Cost Management Process Research Articles

Stakeholder competency in evaluating the environmental impacts of infrastructure projects using BIM

PurposeBuilding information modelling (BIM) literature reveals a growing interest in the development of a competency-based approach to manage the long-term goals of BIM implementation in infrastructure projects. One long-term goal is mitigation of environmental impacts (EIs). It is proposed that by integrating environmental systems within the BIM model, the technology can act as an early warning indicator to assist stakeholders identify and evaluate EIs before they become critical to delivery. The purpose of this paper is to assess the effectiveness of BIM in identifying EIs on infrastructure projects and investigate the correlation between stakeholder competency and evaluation of EIs.Design/methodology/approachIn all, 71 informants that have relevant experience in infrastructure projects were investigated using a two-stage methodology comprising a questionnaire to determine the BIM indicators used to identify EIs and the stakeholder competencies required to assess and evaluate EIs and Behavioural Event Interviews (BEIs) to validate the competencies identified.FindingsThe findings showed that risk assessments are the most critical early warning indicator in identifying EIs specifically when implemented within the cost management process. The key stakeholder competencies required to successfully evaluate EIs were identified as project organisation and building equitable relationships. BEIs showed these stakeholders to also have high levels of behavioural and contextual awareness. This suggests that, contrary to perceived perception, successful management of EIs is more dependent on collaborative working than the acquisition of technical skills. Findings also indicated that Croatian BIM stakeholders are less experienced than UK BIM stakeholders in project implementation and delivery and that less experienced BIM stakeholders require more emphasis on technical knowledge whilst the importance of “soft skills” is more apparent in experienced stakeholders, notably amongst the UK participants.Originality/valueThe implications for infrastructure projects show that effective management of EIs can be achieved through alignment of the BIM model with the cost management plan implemented by stakeholders working collaboratively. Hence, the strategic focus for AEC companies working on infrastructure projects should be the development of staff interpersonal competencies rather than solely on project goals and/or an over-emphasis on technical skills.

УПРАВЛЕНЧЕСКИЙ УЧЕТ ЗАТРАТ НА ПРЕДПРИЯТИЯХ ТРУБОПРОКАТНОЙ ПРОМЫШЛЕННОСТИ

Today metallurgical plants play a significant role in the Russian economy. According to current research studies in the Russian economy there are more than 28 000 enterprises, which offer different products and services in the sphere of metallurgical production. In general terms the indicated sector can be divided into ferrous and non-ferrous metallurgy. The first type plays a more important role. The separate segment of the ferrous metallurgy market is a pipe and tube production. The pipe rolling enterprises play a key role in the development of the economy of the Ural Federal District. In accordance to the data of statistical survey more than 100 000 people work in enterprises of the abovementioned industry, which makes up about 1/3 of all working population in the manufacturing industry. Moreover, pipe rolling plants also hold a significant position in terms of sales among enterprises which are engaged in different economic activities. Today administration of the majority of pipe rolling enterprises is facing a problem of forming effective cost accounting. Based on the data of several investigations one of the factor in achieving a sustainable competitive advantage is a possibility to reduce costs associated with the production and realization of pipe rolling products. The need for effective cost management is largely associated with their role in the process of profit generation. It’s the profit which ultimately serves as a main condition of the company’s sustainable economic development facilitating the achievement of competitive advantages on the market. In this regard for the most of pipe and rolling plants the profit maintenance by an effective continuous process of cost management is quite modern phenomenon in terms of current trends of financial and economic development.

