Cost Control Techniques Research Articles

Liquified Natural Gas (Lng) Downstream marketing and business growth in Nigeria: An empirical evidence small and meduim scale enterprises

The study focused on the effect of Liquefied Natural Gas downstream sector marketing on business growth in Nigeria, an empirical evidence from SMEs. Specifically the study also set out to achieve the following sub objective as follows; analyze the effect of low cost strategy on the cost advantage of the selected LNG plants in the study area and ascertain the effect of market focus strategy on the sales volume of the selected LNG plants in the study area. Various research questions were raised and research hypotheses formulated. Porters Five Forces Model was adopted as the theoretical underpin for the study. The study adopted a causal survey research design. Here the opinion of the respondents was elicited through a well-structured Likert-scale type of questionnaire. This was carried out through questionnaire administration to the 400 target respondents; especially the owners, managers and employees of the selected LNG plants in the study area. Simple regression model was used to test the hypotheses which was in conformity to the study objectives with the aid of Statistical Package for Social Sciences (SPSS) version 22. It was found that low-cost strategy is vital towards attainment of cost advantage in the oil and gas downstream sector. The study revealed that low-cost as a competitive strategy has significant effect on the cost advantage of the selected LNG plants in Abia and Imo States, Nigeria. We also found out that from the objective two, being market focused improves the firm’s sales volume. Hence, market focus strategy has significant effect on the sales volume of the selected LNG plants in Abia and Imo State. The study recommends that the selected LNG plants in Abia and Imo States should adopt cost control and cost reduction techniques; especially by the use of outsourcing, subcontracting, and buyer-seller relationship businesses and there is also the need to adopt market focus strategies by focusing on specific group of customers in a particular market segment.

DETERMINING COST CONTROL TECHNIQUE AND OVERCOMING CHALLENGES IN DAILY OPERATIONS: PERSPECTIVES FROM THE FOODSERVICE MANAGERS

As more new players enter the market, the Malaysian food and beverage industry is anticipated to have a bright future. Hence, it is becoming increasingly important to comprehend how food and beverage establishments make profits through cost control measures, an important aspect that is frequently overlooked academically. Limited studies have been conducted towards understanding cost control matters, especially in the Malaysian setting. This paper highlights the critical cost control techniques and ways to overcome issues in food service operations. An exploratory approach via qualitative study is deemed feasible to investigate cost control measures being practiced in their daily operations. Cost control techniques applied in the Malaysian food and beverage industry needs to be determined. Further, how managers overcome challenges in manning their food and beverage outlets needs exploration. Therefore, in answering the questions, semi-structured interview protocols were conducted on 25 foodservice outlet managers around the northern part of Malaysia. The findings suggested that most of the managers interviewed understand cost control techniques needed to operate outlets based on their routine experience of running their operations. In terms of overcoming the challenges, these managers depicted several solutions which reflected the survival of their business. Thus, some recommendations can be suggested to improve their daily operations to cultivate the correct application of cost control measures in food and beverage outlet operations.

Effect Of Cost Control Techniques on The Survival of Manufacturing Companies in Nigeria

Effect Of Cost Control Techniques on The Survival of Manufacturing Companies in Nigeria

IMPACT OF PROJECT COST CONTROL ON THE FINANCIAL PERFORMANCE OF SELECTED CONSTRUCTION FIRMS IN NORTH-CENTRAL NIGERIA

Effective financial performance is crucial for the growth of construction companies, and project cost control plays a key role in achieving this, using financial measures such as Return on Assets (ROA), Return on Equity (ROE), Cost Variance Analysis (CVA), and Earned Value Analysis (EVA). This study examined the impact of project cost control on the financial performance of selected construction firms in North-Central Nigeria. Data were collected from 102 construction professionals using a structured questionnaire, achieving a 100% response rate. Descriptive statistics (mean, frequency, percentage) and multiple linear regression were employed for analysis. The results showed that CVA and EVA significantly influence financial performance, with R-squared values of 69% for ROA and 77% for ROE. The regression models indicate that ROA = -0.012 + 0.605(CVA) + 0.746(EVA), and ROE = 2.359 + 0.087(CVA) - 0.143(EVA). The study concludes that CVA positively predicts both ROA and ROE, while EVA positively but negatively predicts ROE. It is recommended that construction firms enhance their use of project cost control techniques to minimise cost overruns, delays, and quality issues, leading to improved financial performance.

