Cost Reduction Effect Research Articles

Trade cost reduction, subcontracting and unionised wage

We show the effects of trade cost reduction in the presence of a domestic firm's strategic output allocation between formal in-house production and subcontracting to the informal sector. Considering a one-way trade, we show that trade cost reduction increases the in-house unionised wage, in-house employment, union utility, the formal–informal wage gap and consumer surplus, it reduces informal production and the profit of the domestic firm, and it creates an ambiguous effect on welfare. Whether trade cost reduction increases the income gap between the domestic producer and the labour union is ambiguous, and depends on the trade cost and the cost of subcontracting. Considering a two-way trade with symmetric segmented markets, we show that a symmetric trade cost reduction reduces the domestic unionised wage, domestic in-house employment, union utility, it increases informal production, consumer surplus and it creates ambiguous effects of the profits.

TCO 접근방법을 통한 정부클라우드 SaaS 서비스 전환의 타당성에 관한 연구

It is well known that SaaS(Software as a Service) changeover gives several advantages to organization. One of the advantages is the cost reduction effect of IT resources as well as IT human resources. Another one is the curtailment of software development workload in the field of informatization promotions. Nonetheless, it is hard to find comparison cases regarding the quantitative measurement of the introduction of SaaS before and after. Accordingly, when the Government IDC tries to adopt SaaS, it absolutely needs the empirical study whether SaaS is cost-effectiveness or not. In this study, we focus on variation in the Government administration common tasks, processes and labor costs. Using the Man-Month(MM) estimation methods, We verify that how much TCO(Total Cost of Ownership) is reduced per year.

Extended Producer Responsibility for E‐Waste: Individual or Collective Producer Responsibility?

We investigate the implications of collective and individual producer responsibility ( CPR and IPR, respectively) models of product take‐back laws for e‐waste on manufacturers’ design for product recovery (DfR) choices and profits, and on consumer surplus in the presence of product competition. We show that IPR offers superior DfR incentives as compared to CPR, and provides a level competitive ground. CPR may distort competition and allow free‐riding on DfR efforts to reduce product recovery costs. Thus, manufacturer preferences for IPR or CPR may differ because of the free‐riding implications under CPR, with even high‐end manufacturers having incentives to free‐ride under certain competitive conditions. The policy choice between IPR and CPR is not clear cut from an economic welfare perspective. This choice involves a comparison between the effects of superior recovery cost reduction through improved DfR under IPR and the operational cost‐efficiency under CPR.

Critical success factors of strategic cost reduction

Cost reduction is usually confronted with conflicts and resistance. Besides planning and controlling measures the management accounting literature discusses behavioral and organizational factors (e.g., top management commitment, participation, cost culture) in order to overcome this resistance. Thus, from a theoretical perspective different concepts exist for implementing an effective long-term cost reduction. However, only little empirical research can be found that investigates the relative importance of “soft” behavioral and implementation factors compared to general planning and control measures. This study examines the role of behavioral and organizational (“soft”) factors in comparison to planning and control (“hard”) factors in cost reduction projects. Target costing or activity-based costing projects represent examples for strategic cost reduction projects which are considered in this study. The sample comprises 131 chief management accountants of medium-size and large German companies which were involved in such strategic cost reduction projects. Structural equation modeling is used for deriving the results. The results show that cost culture, top management commitment, and participation are of particular importance for the success of cost reductions. Their influence drives significantly planning and controlling measures which in turn determine the effectiveness of cost reduction measures.

The frequency and cost comparison of haloperidol prescriptions – haloperidol data analysis from therapeutic drug monitoring 2006–2011

Introduction: The use of less expensive medications does not always coincide with a cost effective therapy. Therefore, an effective cost reduction depends not only in reducing the price of the medication, but also in reducing the frequency of prescriptions due to inappropriate treatment. The importance of haloperidol therapeutic drug monitoring lies in the actuation of an Effective-Cost-Therapy for the health enhancement of individual patients. Materials and Method: Specification of haloperidol major indications and price were derived from the information given in the Rote Liste (2006–2011) by Janssen Pharmaceuticals, Inc. The major indications which were considered during the calculations were grouped according to their dosages. The mean of the lowest and the highest prices were multiplied with the number of prescriptions each year, which resulted in the total yearly average expenditures. Results: There was an insignificant decline in the frequency of prescription between 2007 (62) and 2008 (60). 39 haloperidol prescriptions were documented in 2006. 29.01% of the price was calculated by the therapy of maniform syndrome. Between the year 2010 and 2011, there was a price reduction at 9.69%. This reduction however, resulted in only 2.65% prescription price decrease. The least price at 4.47% was registered by the year 2006 and the highest price at 17.12% was documented by 2010. Conclusion: The haloperidol maintenance dosage differs according to different respective indications such as maniform syndrome, acute and chronic psychosis and psychomotor agitation. This work shows the importance of considering specified indications while executing a cost-management project on haloperidol.

