Production Cost Analysis Research Articles

Technical–economic assessment of stone slabs surface finishing using water jet technology

This paper examines, from an economic standpoint, some of the surface finishing results achieved for stone slabs using high pressure water jets. The results of both the management accounting method and a technical and economic cost analysis method are here applied. The latter method is specifically aimed at verifying and fine-tuning the management analysis model based on the technical coefficient matrix. The second method proposed allows one to examine each process in detail and easily determine technical–economic models for planning, processing and management. The type of production cost analysis proposed here is original, rigorous and precise. The fact that it captures all the most significant technical aspects of the process and clarifies their economic implications makes it far more preferable to the traditional final accounts analyses. Moreover, this technical and economic cost analysis method allows one to accurately calculate the unit cost of each product.

Key issues of wind capacity integration in congested areas of the Taiwan power system

As wind power penetrations increase in isolated power systems, it is very important to understand how variations in wind plant outputs affect the operation of the multi-area isolated system on a day-to-day basis and what the associated costs are. Production cost models need to be further advanced to adequately simulate utility operations and unit commitment (UC) of generation in response to higher wind penetrations. In this study, the dynamic programming (DP) algorithm is extended to facilitate economic sharing of generation and reserve across areas and to coordinate wind and thermal generation scheduling in isolated power systems with large integration of wind capacity. Five heuristic strategies are incorporated in the DP algorithm to improve solution quality and performance. Four important issues of wind capacity integration in congested areas of the Taiwan power system are also investigated and discussed by using the developed UC software. Numerical experiments are included to understand wind generator capacity in production cost analysis and to illustrate the effect of transmission capacity limits on wind power penetration level in each area.

Piña (Ananas comosus L. Merr) sembrada en labranza mínima y labranza convencional en San Carlos, Costa Rica.

The establishment and development of apineapple cultivation sowed in minimum tillage andconventional tillage was evaluated in San Carlos, Costa Rica.The work carried out consisted of a description of thepreparation of the land, and an analysis of organic matter,microorganisms and arthropods, nematodes, and mortality ofplants; an analysis of production costs was also made. Theconventional preparation of soil was carried out between fourand five months after paraquat application, while inminimum tillage the time preparation of soil was of twomonths after herbicide application. Also, in minimum tillagethe residues of the previous plantation deposited in theinternal streets can serve as a source of inoculum of pests anddiseases, besides hindering the drainage. The population ofmicroorganisms (bacterias, actinos and fungi) was higher inminimum tillage. In the analysis of arthropods, theconventional tillage showed higher populations of Oribatidaand Collembola, while in minimum tillage there was a largerpopulation of mites and larvae of Elateridae; the populationof Scarabeidae was similar in both tillage systems. Thepopulation of nematodes in soils and roots was also relativelylow. The main cause of plant mortality was due to diseasesknown as “rots” caused by the complex Phytophthora-Erwinia; but the incidence was low in both tillage systems.No significant differences were observed in plant heighteither. The costs of preparation of the land in minimumtillage were 50 % lower than those of the conventional tillage.

Economic Analysis of Lean Wastes: Case Studies of Textile and Garment Industries in Ethiopia

In today's competitive world, customers are demanding better quality products with fast and reliable deliveries. To meet this demand, new manufacturing technologies are developing rapidly, resulting in new products and improvements in manufacturing processes. As part of this effort, lean production principles have been established and are in use in developed countries to minimize and/or remove wastes. The purpose of this study is to identify and analyse lean wastes surfacing in production lines of four textile and garment industries. The information will make it possible for them to minimize or eliminate lean wastes using recommended tools and techniques. As a result, a smooth working environment will be created which will improve the plants’ ability to produce exactly the right quantity with the right quality and at exactly the right time, with a minimum of interruption. This study has followed qualitative and quantitative research approaches for collecting and analysing the data of the four cases chosen. The main methods used for data collection are questionnaires, shop floor visits, and check sheets. The empirical findings are analysed using appropriate tools of investigation and by theoretical concepts of lean production and economic cost analysis. The aggregate data collected over time show that there is substantial waste in the production process from the start of producing products to the day of delivery, using all available resources. Furthermore, the result of the analysis mainly demonstrates that there is an inconsistent production rate per shift, and noticeable employee turnover.