Pareto Suboptimal Strategy for Uncertain Mean-Field Nonlinear Stochastic Systems

In this paper, a static output feedback (SOF) Pareto suboptimal strategy for an uncertain mean-field nonlinear stochastic system is discussed. It is assumed that the nonlinear function in the stochastic system for each player is unknown and constrained by a norm-bounded function. As a preliminary result, the single-player case problem is solved in terms of the guaranteed cost control technique. As a result, it is shown that the necessary conditions satisfying the suboptimality of the upper bound of the cost are established by stochastic coupled-matrix equations (SCMEs). Next, the aforementioned results are applied to a mean-field stochastic system with a large population. Notably, a new necessary condition is described by the solvability condition related to large-scale SCMEs. To avoid the treatment of high-order computation for solving SCMEs, a new reduced-order numerical technique based on the fixed point iteration method is introduced. Consequently, the centralized strategy set is computed, although a large population is considered. Finally, to demonstrate the effectiveness of the proposed scheme, an academic example is solved.

Factors affecting the selection of effective cost control techniques in the UK construction industry

PurposeThis paper aims to identify and analyse the factors affecting the selection of effective cost control techniques in the UK construction industry and assess their importance. The study examines these key areas; the factors that have significant impacts on cost overruns, the most effective cost control techniques and the factors for selecting cost control techniques for a project.Design/methodology/approachThe study relies on a mixed-method research approach; a qualitative exploration of the most effective cost control techniques and the factors affecting the selection of cost control techniques, followed by a questionnaire survey and follow-up interviews. Relative importance index (RII) is used for ranking the factors.FindingsThe budgeting technique is ranked first with-0.821RII, followed by cost forecasting-0.800RII and cashflow monitoring-00.733RII, as the most effective cost control techniques. On factors that influenced the choice of the techniques used, cost information/cost-related factors are ranked first with-0.611RII, followed by the size of the company-0.509RII and the effectiveness of the technique-0.572RII.Research limitations/implicationsAlthough the scope of the study was limited to the UK construction industry, the results could be interpreted for critical learning in other developed/developing countries.Originality/valueIdentifying and ranking the factors affecting the selection of effective cost control techniques in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective model which can be used for critical learning on mitigating cost overruns and the effective use of cost control techniques in the construction industry.

New cost control techniques in mega construction projects

The construction industry in the U.K. is a vital sector of the country's economy. However, this industry is faced by various types of uncertainties and risks due to their dynamic environment, particularly for megaprojects. The study aimed to determine the modern and effective cost control techniques that are utilized in for mega construction projects in the U.K. A mixed-method approach that involves both qualitative and quantitative approaches were adopted in this research for data collection and analysis. Five semi-structured interviews with construction professionals were conducted first to find out modern and effective techniques used for projects cost control. This is followed by carrying out Delphi survey twice with 42 and 39 construction professionals. Results revealed that the top five techniques that can be utilized for controlling megaproject costs were: Activity-based costing method, Contract Variance – Unit Costing, To-Complete Performance Index (TCPI), Cost-Value Reconciliation and BIM.

An Artificial Neural Network Approach to Predicting Most Applicable Post-Contract Cost Controlling Techniques in Construction Projects

The post-contract phase of the construction process remains critical to cost management. Several techniques have been used to facilitate effective cost management in this phase. However, the deployment of these techniques has not caused a reduction in the incidence of cost overruns hence casting doubts on their utility. The seeming underwhelming performance posted by these post-contract cost control techniques (PCCTs), has been traced to improper deployment by construction project managers (CPM) and quantity surveyors (QS). Utilizing the perspectives of CPM and QS professionals, as elicited through a survey, produced 135 samples. The instrumentality of the artificial neural networks (ANN) in this study enabled the development of a structured decision-support methodology for analysing the most appropriate PCCTs to be deployed to different construction process phases. Besides showcasing the utility of the emergent ANN-based decision support methodology, the study’s theoretical findings indicate that CPM and QS professionals influence decisions pertaining to PCCTs choice in distinct phases of the construction process. Whereas QS professionals were particularly responsible for the choice of PCCTs during the initial and mid-level phases, CPM professionals assumed responsibility for PCCTs selection during the construction process close-out phase. In construction cost management practice, the crucial PCCTs identifies more with the application of historical data and all cost monitoring approaches.