Project cost control: a new method to plan and control costs in large projects

Purpose The purpose of this paper is to reengineer the process of cost management in large projects. Design/methodology/approach Considering the fact most large projects overrun their budgets because of the long time period needed to completion, it was decided to reengineer the cost management. Accordingly costs allocated to packages were reviewed and changed on a dynamic basis. Different types of contingencies were provided. Concepts of package contingency and project contingency were introduced. These were based on the project buffer and feeding buffer concepts popularised by Eliyahu Goldratt. Findings The re-engineered method of cost control worked well and yielded better than expected results, leading to the setting up of a new world record in the completion time for setting up a million tonnes per annum continuous, tandem cold rolling mill to roll steel sheets. Research limitations/implications In view of the total success of the reengineered approach, which was tested out on a large project over three years, it is felt that other projects could also try out this technique, especially since it is along the lines proposed by Eliyahu Goldratt who is an authority on project management. However the success can be better understood if the results of the testing become available. To that extent the contents of the present paper have limitations. Practical implications Large projects can deploy the methodology and complete their projects on time and under budget. Social implications The reengineering of the cost management was done primarily with a view to complete projects under budget. Since many governments spend many billions of dollars on publicly funded projects for the welfare of citizens, the use of this technique could have a salutary effect on the cost. Originality/value The method was innovated in the company by the author’s team and deployed in a live project over four years for the first time to achieve world-class results.

Управление затратами организации с использованием кост-киллинга

This article deals with the process of cost management. The author provides
 a description of cost-killing as a method of cost management and the ways of its
 application with regard to the productive capacity, personnel, inventory, logistics
 and distribution management, reveals a need for optimization of and rationing
 variable costs of production by constructing an econometric model.

Implementation Of Automated Systems For Target Cost Management And Assessing Performance: A Case Study In A Global Automobile Component Company

We examine the implementation of automated systems for target cost management and assessing firm performance in global automobile component company. After financial crisis, companies need to make strategic decisions as fast as possible. However, global companies are difficult to make fast decisions because of taking time for sorting the internal data through oversea companies. Also there are difficult to build systems of cost management and assessment of performance achievement. In this study, as we explain elaborately about the automatic process of cost management and assessment of performance achievement systems in global automobile component companies, we provide practical implications of this benchmark case for other companies’ automated target cost management systems and assessing performance system’s innovations.

IT Governance in Actor-Network Mode of Collaboration : Cost Management Process Based on Game Theory

IT governance, like global governance of projects, requires cooperation between several actors. In general, such cooperation builds a collaboration network between entities. Many works in the literature interested in collaboration network, but no one of them were focused directly on how to build a network in an IT governance perspective. In this paper, we investigate how game theory can be exploited to provide a formal implementation of Cost Management Process, while highlighting Actor-Network as a framework of collaboration and its incentive stage as a key step for network construction. Our objective is to propose an approach of network establishment, by inciting actors through cost savings. For that, we use Shapley Value to answer the question: For the sake of IT governance, which coalitions are likely to form in order to ensure best cost-saving objectives in ANT mode of collaboration? A graphical tool is developed also to visualize and simulate networks evolution.

Document Support of Cost Management in Underground Construction Projects

The article presents identification and aggregation of cost management processes in conjunction with project life-cycle in underground construction. For the purpose of improvement of the project effectiveness the article recommends the system of document support for cost project management. The article gives specification of the main types of documents, describes its assignment and the order of its inputting in respect to developers.

Planning process of cost project management of urban passenger traffic

In this article the approach to the creation of effective cost management technologies in projects of urban passenger traffic is considered. The result of the research is a proposed set of mathematical models of planning project cost management processes of urban passenger traffic, which allow forming the project budget. It is done mathematical modeling of risk factors on the probability of project payback with given parameters

ФОРМУВАННЯ КОНЦЕПТУАЛЬНОГО ПІДХОДУ ДО УПРАВЛІННЯ ВИТРАТАМИ ПІДПРИЄМСТВ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ

The article substantiates the need to build a new effective conceptual approach to cost management of enterprises of railway transport. Critical analysis of theoretical developments on the issue and also highlighted the main features of the existing concepts of cost management. On the basis of the conducted research the features of the process of cost management. Highlighted features of functioning of railway transport that should be considered when building a conceptual approach to cost management of enterprises of railway transport. Defined the concept of cost management that should be taken as basic to the formation of a new effective conceptual approach to cost management of enterprises of railway transport. Outlined the key provisions of the proposed conceptual approach to cost management of enterprises of railway, and a dedicated strategic business unit, responsible for their implementation.