Why to Support Ecological Agriculture in the Common Agricultural Policies? Case of Romania

This paper has as the main objective the comparative analysis of production costs in fruitstrees ecological agriculture as well as for conventional agriculture. Sequentially, it was determinatedthe expenses changes that occur on similar farms in the two analyzed farming systems: ecological andconventional, using a survey instrument, a questionnaire which, provided data necessary to analyzedifferences in costs for different agricultural production. Based on the results of the comparative study,it can be observed that there are significant differences in the variable production costs and grossmargin of each culture, the lowest gross margin are recorded, mainly, for the farms on the conversionperiod, proving the necessity for supporting the ecological agriculture.

CHARACTERIZATION OF PRODUCTION COSTS AND ECONOMICAL VIABILITY OF GUAVA CULTIVATION IN THE REGION OF SUB-MIDDLE SÃO FRANCISCO VALLEY

The guava is one of the main fruit crops grown in the region of the Sub-Middle Sao Francisco Valley where its cultivation is practiced mainly by family farming and small agricultural companies. Guava cultivation needs a high cost management, and therefore producers should have good knowledge on crop management techniques, administration of production costs and economical viability of all the activities. This study aimed at characterizing the costs and identification of economical profitability of the typical guava production system in the region of Sub-Middle Sao Francisco. The characterization of production costs was studied through partial budget model. The economical performance of guava cultivation was determined based on the following efficiency indexes: net income, leveling point, cost/benefit relationship, entrepreneur return rate and safety margin, real net value, internal return rates, modified internal return rates, profitability index, profitability rate, present annualized net value and discounted payback. The analysis of guava production costs in the region of the Sub-Middle Sao Francisco reveals that the expenses with services largely overcome the input expenses. The annual production guava cultivated in the region is considered a profitable activity because the analysis of the economical performance parameters registered satisfactory numbers in several studied situations.

Warm-Mix Asphalt Pavement Performance and Energy-Saving Analysis Based on Crushing Bass

To the old cement concrete pavement which lost the overall loading capacity and large areas are damaged, by using rubblization technology to shocks, crushing and compaction it, pouring the warm-mix asphalt sealing, formed less than 60mm size of flexible base of gravel and paved with warm-mix asphalt pavement on this base. This article is about analysis of interlinear stresses of pavement structure and production cost analysis of mixture on this combination structure. Proved that the structure could in-place recycling, solving the environmental issues of dropped cement pieces garbage. Mix in mixture, spreading process of reducing harmful gas emissions, can save more than 30% of construction costs.

The economic performance of jatropha, cassava and Eucalyptus production systems for energy in an East African smallholder setting

AbstractThis study evaluates the potential economic feasibility of three smallholder energy crop production systems (jatropha, cassava and eucalyptus) under typical semi‐arid conditions in Eastern Africa. This feasibility is determined by assessing net present values (NPV), internal rates of return (IRR), benefit‐cost ratios (BCR) and payback periods (PBP). In addition, the production costs are compared to the costs of reference energy systems, petrol, diesel and pellets. Low and intermediate input systems are considered and specific attention is paid to the opportunity cost of labour, by considering both family labour (no labour costs) and hired labour. The results show that all family labour settings have positive NPVs and high IRR and BCR values. Moreover, cassava has the highest family labour NPV (2900–5800US$ ha−1) and the shortest PBP, but the required investment costs are high in comparision with the other crops. If hired labour is used, the NPV of eucalyptus is highest (380–1400$/ha−1), and it is also the least sensitive to changes in wages and yields. Jatropha performs best only for the indicator IRR and only with family labour or low labour opportunity costs. The analysis and comparison of bioenergy production costs shows that eucalyptus pellets (2.6–3.1$ GJ−1) are competitive compared with reference pellets at current market prices (5$ GJ−1). Jatropha SVO (19$ GJ−1) and cassava ethanol (19–36$ GJ−1) are only competitive with fossil diesel (21$ GJ−1) and petrol (25$ GJ−1) in a family labour setting. At current values jatropha biodiesel (24–37$ GJ−1) is not competitive. The economic performance is sensitive to variations in crop yields and yield data are highly uncertain. However, this study demonstrates that there is considerable potential for increasing the economic performance by further improvements in yield, harvesting efficiency and conversion efficiency as well as reductions in transport and packaging costs.

