Cost Reduction Effort Research Articles

Sequential use of the triangle, 2-AC, 2-AFC, and same-different methods applied to a cost-reduction effort: consumer learning acquired throughout testing and influence on preference judgements

Taste discrimination and preference of loyal, heavy users of a popular fruit beverage were measured to support a cost reduction effort. The research objective was to determine the highest reduction level permissible without effecting a noticeable perceptual difference among heavy users of the beverage. Judgements of an internal employee panel were considered for predictions of loyal, heavy-user consumer response. Heavy users were defined as individuals who consumed the beverage at least once a week or more. Internal panel 2-AFC and consumer triangle, 2-AC, 2-AFC, and same-different discrimination results collected using the sip methodology were compared using d′ — a measure of the degree of sensory difference to: (1) support the cost reduction effort; (2) study the relationship between scale methods; and (3) examine and establish the relationship between internal and external consumer sip test results. Results of these combined studies showed that while the ingredient reduction was perceived as different even at the lowest levels of reduction and delivered negative implications at 100% reduction, a mid-reduction level was successful in satisfying consumer preference. In light of these findings, the action-decision criteria for moving forward with the cost-reduction reformulation was modified from ‘no perceivable difference’ to ‘parity or superior preference’. Results of these studies led to a successful cost-reduction of the beverage.

On the distribution of control functions in new-generation on-board embedded real-time systems

The opening of the space business to the commercial market causes the cost and criticality of the on-board system to shift towards the payload component that delivers the value-added of the mission. As the cost of the payload increases, every effort is made to reduce the cost of the other elements of the spacecraft. The integration of the traditional on-board real-time control functions into a single platform component, denominated 'spacecraft bus', is one of the main effects of this cost-reduction effort. The new scenario is likely to require the allocation of additional real-time control functions to payload components. The immediate consequence of this phenomenon is the distribution of on-board services across the spacecraft. In earlier work we have presented an engineering approach to the construction of the real-time software embedded on-board integrated platform components. In this paper, we extend that approach to address the future scenario in which real-time control functions may be distributed across multiple processing nodes in the system.

Organizational Context: The Key to Implementing Successful Cost-Reduction Strategies

Having spent the last two-and-a-half years as a member of the Senior Leadership Team for a 13hospital health system aggressively downsizing, reengineering, and restructuring, I was not certain I could plod through an article on these subjects. I was surprised, however, perhaps because I was in the mood for a heavy dose of introspection regarding our experience-that is, a discussion of what worked, what did not work, and why. Or, perhaps the article teased me with the prospect of new insights into the role of in implementing cost reduction strategies. I am convinced that this soft side-the art of management-is as important, if not more so, than technical management strategies and tools used successfully to implement and sustain results from any cost-reduction effort. Downsizing, Reengineering, and Restructuring: Long-Term Implications for Healthcare Organizations spent very little time attempting to build a case for our industry to be concerned about cost reduction. The healthcare environment is changing dramatically. And our delivery system must also change dramatically. Issues associated with managed care (i.e., increased emphasis on communitybased care, excess capacity in traditional hospital facilities, shrinking margins, hospital closures, mergers and consolidations, etc.) clearly point to a need for proactively managing our destinies. The article focused on three core areas: 1. definition and description of various cost-reduction strategies; 2. consequences of these strategies on organizational performance: cost quality employee satisfaction customer satisfaction; and 3. implications of organizational context (i.e., culture, trust, and leadership) relative to the change process and shortand long-term outcomes of cost-cutting strategies. Much of this article is devoted to defining three cost-reduction strategies, discussing circumstances for appropriate use, and listing various tactical options available to management. This is useful because these three strategies-at least in my world-are frequently misused and confused. As the article notes, fundamental to the ultimate success or failure of any of these strategies, stakeholders affected by and responsible for the change process must have a clear understanding of the need for change, the process, and their role in the process. If these issues are not incorporated into the impact and outcome analysis of the planning process, initial and sustained positive results from any strategy employed will result more from luck than skill. This article further notes that the relative effectiveness of each of these three strategies is controversial and difficult to document. Research presented shows that only one-half of the companies employing downsizing strategies achieve and sustain reduced cost objectives. Fewer than one-fourth improved productivity. Four out of five reengineering efforts were unsuccessful by any measure. This unimpressive track record should give pause to all who contemplate initiating any of these strategies for their own organizations. Authors cited research that offers observations regarding success and failure that must be considered carefully when planning cost-reduction initiatives. The authors cited Nohria and Love 11996), which showed downsizing to be effective only when the scope of change extended beyond cutting costs to organizational redesign and when downsizing was timed to coincide with the poor fit between organizational resources and the environment (i.e., there was a real, well-defined, well-communicated, and well-understood reason for change). Several references cited research that stressed the importance of including comprehensive strategic impact analysis in the planning process. Such analysis should compare expected outcomes following implementation and should include issues such as the real cost of change and the costs of not changing. …

Pattern Modification by Injection-Well Shut-ln: A Combined Cost-Reduction and Sweep-Improvement Effort

Summary The Rangely Weber Sand Unit is a mature giant oil field that is currently under tertiary recovery with CO2. The Rangely oil field has been developed in stages, as have most large oil fields. This staged development over 50 years has had a significant impact on the distribution of remaining movable oil. Simulation studies indicated that oil cut could be improved if injection patterns were modified by shutting in injection wells to take advantage of relative well maturity. A field pilot project based on these studies has yielded results that indicate improved economic performance because of lower operating costs related to improved oil cut and reduced well maintenance.