioned the development of a Launch Systems Operations Cost Model (LSOCM). LSOCM is a tool to predict the operations & support (O&S) cost of new and modified reusable (and partially reusable) launch systems. The requirements are to predict the non-recurring cost for the ground infrastructure and the recurring cost of maintaining that infrastructure, performing vehicle logistics, and performing the O&S actions to return the vehicle to flight. In addition, the model must estimate the time required to cycle the vehicle through all of the ground processing activities. The current version of LSOCM is an amalgamation of existing tools, leveraging our understanding of shuttle operations cost with a means of predicting how the maintenance burden will change as the vehicle becomes more aircraft like. The use of the Conceptual Operations Manpower Estimating Tool/Operations Cost Model (COMET/OCM) provides a solid point of departure based on shuttle and expendable launch vehicle (ELV) experience. The incorporation of the Reliability and Maintainability Analysis Tool (RMAT) as expressed by a set of response surface model equations gives a method for estimating how changing launch system characteristics affects cost and cycle time as compared to today's shuttle system. Plans are being made to improve the model. The development team will be spending the next few months devising a structured methodology that will enable verified and validated algorithms to give accurate cost estimates. To assist in this endeavor the LSOCM team is part of an Agency wide effort to combine resources with other cost and operations professionals to

User Delay Cost Model and Facilities Maintenance Cost Model for a Terminal Control Area : Volume 3. User's Manual and Program Documentation for the Facilities Maintenance Cost Model

Science.gov (United States)

1978-05-01

The Facilities Maintenance Cost Model (FMCM) is an analytic model designed to calculate expected annual labor costs of maintenance within a given FAA maintenance sector. The model is programmed in FORTRAN IV and has been demonstrated on the CDC Krono...

Strategies for cost-effective and enhanced production of bacterial cellulose.

Science.gov (United States)

Islam, Mazhar Ul; Ullah, Muhammad Wajid; Khan, Shaukat; Shah, Nasrullah; Park, Joong Kon

2017-09-01

Bacterial cellulose (BC) has received substantial attention because of its high purity, mechanical strength, crystallinity, liquid-absorbing capabilities, biocompatibility, and biodegradability etc. These properties allow BC to be used in various fields, especially in industries producing medical, electronic, and food products etc. A major discrepancy associated with BC is its high production cost, usually much higher than the plant cellulose. To address this limitations, researchers have developed several strategies for enhanced production of BC including the designing of advanced reactors and utilization of various carbon sources. Another promising approach is the production of BC from waste materials such as food, industrial, agricultural, and brewery wastes etc. which not only reduces the overall BC production cost but is also environment-friendly. Besides, exploration of novel and efficient BC producing microbial strains provides impressive boost to the BC production processes. To this end, development of genetically engineered microbial strains has proven useful for enhanced BC production. In this review, we have summarized major efforts to enhance BC production in order to make it a cost-effective biopolymer. This review can be of interest to researchers investigating strategies for enhanced BC production, as well as companies exploring pilot projects to scale up BC production for industrial applications. Copyright © 2017 Elsevier B.V. All rights reserved.

Resource-recovery facilities: Production and cost functions, and debt-financing issues

International Nuclear Information System (INIS)

Simonsen, W.S.

1991-01-01

Some of the fiscal questions relating to resource-recovery, or trash-burning, facilities are addressed. Production and cost functions for resource-recovery facilities are estimated using regression analysis. Whether or not there are returns to scale are addressed using the production and cost-function framework. Production functions are also estimated using data envelopment analysis (DEA), and results are compared to the regression results. DEA is a linear-program-based technique that can provide information about the production process. The data used to estimate the production and cost functions were collected from the Resource Recovery Yearbook. Once the decision is made to construct a resource-recovery facility, it needs to be financed. The high cost of these facilities usually prohibits financing construction out of regular operating revenues. Therefore, the issues a government faces when debt is used to finance a resource-recovery facility are analyzed. The most important public policy finding is that increasing economies of scale do not seem to be present for resource-recovery facilities

The Shuttle Cost and Price model

Science.gov (United States)

Leary, Katherine; Stone, Barbara

1983-01-01

The Shuttle Cost and Price (SCP) model was developed as a tool to assist in evaluating major aspects of Shuttle operations that have direct and indirect economic consequences. It incorporates the major aspects of NASA Pricing Policy and corresponds to the NASA definition of STS operating costs. An overview of the SCP model is presented and the cost model portion of SCP is described in detail. Selected recent applications of the SCP model to NASA Pricing Policy issues are presented.