Target costing – znaczenie perspektywy klienta w procesie ustalania ceny

The purpose of this article is to present, from marketing perspective, the essence of target costing. The concept of target costing refers to the process of determining the costs and defining the level of prices – the area of marketing activities, where taking into account the role of the client was not a standard. The idea of target costing was born in an extremely competitive environment in Japan in the 60s. of the twentieth century. And it is seen as an important tool to reduce costs and to improve the competitiveness level of the company. According to target costing, concept price plays an important role in the whole process of cost management – price is the starting point of all activities, what is important – it is a determinant of the cost not vice versa.

The Research on Cost Management of Steel Pipe Enterprise Based on Activity-Based Costing

In this paper, through analyzing the current cost management process of a steel pipe enterprise, the disadvantages of the method used in the enterprise is pointed out. Cost deviation can be greatly reduced by using Activity-Based Costing. Finally, a cost management system is developed.

Cost Management for IT Activities: A Case Study in the IT Division of a French Bank Using Activity-Based Costing

The costs of information technology (IT) activities have been increasing rapidly these recent years, due to the technological sophistication and more market-oriented strategies that complexify the value chains of the firms. Many of these expenses do not relate to individual products but are associated to customers, market segments and distribution channels. In this context, the companies try to understand the cost of selling their products and services. This is the reason why customer-driven and market-oriented cost management approaches have gained in popularity.In this paper, we review in a first part the strategic cost management stream and the way we can give a customer orientation to cost management processes, based on the Activity-based costing (ABC) method. In a second part we present a case study that takes place in the IT division of a French Bank that has developed an ABC method since several years. We describe how the ABC model has evolved toward a process that enables to compare the performances of different customers. With this case study, we will conclude about the new forms of management controls and controllers that emerge.

Empirical Study of Cost Management Success Determinants in Agile based Software Development Project: A Rasch Measurement Model Analysis

Ineffective cost management in software development causes project over budget and strongly contributed to project failure. Due to that, it is important to look at the success determinants that help software development community to have better cost management of the project. This paper identifies the success determinants in agile based software development project. The online survey is used in order to collect data from the respondents. The items involve the cost management process in the company in Malaysia. This paper used Rasch Measurement Model to analyze the result. Preliminary findings show a small number of respondents and the respondents are not representing the sampling unit becomes a problem to generalize the result. As a result, this paper provides very low item reliability and person reliability is acceptable. Therefore, more feedback from respondent is needed in order to increase the item and person reliability.

Study on Large Power Grid Construction Projects Whole Process Cost Management Modes

Cost management is an important part of power grid construction project management, reasonable cost management should start from project decision-making stage and end at completion acceptance stage, namely whole process management. This paper expounds the connotation of whole process cost management, at the same time, puts forward proposed plans as to its application in large power grid construction projects, and makes interpretation about meanings of power grid construction projects whole process cost management.

Strengths of Taiwan’s Medical Device Industry

This paper presents an overview of the medical device manufacturing industry in Taiwan. Taiwan’s medical device manufacturers have achieved mature production technology in homecare products. With assistance provided to international giants through Original Equipment Manufacturer and through sales of self-owned brands, they are securing a predominant position on the global market. Contact lenses and glucose meters made in Taiwan have also shown significant growth in production and exports for the past few years and have become potential export-oriented medical devices for Taiwan. Taiwan’s manufacturers can quite professionally deal with issues such as flexible manufacturing and process cost management, and they are rather competitive in emerging markets that demand high quality and fair prices. These qualities help maintain the continuous increase in export momentum. In addition, international manufacturers, one after the other, are establishing their research and development centers in China and purchasing related parts and components locally to form their supply chains in Asia. This helps Taiwan’s manufacturers in other industrial sectors who are proactively making investments in the medical device industry and driving high value for the industry get the upper hand when they seek to connect with the global medical device industry, as well as be able to cut into the international medical device supply chain in the future.