Second generation BtL type biofuels – a production cost analysis

The objective of this paper is to address the issue of the production cost of second generation biofuels via the thermo-chemical route. The last decade has seen a large number of technical–economic studies of second generation biofuels. As there is a large variation in the announced production costs of second generation biofuels in the literature, this paper clarifies some of the reasons for these variations and helps obtain a clearer picture. This paper presents simulations for two pathways and comparative production pathways previously published in the literature in the years between 2000 and 2011. It also includes a critical comparison and analysis of previously published studies. This paper does not include studies where the production is boosted with a hydrogen injection to improve the carbon yield. The only optimisation included is the recycle of tail gas. It is shown that the fuel can be produced on a large scale at prices of around 1.0–1.4 € per l. Large uncertainties remain however with regard to the precision of the economic predictions, the technology choices, the investment cost estimation and even the financial models to calculate the production costs. The benefit of a tail gas recycle is also examined; its benefit largely depends on the selling price of the produced electricity.

SYSTEMIC ANALYSIS OF CONTROL PROBLEMS OF SUGAR PRODUCTION IN LOGISTICAL SYSTEMS

Strategic management, the latest technologies, project-oriented approach for sugar industry enterprises are of great interest nowadays. The general trend of modern control systems of sugar production is the creation of logistical systems. They provide information collection and processing, control of deviations of actual values of the company operation from the planned, production scheduling and control, stock planning and control, logistical analysis, calculation and analysis of production costs, control of enterprise strategy and preparing recommendations for managerial decisions. The paper concerns the main issues of systemic analysis of sugar production tasks in logistical systems and efficiency of the enterprise. There is an analysis of the current condition and problems of sugar companies, and the key trends of information technologies development at sugar industry enterprises.

신재생 에너지원 기반의 마이크로그리드 최적운영 방안

This paper presents an optimal operation of microgrid systems and considering a tie-lines capacities that concerned each grid. The microgrid system consists of a wind turbine, a diesel generator, and a fuel cell. An one day load profile and wind resource for wind turbine generator were used for the study. For the grid interconnection, tie-line capacities were applied as constraints. The capacity constraints of tie-lines in production cost analysis are very important issues in the operation and planning of microgrid. In optimization, the Harmony Search (HS) algorithm is used for solving the problem of microgrid system operation which a various generation resources are available to meet the customer load demand with minimum operating cost. The application of HS algorithm to optimal operation of microgrid proves its effectiveness to determine optimally the generating resources without any differences of load mismatch.

Possibilities of Improving the Efficiency of Mining Companies

Polish hard coal mining has been struggling with numerous problems for many years. Currently, the main challenge for the industry is the need to improve efficiency. It is the prerequisite for survival of mining industry. Considering the importance and topicality of the issue there are threats and opportunities regarding efficiency improvement in Polish mining enterprises in terms of production costs presented in the article. Main thesis states that the analysis and evaluation of production costs connected with monitoring the branch and economic environment allows to specify procedures aimed at improving the efficiency in mining companies. In the first stage of the research the costs of coal production in 2006-2009 are analyzed and evaluated. Then, based on the results of the previous stage and review of internal and external conditions of mining enterprises performance, a catalogue of opportunities and threats for efficiency improvement is established. In the first stage of the research following methods are used: analysis of financial records, analysis of the structure and dynamics of the unit cost of production, comparative analysis and case study. In the second part of the research the SWOT analysis is adapted for the purpose of verifying the potential area of efficiency.