Animated-simulation modeling facilitates clinical-process costing.

Science.gov (United States)

Zelman, W N; Glick, N D; Blackmore, C C

2001-09-01

Traditionally, the finance department has assumed responsibility for assessing process costs in healthcare organizations. To enhance process-improvement efforts, however, many healthcare providers need to include clinical staff in process cost analysis. Although clinical staff often use electronic spreadsheets to model the cost of specific processes, PC-based animated-simulation tools offer two major advantages over spreadsheets: they allow clinicians to interact more easily with the costing model so that it more closely represents the process being modeled, and they represent cost output as a cost range rather than as a single cost estimate, thereby providing more useful information for decision making.

Computerized operating cost model for industrial steam generation

Energy Technology Data Exchange (ETDEWEB)

Powers, T.D.

1983-02-01

Pending EPA regulations, establishing revised emission levels for industrial boilers are perceived to have an effect on the relative costs of steam production technologies. To aid in the comparison of competitive boiler technologies, the Steam Cost Code was developed which provides levelized steam costs reflecting the effects of a number of key steam cost parameters. The Steam Cost Code is a user interactive FORTRAN program designed to operate on a VAX computer system. The program requires the user to input a number of variables describing the design characteristics, capital costs, and operating conditions for a specific boiler system. Part of the input to the Steam Cost Code is the capital cost of the steam production system. The capital cost is obtained from a program called INDCEPT, developed by Oak Ridge National Laboratory under Department of Energy, Morgantown Energy Technology Center sponsorship.

COSTING OF QUALITY IN BUSINESS BASE UNIT SEVERAL PRODUCTIONS, CIENFUEGOS

Directory of Open Access Journals (Sweden)

Gómez Alfonso, Elizabeth

2013-01-01

Full Text Available The calculation of quality costs as a component of the System of Quality Management, is a must for Cuban business managers, to provide a technique identified as an advanced instrument of management, which will lead to improved competitiveness and serve as an informative source. Identify and calculate the costs of quality, as well as propose measured plans, to promote a decrease in operating expenses, which can be used as a tool to improve processes. The Business Unit of Several Base Productions of Cienfuegos presents the fault to give way to Business Improvement and certification of its Quality Management System, according to the norm ISO 9001:2008 and the decree law 281, so that the objective research was to estimate the costs of quality processes in the company. To achieve this level were used empirical methods and techniques such as direct observation, document review and work in groups, which allowed to calculate the costs of quality in all processes. The results obtained are applicable to companies that operate in the Cuban economy and according to the Cuban economic model implemented from the year 2011.

A modelling approach to estimate the European biofuel production: from crops to biofuels

Energy Technology Data Exchange (ETDEWEB)

Clodic, Melissa [Institute National de la Recherche Agronomique (IFP/INRA), Paris (France). Instituto Frances do Petroleo

2008-07-01

Today, in the context of energy competition and climate change, biofuels are promoted as a renewable resource to diversify the energy supply. However, biofuel development remains controversial. Here, we will present a way to make an environmental and economic cost and benefit analysis of European biofuels, from the crops until the marketed products, by using a linear programming optimization modelling approach. To make this European biofuel production model, named AGRAF, possible, we decided to use different independent linear programming optimization models which represent the separate parts of the process: European agricultural production, production of transforming industries and refinery production. To model the agricultural and the refining sections, we have chosen to improve existing and experimented models by adding a biofuel production part. For the transforming industry, we will create a new partial equilibrium model which will represent stake holders such as Sofiproteol, Stereos, etc. Data will then be exchanged between the models to coordinate all the biofuel production steps. Here, we will also focus on spatialization in order to meet certain of our requirements, such as the exchange flux analysis or the determination of transport costs, usually important in an industrial optimization model. (author)

Mathematical modeling of a multi-product EMQ model with an enhanced end items issuing policy and failures in rework.