Project-Based Manufacturing Engineering Practice at Ibaraki University and Its Outcomes

The real world experience of manufacturing processes from an idea stage to a final product must be related to classroom lectures in mechanical engineering curriculum, including design, materials engineering, dynamics and control. Various challenges and difficulties encountered during the manufacturing engineering practice also let students recognize their creativity as well as what kinds of knowledge is missing. Awareness is the start of growth. In line with this principle we have carried out the mechanical engineering practice for 10 years. Some modifications toward “project-based practice” , however, have been made through manufacturing engineers’ real activities. Drawing and specification, process control, cost management, and role-sharing arrangement are stressed during the semester course. The present paper describes how it works and what is left to improve further, such as a refinement of themes and a coaching method for bringing out the hidden talent in students.

Book Review: Cost management in shipbuilding

Shipbuilding is characterized by the specific features of the unit production, high complexity and long project duration as well as global competition. Therefore, the shipbuilding process requires special cost management procedures. Against this background the authors demonstrate how effective cost management methods and processes strengthen and ensure a manufacturer’s competitiveness in the maritime industry. A main focus of the book is on the available system support for efficiently planning, analysing and controlling a ship’s costs in all building phases. In addition to design and manufacturing, also the in-service phase of the ship is included in order to optimise the whole life cycle cost.The book is based on knowledge, which the authors gained by more than 10 years experience in industrial cost management and shipbuilding and addresses specialists confronted with the practical challenges of cost management in everyday business.DOI: http://dx.doi.org/10.3329/jname.v8i1.7068

Planning and Management of Construction Budgetary Costs

T•� ƒ‚„�‚„ƒ†‚ †¹ �¶�…– ƒ‚¶��„†… ƒ� „† †¸„�ƒ‚ ”†‚�„…‰”„ƒ†‚ ½†…· ƒ‚ „•� ˜†�„ �¹¹�”„ƒ¶� �‚— �”†‚†˜ƒ” ˜�‚‚�…. In other words the investor is trying to achieve the highest value for money for his capital investment. This goal can be achieved by systematic management of the investments throughout the planning process, design and construction phases of a project until the final account is paid and permission granted for use of the building. In order to achieve this, it is necessary to estimate the development cost during the planning and design phase and control or manage this cost throughout the project. The cost management process and the selection of a contractor are important factors for investor to achieve this goal.

COMEX: A cost management expert system

Understanding and using cost management is a key to success in any type of organization, because it helps managers to collect important data about the costs assigned to products, services and customers and use it for planning and control function. This paper discusses development and application of an expert system for reasonable cost related decision making and continuous cost management process improvement. The system is called COMEX (cost management expert system). This paper also shows how COMEX can be used for improvement of the billing department business processes. COMEX relies on information generated using the activity-based costing (ABC) method, accounting method based on activities, created to improve cost management system by focusing on the driver costs of individual activities. Still, this paper focuses on design and implementation of the COMEX system, and only briefly surveys the ABC method.

The Steps of Implementing Target Costing

Target costing has a history of more than 40 years in the Japanese industry. In 1959, Toyota developed the preliminary target costing approach. Although many manufacturers in Japan use target costing, the system used at Toyota Motor Corporation is the oldest and considered by many the most technically advanced. While the idea of systematic cost reduction had existed at Toyota since it was founded, the process was first codified in the mid-1960s, when the firm set itself the objective of producing a $1,000 car (Cooper, 2002). Most managements in the United States and the world, however, do not know enough about target costing to understand its importance and often underestimate the power of target costing as a serious competitive tool. When general managers read the world 'costing' they naturally assume it is a topic for their finance or accounting staff. They misunderestimate that target costing is really a systematic profit and cost management process. This article begins with the role management accounting, definition of target costing and an overview of the target costing process. It than describes the steps that are necessary to implement target costing.