Total Cost of Ownership-Analyse mit VOFI

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Improving the efficiency of the purchasing process using total cost of ownership information : The case of heating electrodes at Cockerill Sambre S.A.

Improving the efficiency of the purchasing process provides important opportunities to increase a firm's profitability. In this paper we introduce a mathematical programming model that uses total cost of ownership information to simultaneously select suppliers and determine order quantities over a multi-period time horizon. The total cost of ownership quantifies all costs associated with the purchasing process and is based on the activities and cost drivers determined by an activity based costing system. Our approach is motivated by the purchasing problem of heating electrodes at Cockerill Sambre S.A. a Belgian multinational steel producer. In this case quality issues account for more than 70 % of the total cost of ownership making the quality of a supplier a critical success factor in the vendor selection process.Efficiency; Heating; Processes; Purchasing;

TOTAL COST OF OWNERSHIP IN SALES AND MARKETING

Background: There is an internal belief within Axis that despite their products’ relatively high initial price, the total cost of ownership (TCO) of an Axis camera solution is lower than that of other brands. However, there is no internal research or tools to verify if it is true. Without this, Axis is unable to communicate their belief in an educated and quantifiable way, which is desired in sales and marketing situations. Purpose: The purpose of this master thesis is to create a TCO analysis framework for a network based video surveillance solution from a seller perspective. The framework is then to be applied on Axis’s solutions to identify and weigh the most important parameters that affect the TCO. Based on this, a TCO analysis model that can be used by Axis’s sales force is to be developed. Methodology: The overall methodology used in the project is action research in combination with descriptive, exploratory and problem-solving approaches depending on the specific research question. The theoretical methodologies have been integrated with a TCO development and implementation framework, which has formed the research process. Conclusions: Existing literature offers a range of TCO frameworks, but little research has been done regarding TCO from a seller perspective. A TCO analysis is very case specific, why generic models are not appropriate. A new framework for the development of a TCO sales tool is therefore proposed, which is adapted and provides detailed guidelines to the network camera surveillance industry. Using this framework, more than 50 cost factors that affect the TCO of a camera solution have been identified and categorised. These were then implemented into a sales tool that can be used to analyse and demonstrate costs and benefits. The significance of the cost factors affecting the TCO for a camera solution varies a lot. For sales and marketing purposes, the parameters that the company can influence and that differentiate a product from another should be emphasised. The benefits for companies to utilise TCO in sales and marketing are several, even though there are some distinct barriers to overcome. For Axis, the developed TCO sales tool can be a strategic resource to help convince its customers to shift their focus from a low-price mind-set to a pursuit of low-cost solutions

Applying total cost of ownership for strategic procurement : three industrial case studies.

In this paper we elaborate on a Total Cost of Ownership supplier selection methodology that we have constructed using three real life case studies which are presented in this article. Analysing the value chain of the firm, data on the costs generated by the purchasing policy and on supplier performance are collected using Activity Based Costing (ABC). Since a spreadsheet cannot encompass all these costs, let alone optimise the supplier selection and inventory management policy, a mathematical programming model is used. Possible savings of between 6 and 14% are obtained for the three cases.Case studies; Studies;

An evaluation of vendor selection models from a Total Cost of Ownership perspective.

Many different vendor selection models have been published in the purchasing literature. However there has been no systematic approach to compare the relative efficiency of the systems. In this paper we propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models. We illustrate the comparison with real life data set of the purchasing problem of ball bearings at Cockerill Sambre, a Belgian multinational company in the steel industry. Mathematical programming models outperform rating models and multiple item models generate better results than single item models from a Total Cost of Ownership perspective for this specific case study.Evaluation; Models; Selection;

