Cost efficiency of NSW rail passenger services 1951/52-1991/92 : a case study in corporate strategic modelling

During the 1990s, governments, managements and unions have been focused upon improving the cost efficiency of firms. This focus has been strongest for firms in the public sector where improved outcomes can be expected to significantly improve the Gross Domestic Products of whole economies. This case study looks at the cost efficiency of NSW rail passenger services over a 41 year period to 1991/92, long suspected (but hitherto only tentatively demonstrated) as a paradigm of cost inefficiency. The case study focuses upon the use of the total factor productivity (TFP) index, as a datum point for measuring change in productivity in four markets: suburban, internrban, country and interstate passenger services since 1951/52. From this datum, changes over the years in management, technology and other external factors can be identified and assessed. The thesis identifies management quality (the organising element in the firm) as the preeminent factor in determining productivity change, and the role that new technology plays in its impact on failures in management. We establish the linkages between management and innovation, with TFP, pricing efficiency and economic resource use efficiency, to present a rich paradigm for assessing the economic performance of any business firm. Borrowing from systems theory and other management practices such as total quality management, we disaggregated the case firm into its component systems, sub-systems and processes, for separate study in relation to impact on TFP. The database for 41 years of rail behaviour is the richest ever compiled for any railway in Australia, and with enhanced modelling, enables a systematic treatment of the performance through time of State Rail's passenger services

Using system dynamics modelling to assess the economic efficiency of innovations in the public sector - a systematic review

© 2022 Jadeja et al. This is an open access article distributed under the terms of the Creative Commons Attribution License.Background: Decision-makers for public policy are increasingly utilising systems approaches such as system dynamics (SD) modelling, which test alternative interventions or policies for their potential impact while accounting for complexity. These approaches, however, have not consistently included an economic efficiency analysis dimension. This systematic review aims to examine how, and in what ways, system dynamics modelling approaches incorporate economic efficiency analyses to inform decision-making on innovations (improvements in products, services, or processes) in the public sector, with a particular interest in health. Methods and findings: Relevant studies (n = 29) were identified through a systematic search and screening of four electronic databases and backward citation search, and analysed for key characteristics and themes related to the analytical methods applied. Economic efficiency analysis approaches within SD broadly fell into two categories: as embedded sub-models or as cost calculations based on the outputs of the SD model. Embdedded sub-models within a dynamic SD framework can reveal a clear allocation of costs and benefits to periods of time, whereas cost calculations based on the SD model outputs can be useful for high-level resource allocation decisions. Conclusions: This systematic review reveals that SD modelling is not currently used to its full potential to evaluate the technical or allocative efficiency of public sector innovations, particularly in health. The limited reporting on the experience or methodological challenges of applying allocated efficiency analyses with SD, particularly with dynamic embedded models, hampers common learning lessons to draw from and build on. Further application and comprehensive reporting of this approach would be welcome to develop the methodology further.Peer reviewedFinal Published versio

Using system dynamics modelling to assess the economic efficiency of innovations in the public sector - a systematic review.

BackgroundDecision-makers for public policy are increasingly utilising systems approaches such as system dynamics (SD) modelling, which test alternative interventions or policies for their potential impact while accounting for complexity. These approaches, however, have not consistently included an economic efficiency analysis dimension. This systematic review aims to examine how, and in what ways, system dynamics modelling approaches incorporate economic efficiency analyses to inform decision-making on innovations (improvements in products, services, or processes) in the public sector, with a particular interest in health.Methods and findingsRelevant studies (n = 29) were identified through a systematic search and screening of four electronic databases and backward citation search, and analysed for key characteristics and themes related to the analytical methods applied. Economic efficiency analysis approaches within SD broadly fell into two categories: as embedded sub-models or as cost calculations based on the outputs of the SD model. Embdedded sub-models within a dynamic SD framework can reveal a clear allocation of costs and benefits to periods of time, whereas cost calculations based on the SD model outputs can be useful for high-level resource allocation decisions.ConclusionsThis systematic review reveals that SD modelling is not currently used to its full potential to evaluate the technical or allocative efficiency of public sector innovations, particularly in health. The limited reporting on the experience or methodological challenges of applying allocated efficiency analyses with SD, particularly with dynamic embedded models, hampers common learning lessons to draw from and build on. Further application and comprehensive reporting of this approach would be welcome to develop the methodology further