Production cost analysis and use of pesticides in the transgenic and conventional corn crop [Zea mays (L.)] in the valley of San Juan, Tolima

A survey of 10 producers of conventional corn (Hybrids PAC 105 and Maximus) and 10 producers of transgenic corn (Pioneer Hybrid 30T17) was carried out in the municipality of Valle de San Juan in the territorial division of Tolima (Colombia), in order to analyze the differences in production costs and environmental impacts of these two agricultural technologies. The environmental impacts were determined by calculating the field “Environmental Index Quotient” (EIQ). In the production cost analysis, a difference of 15% was found in benefit of the transgenic technology. The structure of costs of the transgenic technology was benefited by the reduced use of pesticides (insecticides and herbicides). In regards to production, the transgenic technology showed a greater yield, 5.22 ton/ha in comparison to 4.25 ton/ha the conventional technology, thus a 22% difference in yield. Finally, the EIQ calculation showed quantitative differences of 196.12 for the conventional technology (EIQ insecticides 165.14 + EIQ herbicides 30.98), while the transgenic technology was of 4.24 (EIQ insecticides 0 + EIQ herbicides 4.24). These results show a minor environmental impact when using the transgenic technology in comparison to the conventional technology, in regards to the use of insecticides and herbicides in a temporal, spatial and genotypical context analysis.

TROŠKOVI GOSPODARENJA ŠUMSKIM RESURSIMA U FEDERACIJI BIH I UPRAVLJANJE TROŠKOVIMA

UDK 630*6/.9(497.6)
 This paper deals with the forestry production cost analyses realised in Federation of B&H. The results of research point out on high differences of production costs between individual forest enterprises, caused by various ways of cost calculation, as well as by various production conditions. Therefore, the data obtained from enterprises are not comparable in whole, and as such, the data could not be used as the bases for calculation of an objective forestry production cost.
 To effect the activity based costing (e.g. activity of silviculture or forest utilization) is of particular importance. The used methodology is based on traditional costing, which is appropriate only for calculating direct costs, and not adequate to determine overhead (indirect) costs. Regarding these costing methods for calculating costs in forest enterprises, their performed forest activities are not appropriately valued. Today, as overhead costs are of considerable importance, the demand for more accurate costing methods has increased in the field of forest management. ABC (Activity Based Costing) method is a new dimension of cost analysis to record costs for each forest activities, towards objective forest management cost production determined. At the same time, it reveals the necessary costs for each activity, assures the proper layout of overhead costs to the forest activities.
 On the base of the defined forest activities for realization of forest management goals, as well as forest production capacities, we could understand the forest enterprises ability to achieve the goals and also to pay rent for using forest resources.

국내 단조산업 생산비용 조사를 통한 단조기술 분석

The forging industry is composed of those plants that make parts to order for customers; or make parts for their own company`s internal use; or make standard parts for resale. Also, the forging industry is closely related with automobile industry and ship building industry - Korea`s major export industry. But, it is hard to find the Korea`s forging industry`s statistical analysis because it is not revealed with final product. In this paper, we perform statistical analysis using the micro data service provided by the Statistics Korea. We focus on the analysis of production costs as well as the status of forging company and their employee.

Comparative analysis of cost factors in sturgeon fingerling production in Iranian hatcheries (2000-2004)

Production cost analysis in aquaculture is an essential exercise to assist farm managers. Economic assessment of a farm operation also provides the basis to formulate governmental aquaculture and enhancement policies in many regions. The present study employed questionnaires and interviewed managers while also using governmental statistics to gain insight into production cost variables in Iranian sturgeon hatcheries. Within a decade, production of sturgeon fingerlings for release and stock enhancement increased in Iran to more than 21 million fingerlings by 2004. Costs and contributions of various production factors were determined using data obtained from a questionnaire involving all hatcheries between 2000 and 2004. A team of experts completed the questionnaire data sets while conducting interviews at all sturgeon centres and other related departments. From 2000 to 2004 the contribution of A. persicus was 79% of the total number of sturgeon fingerlings produced followed by A. nudiventris with 7.5% and Huso huso with 6.6%. Among the various expenditures between 2000 and 2004, the costs for permanent and part-time employees contributed the greatest share of total costs, averaging 44%, with a noticeable declining trend from 51% in 2000 to 36% in 2004. Obtaining and incubating fertilized eggs averaged 22% of total costs, increasing during the same time period from 6 to 35%, respectively. On average, the 2000–2004 production cost for a single sturgeon fingerling was estimated at Rials 1667 (US$ 0.20), increasing from Rials 992 (US$ 0.12) to Rials 2623 (US$ 0.29) over these 4 years. Permanent staff at a hatchery was determined as being the principal cost, followed by costs for obtaining fertilized eggs (including broodstock handling). Over the 5-year study period the results indicated that costs for part-time labour declined yearly and, conversely, the costs of obtaining broodstocks as well as fertilizing and incubating eggs increased. Considering the background of hatchery production and stock enhancement of sturgeon species and the results of fishing data, it is possible to arrive at a first estimate of the potential contribution of Persian sturgeon farming to the total catch in Iranian waters; it is assumed that these increases were most likely through stock enhancement.