Science.gov (United States)

Chiu, Yuan-Shyi Peter; Sung, Peng-Cheng; Chiu, Singa Wang; Chou, Chung-Li

2015-01-01

This study uses mathematical modeling to examine a multi-product economic manufacturing quantity (EMQ) model with an enhanced end items issuing policy and rework failures. We assume that a multi-product EMQ model randomly generates nonconforming items. All of the defective are reworked, but a certain portion fails and becomes scraps. When rework process ends and the entire lot of each product is quality assured, a cost reduction n + 1 end items issuing policy is used to transport finished items of each product. As a result, a closed-form optimal production cycle time is obtained. A numerical example demonstrates the practical usage of our result and confirms a significant savings in stock holding and overall production costs as compared to that of a prior work (Chiu et al. in J Sci Ind Res India, 72:435-440 2013) in the literature.

The contemporary art of cost management methods during product development

NARCIS (Netherlands)

Wouters, M.; Morales, S.; Epstein, M.J.; Lee, J.Y.

2014-01-01

Purpose To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design. Methodology/approach The structured literature search

Cost prediction following traumatic brain injury: model development and validation.

Science.gov (United States)

Spitz, Gershon; McKenzie, Dean; Attwood, David; Ponsford, Jennie L

2016-02-01

The ability to predict costs following a traumatic brain injury (TBI) would assist in planning treatment and support services by healthcare providers, insurers and other agencies. The objective of the current study was to develop predictive models of hospital, medical, paramedical, and long-term care (LTC) costs for the first 10 years following a TBI. The sample comprised 798 participants with TBI, the majority of whom were male and aged between 15 and 34 at time of injury. Costing information was obtained for hospital, medical, paramedical, and LTC costs up to 10 years postinjury. Demographic and injury-severity variables were collected at the time of admission to the rehabilitation hospital. Duration of PTA was the most important single predictor for each cost type. The final models predicted 44% of hospital costs, 26% of medical costs, 23% of paramedical costs, and 34% of LTC costs. Greater costs were incurred, depending on cost type, for individuals with longer PTA duration, obtaining a limb or chest injury, a lower GCS score, older age at injury, not being married or defacto prior to injury, living in metropolitan areas, and those reporting premorbid excessive or problem alcohol use. This study has provided a comprehensive analysis of factors predicting various types of costs following TBI, with the combination of injury-related and demographic variables predicting 23-44% of costs. PTA duration was the strongest predictor across all cost categories. These factors may be used for the planning and case management of individuals following TBI. Published by the BMJ Publishing Group Limited. For permission to use (where not already granted under a licence) please go to http://www.bmj.com/company/products-services/rights-and-licensing/

Aspect-Oriented Model-Driven Software Product Line Engineering

Science.gov (United States)

Groher, Iris; Voelter, Markus

Software product line engineering aims to reduce development time, effort, cost, and complexity by taking advantage of the commonality within a portfolio of similar products. The effectiveness of a software product line approach directly depends on how well feature variability within the portfolio is implemented and managed throughout the development lifecycle, from early analysis through maintenance and evolution. This article presents an approach that facilitates variability implementation, management, and tracing by integrating model-driven and aspect-oriented software development. Features are separated in models and composed of aspect-oriented composition techniques on model level. Model transformations support the transition from problem to solution space models. Aspect-oriented techniques enable the explicit expression and modularization of variability on model, template, and code level. The presented concepts are illustrated with a case study of a home automation system.

Cost of product functions using analysis of value

Directory of Open Access Journals (Sweden)

Luminita Parv

2016-09-01

Full Text Available The value of use is a specific notion but of a great generality that makes the product be regarded as a complex system that transforms itself in time, thus undergoing evolution. Therefore, the product is important not in itself, but for the sake of the requirements it satisfies and for the functions it provides. In the analysis of value there are connections of a technical nature that implicitly lead to connections of an economic nature. Thus, the method of the ”analysis of value” will actually examine the cost of product functions, the aim of the method being the balance of functions costs on the basis of their importance for the product. Identifying the functions represents one of the important stages of the analysis of value. The difficulty in fixing the functions derives from the fact that there are not any rules clear enough for this activity, but only principles

Modelling the costs of energy crops. A case study of US corn and Brazilian sugar cane

International Nuclear Information System (INIS)