Using system dynamics modelling to assess the economic efficiency of innovations in the public sector - a systematic review

Background Decision-makers for public policy are increasingly utilising systems approaches such as system dynamics (SD) modelling, which test alternative interventions or policies for their potential impact while accounting for complexity. These approaches, however, have not consistently included an economic efficiency analysis dimension. This systematic review aims to examine how, and in what ways, system dynamics modelling approaches incorporate economic efficiency analyses to inform decision-making on innovations (improvements in products, services, or processes) in the public sector, with a particular interest in health. Methods and findings Relevant studies (n = 29) were identified through a systematic search and screening of four electronic databases and backward citation search, and analysed for key characteristics and themes related to the analytical methods applied. Economic efficiency analysis approaches within SD broadly fell into two categories: as embedded sub-models or as cost calculations based on the outputs of the SD model. Embdedded sub-models within a dynamic SD framework can reveal a clear allocation of costs and benefits to periods of time, whereas cost calculations based on the SD model outputs can be useful for high-level resource allocation decisions. Conclusions This systematic review reveals that SD modelling is not currently used to its full potential to evaluate the technical or allocative efficiency of public sector innovations, particularly in health. The limited reporting on the experience or methodological challenges of applying allocated efficiency analyses with SD, particularly with dynamic embedded models, hampers common learning lessons to draw from and build on. Further application and comprehensive reporting of this approach would be welcome to develop the methodology further

Towards Sustainable Production Processes Reengineering: Case Study at INCOM Egypt

INCOM Egypt has undergone automation in some processes where critical aspects of its operations are transformed and automated. This paper presents an overview of INCOM Egypt processes using Ould Riva and analyses the process of ‘handling a product’. It aims to demonstrate effective automation of the production of wires and cables process accompanied to Industry 4.0 while considering environmental and economic sustainability goals that were inhibited by COVID-19 restrictions. Ould’s Riva method is used to analyse the production process of wires and cables to propose improvements for automating the process. Business process modelling is utilised to study the processes for clearer understating. The flow of information within the process is also analysed to integrate the production process with other processes and supply chains, which helps to identify which production activities can be automated and mainstreamed into the information flow to achieve environmental and economic sustainability. The context of INCOM Egypt, as a case study, is presented along with the Riva model of its operations. The paper identifies the before, i.e., As-Is process, and after, i.e., To-Be Process, automation of the ‘handle a product’ process using the Role Activity Diagram (RAD). The process involved redesigning and improving different activities to increase resource-use efficiency to participate in achieving the goals of sustainability. The focus of this paper is to investigate the negative impact of COVID-19 on sustainability and to examine the accomplishments of process automation of wire production towards environmental and economic sustainability. The results of the research reveal a relationship between business process modelling and sustainability. Moreover, automation of processes (Industry 4.0) is found to reduce the negative effect of COVID-19 on production. A triangulation between process modelling, process automation (Industry 4.0), and sustainability was determined. Each one is reinforcing and impacting one another. The RAD model demonstrates that automation of the activities in the process reduces waste, time, cost, and redundant processes as factors of sustainability, which may also help to lessen the unfavorable effects of the pandemic. The results proved generalisation on other organisations in the same line of business

Determining Utility System Value of Demand Flexibility From Grid-interactive Efficient Buildings