Recent Developments in Construction Post Contract Cost Control Systems

Construction Cost control is an integral part of Cost management processes of Construction projects. Project cost management involves all the processes involved in planning, estimating, budgeting, financing, Funding, managing and controlling costs so that the project can be scheduled for completion within the approved budget. Cost overrun is a major global issue in construction project performance which occurs predominantly during the construction phase of a project. Different cost control techniques and models have been in practice to ensure cost performance, yet construction projects are rarely completed within the scheduled budget. Due to this incessant cost variances in projects, cost control systems are still being reviewed. Different construction outfits employ different techniques or similar methods just to ensure that cost is within budget. The ultimate concern of the Quantity Surveyor (QS) is to ensure that track records of all activities during construction is well articulated to nearest accuracy for monitoring site expenditures. For this reason, the QS on site daily does the routine work of cost data collections, recordings, analysis and reporting to keep expenditure within budget. This is usually the normal routine in most construction outfits in developing and underdeveloped countries. Different technologies are currently and methods have been employed to increase the efficiency and accuracy of construction data for cost effectiveness. The current technological trend and innovations is therefore reshaping cost control systems with the use of new technologies and software. There are new developments in the methods of controlling cost during construction due to the recent construction innovations. This paper presents the recent developments involved in controlling the cost of construction projects at the construction phase with emphasis laid on the construction innovations and technological advancement. The current different technologies used in implementing cost control were X-rayed and how the present-day cost managers are utilizing the new developments.

Cost Control and Profitability of Selected Manufacturing Companies in Nigeria

Profitability in manufacturing companies in Nigeria depends on the ability of the companies to grow their earnings and tame their cost profile through cost control techniques. Many manufacturing companies seem not to understand these costs and the impact they have on profitability. This study examined the effect of cost control on the profitability of selected manufacturing companies in Nigeria. The population of the study was the 78 manufacturing companies listed on the Nigeria Stock Exchange as at 31st December 2017. A sample frame of 23 companies listed on the consumer goods sector was selected out of which five companies were considered for a period of 10 years (2005 – 2017). The study adopted a judgmental sampling technique. Data were obtained from the audited financial statement, and the accounts have already validated by regulatory authorities. The study took descriptive and inferential (regression) statistics. It was found that there is a significant negative relationship between the cost of raw materials (CoRM) and profit before tax of manufacturing companies in Nigeria. The study concluded that cost control has a significant positive effect on the profitability of manufacturing companies in Nigeria for the period under review. Therefore, it is recommended adequate management and alternative sourcing of raw materials.

Analysis of Cost Control Techniques Used on Building Construction Projects in Sri Lanka

It is an eminent fact that the Sri Lanka construction industry is important for economy as well as fisheries sector and tourism sector. It plays a crucial role to accelerate the economic development of Sri Lanka. It is noted that in the current context, many construction projects in Sri Lanka have not been achieved their goals and targets in terms of cost. Therefore, good cost control techniques would be essential to solve those problems. This research is for mainly identification of costs overruns in the building construction projects in Sri Lanka. During past few years various project control techniques have been developed time to time.