Mejean, Aurelie; Hope, Chris

2010-01-01

High crude oil prices, uncertainties about the consequences of climate change and the eventual decline of conventional oil production raise the prospects of alternative fuels, such as biofuels. This paper describes a simple probabilistic model of the costs of energy crops, drawing on the user's degree of belief about a series of parameters as an input. This forward-looking analysis quantifies the effects of production constraints and experience on the costs of corn and sugar cane, which can then be converted to bioethanol. Land is a limited and heterogeneous resource: the crop cost model builds on the marginal land suitability, which is assumed to decrease as more land is taken into production, driving down the marginal crop yield. Also, the maximum achievable yield is increased over time by technological change, while the yield gap between the actual yield and the maximum yield decreases through improved management practices. The results show large uncertainties in the future costs of producing corn and sugar cane, with a 90% confidence interval of 2.9-7.2$/GJ in 2030 for marginal corn costs, and 1.5-2.5$/GJ in 2030 for marginal sugar cane costs. The influence of each parameter on these supply costs is examined. (author)

Increased accuracy of cost-estimation using product configuration systems

DEFF Research Database (Denmark)

Rasmussen, Jeppe Bredahl; Hvam, Lars; Mortensen, Niels Henrik

This article describes an approach for utilizing Product Configuration Systems (PCS) for quantifying project costs in project-based companies. It presents a case study demonstrating a method of quantifying costs in a way that makes it possible to configure cost- and time estimates. Piecework costs......, material costs and sub-supplier costs are used as principle cost elements and linked to structural and process elements to facilitate configuration. The cost data are used by the PCS to generate fast and accurate cost-estimates, quotations, time estimates and cost summaries. The described cost...... quantification principles have been used in a Scandinavian SME (Small and Medium-sized Enterprise) since the 90’s, but have since 2011 been adopted to be used in a configuration system. A longitudinal case study was conducted to compare cost and time-estimation accuracy before and after implementation. We...

Pengembangan Model Economic Production Quantity (EPQ dengan Sinkronisasi Demand Kontinu dan Diskrit Secara Simultan

Directory of Open Access Journals (Sweden)

Nurike Oktavia

2016-04-01

Full Text Available The most popular inventory model to determine production lot size is Economic Production Quantity (EPQ. It shows enterprise how to minimize total production cost by reducing inventory cost. But, three main parameters in EPQ which are demand, machine set up cost, and holding cost, are not suitable to solve issues nowadays. When an enterprise has two types of demand, continue and discrete demand, the basic EPQ would be no longer useful. Demand continues comes from a customer who wants their needs to be fulfilled every time per unit time, while the fulfillment of demand discrete is at a fixed interval of time. A literature review is done by writers to observe other formulation of EPQ model. As there is no other research can be found which adopt this topic, this study tries to develop EPQ model considering two types of demand simultaneously.

VARIANTS OF DETERMINING THE MANUFACTURING COST OF A PRODUCT IN A PRODUCTION UNIT IN THE LIGHT OF BALANCE SHEET LAW

Directory of Open Access Journals (Sweden)

Marzena STROJEK‐FILUS

2014-01-01

Full Text Available The category of the manufacturing cost of a product is one of the most important ones from the point of view of proper valuation of the assets of a production unit, costs of its operations as well as pricing decisions. This article presents the problem of determining the manufacturing cost of a product in terms of balance sheet law. It has been shown that in order to determine this value various methods and options are allowed by this law, by means of which different values of manufacturing cost of a product are obtained. The importance of a proper selection of an allocation key in setilement of indirect production costs has been highlighted as well as the results of using, in certain cases, approved simplifications in the balance sheet law when determining the manufacturing cost of products have been demonstrated. The problem presented in this article is crucial from the point of view of an organization and management of production as well as managerial decision‐making in a company in the area of design of products and processes.

Ground-Based Telescope Parametric Cost Model

Science.gov (United States)

Stahl, H. Philip; Rowell, Ginger Holmes

2004-01-01

A parametric cost model for ground-based telescopes is developed using multi-variable statistical analysis, The model includes both engineering and performance parameters. While diameter continues to be the dominant cost driver, other significant factors include primary mirror radius of curvature and diffraction limited wavelength. The model includes an explicit factor for primary mirror segmentation and/or duplication (i.e.. multi-telescope phased-array systems). Additionally, single variable models based on aperture diameter are derived. This analysis indicates that recent mirror technology advances have indeed reduced the historical telescope cost curve.