This report focuses on ways current methods and practices that establish the value to electric utility systems of distributed energy resource (DER) investments can be enhanced to determine the value of demand flexibility in grid-interactive efficient buildings that can provide grid services. The report introduces key valuation concepts that are applicable to demand flexibility that these buildings can provide and links to other documents that describe these concepts and their implementation in more detail.The scope of this report is limited to the valuation of economic benefits to the utility system. These are the foundational values on which other benefits (and costs) can be built. Establishing the economic value to the grid of demand flexibility provides the information needed to design programs, market rules, and rates that align the economic interest of utility customers with building owners and occupants. By nature, DERs directly impact customers and provide societal benefits external to the utility system. Jurisdictions can use utility system benefits and costs as the foundation of their economic analysis but align their primary cost-effectiveness metric with all applicable policy objectives, which may include customer and societal (non-utility system) impacts.This report suggests enhancements to current methods and practices that state and local policymakers, public utility commissions, state energy offices, utilities, state utility consumer representatives, and other stakeholders might support. These enhancements can improve the consistency and robustness of economic valuation of demand flexibility for grid services. The report concludes with a discussion of considerations for prioritizing implementation of these improvements

The potential of additive manufacturing in the smart factory industrial 4.0: A review

Additive manufacturing (AM) or three-dimensional (3D) printing has introduced a novel production method in design, manufacturing, and distribution to end-users. This technology has provided great freedom in design for creating complex components, highly customizable products, and efficient waste minimization. The last industrial revolution, namely industry 4.0, employs the integration of smart manufacturing systems and developed information technologies. Accordingly, AM plays a principal role in industry 4.0 thanks to numerous benefits, such as time and material saving, rapid prototyping, high efficiency, and decentralized production methods. This review paper is to organize a comprehensive study on AM technology and present the latest achievements and industrial applications. Besides that, this paper investigates the sustainability dimensions of the AM process and the added values in economic, social, and environment sections. Finally, the paper concludes by pointing out the future trend of AM in technology, applications, and materials aspects that have the potential to come up with new ideas for the future of AM explorations

Which economic model for a water-efficient Europe? Report of a CEPS Task Force. CEPS Task Force Report, 27 November 2012

This CEPS Task Force Report focuses on how to improve water efficiency in Europe, notably in public supply, households, agriculture, energy and manufacturing as well as across sectors. It presents a number of recommendations on how to make better use of economic policy instruments to sustainably manage the EU’s water resources. Published in the run-up to the European Commission’s “Blueprint to Safeguard Europe’s Waters”, the report contributes to the policy deliberations in two ways. First, by assessing the viability of economic policy instruments, it addresses a major shortcoming that has so far prevented the 2000 EU Water Framework Directive (WFD) from becoming fully effective in practice: the lack of appropriate, coherent and effective instruments in (some) member states. Second, as the Task Force report is the result of an interactive process involving a variety of stakeholders, it is able to point to the key differences in interpreting and applying WFD principles that have led to a lack of policy coherence across the EU and to offer some pragmatic advice on moving forward

Global Human Resource Metrics

[Excerpt] What is the logic underlying global human resources (HR) measurement in your organization? In your organization, do you measure the contribution of global HR programs to organizational performance? Do you know what is the most competitive employee mix, e.g., proportion of expatriates vs. local employees, for your business units? (How) do you measure the cost and value of the different types of international work performed by your employees? In the globalized economy, organizations increasingly derive value from human resources, or “talent” as we shall also use the term here (Boudreau, Ramstad & Dowling, in press). The strategic importance of the workforce makes decisions about talent critical to organizational success. Informed decisions about talent require a strategic approach to measurement. However, measures alone are not sufficient, for measures without logic can create information overload, and decision quality rests in substantial part on the quality of measurements. An important element of enhanced global competitiveness is a measurement model for talent that articulates the connections between people and success, as well as the context and boundary conditions that affect those connections. This chapter will propose a framework within which existing and potential global HR measures can be organized and understood. The framework reflects the premise that measures exist to support and enhance decisions, and that strategic decisions require a logical connection between decisions about resources, such as talent, and the key organizational outcomes affected by those decisions. Such a framework may provide a useful mental model for both designers and users of HR measures