Economic analysis of cotton production in Adamawa State, Nigeria.

Cotton production has long been a good contributor to the Gross Domestic Product of Nigeria and this sector provides employment for some of the country’s teeming population. Production dates back to the 1960s and 1970s. Poor management and the oil boom period reduced production of both lint and seed. Despite all these factors, production still continues on a small and medium scale among farmers. There is a new trend to revitalize the ailing cotton farming industries and associated business. To achieve this, an understanding of the production potential and economics of production were essential. One hundred and ninety-nine cotton outgrowers randomly selected among cotton farmers from the cotton belt of Adamawa state, Nigeria were interviewed to provide information on production capabilities, constraints and economics of production for duration of three years. Findings indicated that most of the outgrowers are male and married, and have had substantial experience in cotton production. They are registered with one cotton farmers association of their choice. Economic analysis of production cost indicated that of the variable cost of cotton production/hectare, labour alone accounted for 50% of the total. The regression analysis showed that the best fitted model is the double Log function; it recorded a coefficient of determination (R2) of 0.61. In cotton production the cost of land rent correlated negatively with the cost of ploughing and planting. It was evident from the survey that cotton production in Adamawa state is challenged largely by poor pricing. Fluctuation in the price and cotton yield was noticed during the survey period. The study recommends the provision of input at subsidized price, functional extension services and establishment of a cotton commodity board to stimulate cotton production. Key words: Cotton production, variable input, outgrowers, demographic studies, Adamawa state.

A complete process for production of flexible large area polymer solar cells entirely using screen printing—First public demonstration

A complete polymer solar cell module prepared in the ambient atmosphere under industrial conditions is presented. The versatility of the polymer solar cell technology is demonstrated through the use of abstract forms for the active area, a flexible substrate, processing entirely from solution, complete processing in air using commonly available screen printing, and finally, simple mechanical encapsulation using a flexible packaging material and electrical contacting post-production using crimped contacts. We detail the production of more than 2000 modules in one production run and show that the production technique is scalable and well suited for direct transfer to the printing industry employing existing production equipment. The production speed and cost analysis for the individual modules from this batch is discussed and a forecast for the high volume cost based on this method is given. Further, the points where significant cost reductions can be achieved are identified. The use of the solar cell as the power supply for a small radio and other small electronic circuits is demonstrated. Lastly, the operational stability under ambient conditions in the dark and under illumination is discussed.

An integrated analysis of production costs and net energy balance of biofuels

Up to now, the “low” price of oil has prevented the development of alternative fuels but with the current high price and increasing scarcity, biofuels could become an economically attractive alternative. However, the economic assessment of biofuels has to take into account total production costs, including impact on agriculture, and the energy balance of first generation alternative fuels (biodiesel and bioethanol). Moreover, plans to produce biofuels from agriculture should not be achieved without considering the latest developments and reforms of the common agricultural policy, which promotes a change towards sustainable rural development based on multifunctional agriculture. From the analysis carried out, it emerges that first generation biofuels do not seem to be the best solution because of high production cost, limited land availability and low net energy balance. Furthermore, only a small quantity of biofuels can be produced as alternative to fossil oil because an incremental production will lead to the rising of agri-food prices. Only second generation biofuels could be a possible solution, although they still require much supplementary research and analysis.

Electricity Production Cost Analysis of a Combined Cycle Power Plant

In this study, thermoeconomic analysis of a combined cycle power plant (CCPP) is investigated. The aim of this study is to find the minimum electricity production cost (EPC). The variable parameters selected for the optimization are the compressor pressure ratio, turbine inlet temperature, isentropic efficiencies, discount rate, etc. In the analysis, all thermodynamic and thermoeconomic expressions are formulated as a function of these decision variables. Consequently, the developed model is solved and the conditions giving minimum unit EPC for each value of variable parameters are determined.