Eco Global Evaluation: Cross Benefits of Economic and Ecological Evaluation

This paper highlights the complementarities of cost and environmental evaluation in a sustainable approach. Starting with the needs and limits for whole product lifecycle evaluation, this paper begins with the modeling, data capture and performance indicator aspects. In a second step, the information issue, regarding the whole lifecycle of the product is addressed. In order to go further than the economical evaluations/assessment, the value concept (for a product or a service) is discussed. Value could combine functional requirements, cost objectives and environmental impact. Finally, knowledge issues which address the complexity of integrating multi-disciplinary expertise to the whole lifecycle of a product are discussing.EcoSD NetworkEcoSD networ

A consideration of modelling techniques that can be used to evaluate manufacturing strategies

Practising engineers frequently seek to understand what the effects of various manufacturing strategies will be on the performance of their production facilities. In this situation a computer model can help to provide insight and form predictions about future manufacturing system performance. Various types of modelling methods exist and each provide models that have distinct characteristics. This paper presents a review of popular modelling techniques and, based on the results of a structured experimental study, summarises their capabilities to support the evaluation of manufacturing strategies

Aggregate Cost Model for Scalability in Manufacturing Systems

Manufacturing continues to face escalated cost challenges on a global scale. To gain a competitive advantage among their rivals, manufacturing firms continuously strive to lower their manufacturing costs than their competitors. This dissertation introduces mathematical optimization model based on an Activity-Based Costing (ABC) method, which considers the relationship between hourly rates and annual hours on each machine/workcentre. Several constraints are considered in the proposed models, such as the cost of reconfiguration, capacity, available machining hours, a decision on facility expansion and a cost-benefit analysis on industry 4.0 implementation. The model outputs are the optimum hourly rates, deciding which jobs to accept or reject, and determining reconfiguration\u27s financial feasibility. Reconfiguration in this dissertation describes system-level reconfiguration (investing in additional equipment/machinery) and/or machine-level reconfiguration (extra module to a piece of existing equipment) as well as factory-level (in terms of expanding additional factory segments to the existing facility). The model will be applied to a real-life case study of a global original equipment manufacturer (OEM) of machinery. The mathematical models proposed in this dissertation are developed based on a multinational hydraulic-press manufacturing company. The company owns a local machine shop (one of the sister companies in North America) for building hydraulic presses meant to be delivered to companies producing engineered wood products (such as OSB (oriented Strand Board), PB (Particle Board), and MDF Board (Medium-Density Fibre) …etc.). The sister company in North America occupies a footprint of 5,000 meters squared with a number of capabilities such as machining (turning and machining centres, welding, assembly, material handling…etc.). Several aspects of the model proposed in this dissertation had been implemented in the company such as the bi-directional relationship between total hours and hourly rates which assisted the company in gaining more jobs and projects. In addition, connectivity between strategic suppliers and company branched has been established (enabler of Industry 4.0). The proposed model\u27s novelty incorporates the bi-directional relationship between hourly rates and annual hours in each workcentre. It provides a managerial decision-making tool for the investment level required to pursue new business and gaining a competitive advantage over rivals. Furthermore, a cost-benefit analysis is performed on the implementation of Industry 4.0. The primary aspect considered in industry 4.0 is Information Communication Technology (ICT) infrastructure with strategic suppliers to intensify interconnection between the manufacturing firm and the strategic suppliers. This research\u27s significance is focused on cost analysis and provides managers in manufacturing facilities with the required decision-making tools to decide on orders to accept or decline, as well as investing in additional production equipment, facility expansion, as well as Industry 4.0. In addition, this research will also help manufacturing companies achieve a competitive edge among rivals by reducing hourly rates within their facility. Furthermore, the implementation of the model reduced hourly rates for workcentres by up to 25% as a result of accepting more jobs (and accordingly, machining hours) on the available workcentres, and hence, reducing the hourly rates. This implementation has helped the company gain a competitive advantage among rivals since pricing of products submitted to customer was reduced. Additional benefits and significance are (1) providing manufacturing companies with a method to quantify the decision-making process for right-sizing their manufacturing space, (2) the ability to justify growing a scalable system (machine level, system-level and factory level) using costing (not customer demand), (3) expanding market share and, (4) reducing operational cost and allowing companies a numerical model to justify scaling the manufacturing system

Johnson Graduate School of Management

Cornell University Courses of Study Vol. 89 1997/9

Johnson Graduate School of Management

Cornell University Courses of Study Vol. 89 1997/9

A model for linking shop floor improvements to manufacturing cost and profitability

Manufacturing units in the so called high-cost countries are struggling under fierce competition on the global market. In order to survive, the factory needs to generate profit to its owners. Profitability can be reached in many different ways apart from only lowering the employees' salaries. It can be improved through increased profit margins (sales in relation to costs) or with an increased capital turnover rate. Finding ways to free capacity and to improve flexibility in order to increase sales is often more interesting to the manufacturing companies than cutting the direct salary costs. A model for analysing profitability of a manufacturing unit is proposed. It is found on a production system analysis and combines in-depth production engineering analysis with economical accounting analysis of the factory. The manual work tasks are of special interest and the productivity of selected bottleneck work areas are analysed thoroughly. The model is intended for use by two industrial analysts during a one-week study. Simulation of different improvement scenarios is carried out and presented to the factory management at the end of the profitability study. A software implementation is required in order to generate the model, collect data and make simulation within the intended time. The implementation is made in spread sheet software using Visual Basic to program interfaces and automatic functions. The primary area of application is the electronics industry in Sweden where the model is used in a research project to strengthen the competitiveness of that industry

Johnson Graduate School of Management

Cornell University Courses of Study Vol. 89 1997/9

Strategic business management : from planning to performance

https://egrove.olemiss.edu/aicpa_guides/2682/thumbnail.jp

Measuring the Success of Activity Based Costing within the Enterprise Resource Planning Environment in Greek Companies

Activity-based costing (ABC) is a strategic tool that can enhance all processes and functions of an organization once it is implemented successfully. This study aims to examine the ABC implementation success in Greek companies in major sectors of the economy. A web-based questionnaire was conducted between February 2020 to January 2021 and collected data from 102 companies found in major sectors of the Greek economy. ABC implementation success was assessed across five dimensions, namely, general attitude toward the implementation process, technical and technological characteristics, impact on organizational process, perceived usefulness in improving job performance, and perceive ease of use. Further, this study compared companies that fully implemented ABC to those that still practice traditional cost accounting (TCA), assessing factors that influence ABC success within Enterprise Resource Planning (ERP). Findings from this study show that a successful integration among ERP and ABC can minimize the operation costs and enhance the competitiveness of the enterprise. In particular, the findings indicated that the degree of ABC within ERP implementation success positively motivates the extent of its use, enhances user performance, increases productivity, and increases user satisfaction with the system. This study contributes to the existing literature since there has been limited research on measuring the success of ABC within ERP implementation in Greek companies. Further, it provides theoretical and practical insights about factors that might influence the success implementation of ABC within ERP that can be applied to other countries. Overall, entities with ABC implementation have improved outcomes relative to those with TCA