Impact of Cost Control Techniques on Cost Overruns in Construction Projects

Construction industry plays an important role in the development of a country. The success of any project will depends on how that project can achieve its objectives in terms of cost, quality and duration. In order to achieve success in a project, it would be essential to plan that project well and have a proper monitoring mechanism in place. Cost overrun is a major problem encountered by many contractors as it makes the profit of a project less secure for the contractor in addition to causing many other problems to all the parties involved. Good cost control techniques would be essential to solve those problems. Thus, it is important to identify cost controlling techniques and their impact on cost overruns. This study was done using a questionnaire survey conducted among C1-C5 grade contractors. The data collected were analysed by converting them into quantitative values using percentage analysis and weighted score analysis. The results indicate the cost controlling practices that are in frequent use and their importance in minimizing the cost overruns in order to reduce over budget and overheads while securing anticipated profits. Finally, it is suggested that CIDA (ICTAD) should encourage contractors to use cost controlling techniques, by conducting training programs, awareness programs, etc. It is also suggested to make the use of some of ICTAD documents mandatory.

Effect of Cost Control and Cost Reduction Techniques in Organizational Performance

In any organization, the major objective is to maximize profit, but the main constraints facing them are the rise in cost of operation. Due to this, the cost of production increases and could lead to certain cost control and cost reduction which make it complex for many organizations to operate as well organized cost limit of knowledge. The study aims to critically examine and evaluate the application of cost control and cost reduction in organizational performance and also to review the budget as an effective tool of cost control and cost reduction. A descriptive survey research was adopted. A total number of 50 questionnaires were administered and used for the study. The analysis of data collected was undertaken by applying appropriate statistical tools. Regression analysis was used to test the hypothesis with the use of SPSS. Based on the findings, it was evident that cost control has a positive impact on organizational performance and also the style of management has a positive impact on organizational performance.

REKAYASA NILAI HARGA PEMBUATAN TERHADAP EFEKTIFITAS PENGGUNAAN BAHAN PADA PEMBANGUNAN PERUMAHAN TIRTO PENATARAN ASRI TIPE 70/135 KECAMATAN NGLEGOK KABUPATEN BLITAR

One-solving methods and techniques necessary to avoid inefficiencies and not economic costs as well as reduce the cost of housing construction is the method of Value Engineering. Value engineering is a method and cost control techniques to analyze a function to its value at the lowest cost alternative (most economical) without reducing the quality desired.At the writing of this study used a comparison method by comparing the initial design to the design proposal of the author. In the housing projects Upgrading Tirto Penataran Asri type 70, the application of Value Engineering conducted on the job a couple walls and roofs pair by replacing some work items with a more economical alternative but does not change the original function and high aesthetic level and still qualify safe. For that performed the step of determining a work item, the alternative stage, the analysis stage, and the stage of recommendations to get a Value Engineering application and cost savings against the wall a couple of work items and partner roof.The proposed design as compared to the initial design. Work items discussed was the work of a couple wall having analyzed obtained savings of Rp. 2,747,643.56 and the work of the roof pair obtained savings of Rp. 2,363,446.80. Thus the total overall savings gained is Rp 5,111,090.36 or savings of 0048%.

REKAYASA NILAI HARGA PEMBUATAN TERHADAP EFEKTIFITAS PENGGUNAAN BAHAN PADA PEMBANGUNAN PERUMAHAN TIRTO PENATARAN ASRI TIPE 70/135 KECAMATAN NGLEGOK KABUPATEN BLITAR

One-solving methods and techniques necessary to avoid inefficiencies and not economic costs as well as reduce the cost of housing construction is the method of Value Engineering. Value engineering is a method and cost control techniques to analyze a function to its value at the lowest cost alternative (most economical) without reducing the quality desired.At the writing of this study used a comparison method by comparing the initial design to the design proposal of the author. In the housing projects Upgrading Tirto Penataran Asri type 70, the application of Value Engineering conducted on the job a couple walls and roofs pair by replacing some work items with a more economical alternative but does not change the original function and high aesthetic level and still qualify safe. For that performed the step of determining a work item, the alternative stage, the analysis stage, and the stage of recommendations to get a Value Engineering application and cost savings against the wall a couple of work items and partner roof.The proposed design as compared to the initial design. Work items discussed was the work of a couple wall having analyzed obtained savings of Rp. 2,747,643.56 and the work of the roof pair obtained savings of Rp. 2,363,446.80. Thus the total overall savings gained is Rp 5,111,090.36 or savings of 0048%.