Cost and price estimate of Brayton and Stirling engines in selected production volumes

Science.gov (United States)

Fortgang, H. R.; Mayers, H. F.

1980-01-01

The methods used to determine the production costs and required selling price of Brayton and Stirling engines modified for use in solar power conversion units are presented. Each engine part, component and assembly was examined and evaluated to determine the costs of its material and the method of manufacture based on specific annual production volumes. Cost estimates are presented for both the Stirling and Brayton engines in annual production volumes of 1,000, 25,000, 100,000 and 400,000. At annual production volumes above 50,000 units, the costs of both engines are similar, although the Stirling engine costs are somewhat lower. It is concluded that modifications to both the Brayton and Stirling engine designs could reduce the estimated costs.

The cost of clinical mastitis in the first 30 days of lactation: An economic modeling tool.

Science.gov (United States)

Rollin, E; Dhuyvetter, K C; Overton, M W

2015-12-01

Clinical mastitis results in considerable economic losses for dairy producers and is most commonly diagnosed in early lactation. The objective of this research was to estimate the economic impact of clinical mastitis occurring during the first 30 days of lactation for a representative US dairy. A deterministic partial budget model was created to estimate direct and indirect costs per case of clinical mastitis occurring during the first 30 days of lactation. Model inputs were selected from the available literature, or when none were available, from herd data. The average case of clinical mastitis resulted in a total economic cost of $444, including $128 in direct costs and $316 in indirect costs. Direct costs included diagnostics ($10), therapeutics ($36), non-saleable milk ($25), veterinary service ($4), labor ($21), and death loss ($32). Indirect costs included future milk production loss ($125), premature culling and replacement loss ($182), and future reproductive loss ($9). Accurate decision making regarding mastitis control relies on understanding the economic impacts of clinical mastitis, especially the longer term indirect costs that represent 71% of the total cost per case of mastitis. Future milk production loss represents 28% of total cost, and future culling and replacement loss represents 41% of the total cost of a case of clinical mastitis. In contrast to older estimates, these values represent the current dairy economic climate, including milk price ($0.461/kg), feed price ($0.279/kg DM (dry matter)), and replacement costs ($2,094/head), along with the latest published estimates on the production and culling effects of clinical mastitis. This economic model is designed to be customized for specific dairy producers and their herd characteristics to better aid them in developing mastitis control strategies. Copyright © 2015 The Authors. Published by Elsevier B.V. All rights reserved.

Expected value analysis for integrated supplier selection and inventory control of multi-product inventory system with fuzzy cost

Science.gov (United States)

Sutrisno, Widowati, Tjahjana, R. Heru

2017-12-01

The future cost in many industrial problem is obviously uncertain. Then a mathematical analysis for a problem with uncertain cost is needed. In this article, we deals with the fuzzy expected value analysis to solve an integrated supplier selection and supplier selection problem with uncertain cost where the costs uncertainty is approached by a fuzzy variable. We formulate the mathematical model of the problems fuzzy expected value based quadratic optimization with total cost objective function and solve it by using expected value based fuzzy programming. From the numerical examples result performed by the authors, the supplier selection problem was solved i.e. the optimal supplier was selected for each time period where the optimal product volume of all product that should be purchased from each supplier for each time period was determined and the product stock level was controlled as decided by the authors i.e. it was followed the given reference level.

Reduced Multivariate Polynomial Model for Manufacturing Costs Estimation of Piping Elements

Directory of Open Access Journals (Sweden)

Nibaldo Rodriguez

2013-01-01

Full Text Available This paper discusses the development and evaluation of an estimation model of manufacturing costs of piping elements through the application of a Reduced Multivariate Polynomial (RMP. The model allows obtaining accurate estimations, even when enough and adequate information is not available. This situation typically occurs in the early stages of the design process of industrial products. The experimental evaluations show that the approach is capable, with a low complexity, of reducing uncertainties and to predict costs with significant precision. Comparisons with a neural network showed also that the RMP performs better considering a set of classical performance measures with the corresponding lower complexity and higher accuracy.

Electric plant cost and power production expenses 1991