ERP inside Large Organizations

Many large companies in Romania are still functioning without an ERP system. Instead they are using traditional application systems built around the strong boundaries of specific functions: finance, selling, HR, production. An ERP will offer lots of advantages among which the integration of functionalities and support for top management decisions. Although the total cost of ownership is not small and there are some risks when implementing an ERP inside large and very large organizations, having such a system is mandatory. Choosing the right product and vendor and using a correct risk management strategy, will ensure a successful implementation.Enterprise Functions, ERP Functionalities, Process Lines and Solutions, Cost Implementation, Total Cost of Ownership, Risk Management, Active Global Support, ERP Advantages, Success Factors, Return of Investment

Personnel Problems in the Administration of Justice in Nigeria

Pontarius AB har tillsammans med Göteborgs Hamn AB identifierat behovet av en utvecklad holistisk modell för bedömning av investeringar i terminalytor. För detta har en första ansats gjorts med den interna livscykelkostnadsanalysmodellen Total Cost of Ownership and Operations (TCOO). Livscykelkostnadsanalys (LCCA) är ett verktyg för att handskas med ett projekts totala kostnader vid investeringsbeslut och bedömning av alternativ. Generella livscykelkostnads-modeller är svåra att ta fram, varför istället utförliga modeller vanligen skapas för specifika områden. För vägbeläggningar, och tillviss del flygplatsbeläggningar, finns utförliga sådana metoder, men för beläggningar i containerterminaler saknas det. För att fortsätta utveckling mot en bättre bedömningsmodell för terminalytor syftade studien till att identifiera kostnadsparametrar som sett ur ett livscykelperspektiv påverkar kostnaderna för containerhamnterminalytor. Utifrån dessa analyserades sedan livscykelkostnadsmodellen Total Cost of Ownership and Operations. Stor vikt lades i litteratursökning kring livscykelkostnads-analyser och kostnadsparametrar för containerterminaler. Vidare genomfördes även en intervjustudie mot Göteborgs Hamn, samt granskning av företagsdokument för att studera TCOO-modellen. Modeller för livscykelkostnadsanalyser för beläggningar på vägar och flygplatser visades till stor del även kunna appliceras på beläggningar i containerterminaler. Ägarkostnaderna, dvs. designkostnad, konstruktionskostnad, underhållskostnad, och restvärde, för de olika typerna av beläggning är lika. Vid driften av en containerterminal uppstår kostnader relaterade till beläggningen genom ojämnheter i ytan vilket ökar truckkostnaderna och även kan leda till långsammare godshantering. Produktiviteten är en viktig faktor för containerterminaler där faktorer som begränsar produktiviteten och kapaciteten kan leda till inkomstförluster. Vid avstängning av ytor för underhåll så påverkas produktionen stort och extra kostnader uppstår. Modellen Total Cost of Ownership and Operations jämfördes mot de identifierade parametrarna i litteraturstudien. Utvecklingspotential med Pontarius modell identifierades vara att följa en mer strukturerad process likt livscykelkostnadsanalysmodeller för vägar och flygplatser, samt en noggrannare identifiering och hantering av operationella kostnader i containerterminalen

Sustainable public transportation from a total cost of ownership perspective

Green transportation advocates decreasing use of private motor cars, the increasing use of walking, bicycle and public transport. Since the main factors for people who desire to travel are cost and time, the use of private cars has increased with significant negative impacts on environment. Total Cost of Ownership (TCO) is an analysis meant to uncover all the lifetime costs that follow from owning certain kinds of assets. In the near future, more people will be challenged to use a combined set of transports to minimize total transportation costs. In this study, a set of combined types of transportation (private cars, train and bus) was simulated by using a traffic simulation software and the TCO for a case of a route in the North of Portugal was calculated. Criteria for the evaluation of the different types of transportation included conventional cost of traveling (internal) and value of travel time and value of environmental aspects proceed by the CO2 emissions (external costs), all translated in monetary values using estimations of the value of time and of environmental impacts. The results showed the importance of the value of time estimation and confirmed public transportation as the best option under both conventional and extended TCO point of view