Development of Guidelines for Low Volume Concrete Road Construction in Sri Lanka

The purpose of the study was to develop guidelines for construction of low volume concrete roads in Sri Lanka. A survey was carried out to study current concrete road construction practices and knowledge of the contractors involved in concrete road construction. Survey results show that good practices have not been adopted in low volume road construction in Sri Lanka. The authors have introduced best practices which can be easily adopted by the local road construction industry. Incorrect joints construction was observed in concrete roads during the site visit and the Authors have introduced a new device for contraction joint construction. A modification to the available method was proposed to measure surface undulation on local concrete pavements and allowable undulation was determined through field investigation. A comparison of various kinds of concrete producing and curing methods and their performance were studied. The authors have evaluated the effectiveness of rebound hammer method which has been used for quality control by some consultants. Rebound hammer reading was compared with compressive strength which was found out from core cutter samples. Double beam vibrator with inbuilt camber was introduced to consolidate and form the camber of the surface layer. Check lists for subgrade /subbase, shoulder, formwork and concrete placing and finishing have been introduced to address weakness and enhance the quality of the pavement construction. Quality and Cost control techniques in the field of low volume concrete road construction in Sri Lanka are also described. Further, the proposed guideline describes the most appropriate methods for preparation of subgrade, subbase and shoulder, and mixing, placing and finishing of concrete.

Pricing in a Service Sector Context: Accounting and Marketing Logics in the Hotel Industry

The paper analyses hotel room pricing via an application of institutional economic theory. The institutional framework considers the impact of accounting and marketing templates that help hotel managers make sense of complex pricing decisions. From an institutional perspective, the spread and implementation of these templates is influenced by specific historical factors and may be subject to path dependency. The institutional theory is applied to a case study using a pragmatic constructivist methodology. The case site revealed that whilst long run cost structures are important in locating the market niche of the business and that hotels use conventional cost control techniques, costs play relatively little role in price determination with a dominant role for marketing templates that concentrate on revenue management. The study suggests how the synthesis between institutional economics and pragmatic constructivism offers a research framework that could be replicated in further studies.

Coordinated control of AFS and DYC for vehicle handling and stability based on optimal guaranteed cost theory

Considering the uncertainty of tyre cornering stiffness due to the frequent variation of running conditions, a new coordination scheme is proposed based on optimal guaranteed cost control technique by coordinating active front steering and direct yaw moment control. A general procedure to develop an optimal guaranteed cost coordination controller (OGCC) is presented, and the effect of uncertainty deviation magnitude on the control system is discussed. An optimal coordination (OC) scheme based on LQR is also presented. Many simulations are carried out on an 8-DOF nonlinear vehicle model for a slalom manoeuvre and a lane-change manoeuvre, respectively. The simulation results show that the OGCC scheme has superior stability and tracking performances at different running conditions compared with the OC scheme.

Robust stabilization of multimodeling systems via guaranteed cost control theory

AbstractThis paper considers the robust stabilization of uncertain multimodeling systems. The guaranteed cost control technique is used to choose the design parameter which is included in the control gain. The ε‐independent quadratically stabilizing controller is newly proposed. It is shown that if the reduced‐order algebraic Riccati equations (AREs) have positive definite stabilizing solutions, then closed‐loop uncertain multimodeling systems with the proposed controller are quadratically stable and have a cost bound. To show the effectiveness of the proposed algorithm, a numerical example is included. © 2007 Wiley Periodicals, Inc. Electr Eng Jpn, 160(4): 49– 59, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20271

The Costs Of Mental Health Parity: Still An Impediment?

Parity in mental health benefits rectifies unfairness in health insurance coverage and reduces financial risk for those with mental illness. However, increased coverage for mental illness has been seen as creating inefficiencies and increasing total spending, based largely on results from the RAND Health Insurance Experiment conducted in the 1970s. Newer evidence suggests that cost control techniques associated with managed care give health plans alternatives to discriminatory coverage for containing costs. We review both eras of research on mental health insurance and conclude that comprehensive parity implemented in the context of managed care would have little impact on total spending.