Cutting costs of catching carbon—Intertemporal effects under imperfect climate policy

We use a two-period model to investigate intertemporal effects of cost reductions in climate change mitigation technologies for the power sector. The effect of cost reductions for CCS depends on how carbon taxes are set. If there is no carbon tax in period 1, but an optimally set carbon tax in period 2, a CCS cost reduction may reduce early emissions. Such an innovation may therefore be more desirable than comparable cost cuts related to renewable energy. The finding rests on the incentives fossil fuel owners face. If future profitability is reduced, they speed up extraction (the ‘green paradox’), and vice versa.

DB운영 데이터 분석을 통한 G2B 시스템 평가 사례

The G2B system is one of the important information systems in the e-government implementation. It is difficult to measure the cost reduction effect of the system introduction because there are many participants in the complex procurement processes. Previous approaches of the performance evaluation of such processes have been based on conducting some surveys and interviews with statistical methods. Therefore there have been some limitations in the verification of feasibility. Therefore this study tries to suggest a case of performance evaluation about the cost reduction in using of the G2B system by analyzing operational DB data from the G2B system. This study analyzed the procurement processes of G2B system according to `goods` and `facilities/services` and classified the procurement processes into 12 sub-processes. By developing an evaluation model for the cost reduction of e-procurement, we derived the whole cost reduction effect was 8,000 billon Won for the use of Korea KONEPS G2B system in 2008. Specially the cost reduction in the private sector was 6,600 billion Won. It was mainly due to the decrease of the offline visits to the related organizations to participate a bidding process. Moreover, the cost reduction of using shopping mall was 1,000 billion Won among the total 1,400 billion Won in the whole public sector. The main contribution of this paper is to show the more objective evaluation result of the use of e-procurement, which verifies the necessity of G2B system.

Sentinel node biopsy in melanoma patients: The role of day surgery and local anaesthetic approach for quality-of-life and effective cost reduction.

e19002 Background: Sentinel node biopsy (SNB) is used in the management of melanoma patients without nodal metastases. Methods: From January 1, 1998 to December 31, 2011 we performed 182 SNBs at St. M. Goretti Hospital. Patients presented a primary melanoma, Breslow thickness equal to or higher than 1 mm, lower than 1 mm with regression and/or ulceration, and/or IV-V Clark level, and/or mitotic rate ≥ 1/mm2, according to the 7th edition melanoma staging system. All patients underwent pre-operative lymphoscintigraphy with intradermal injection of 50-70 MBq 99 mTc colloidal albumina particles, 50-80 nm size range, in 0.1-0.2 ml saline solution. We never used blue dye. All patients underwent surgical treatment 4-12 h. later. We performed SNB in day-surgery (DS) under local anaesthesia (LA). Surgery incision was 3-4 cm. This study was approved by an ethics committee, discussed with all patients and informed consent was obtained. Purpose of the study is to investigate the validity of this approach for quality of life and cost reduction. Results: 165 patients underwent SNB, 64 (38.7%) in the inguinal region, 83 (50.3%) in axilla, 1 (0.6%) in the popliteal region, 4 (2.4%) patients showed inguinal bilateral sentinel lymph-node (SLN), 6 (3.6%) axillary bilateral SLN, 4 (2.4%) axillary and 3 (1.8%) inguinal double SLN. The SLN identification rate was 100%. After surgery we distributed a questionnaire to the patients about the acceptability of this approach. In 32 patients SLN was positive. In these patients we performed radical lymphoadenectomy, 12 (37.5%) inguinal and 20 (62.5%) axillary. Conclusions: The results achieved are extremely accurate. This procedure is safe, well accepted by patients (98%), reported better quality of life. The oncological results are absolutely reliable. As regards hospital logistics, operations in DS and LA can be easily managed, leading to a significant cost reduction, 42.15% less expensive than the same operation performed under general anaesthesia.

518 Sentinel Lymph Node Biopsy in Breast Cancer: the Approach in Day Surgery Under Local Anaesthesia for Quality-of-life and Effective Cost Reduction

518 Sentinel Lymph Node Biopsy in Breast Cancer: the Approach in Day Surgery Under Local Anaesthesia for Quality-of-life and Effective Cost Reduction

Environmentally friendly application of hydrides to nuclear reactor cores

As new environmentally friendly techniques, hydride materials have been proposed to be introduced to fast reactor (FR) cores in this paper. Hydrogen atoms in metal hydride can efficiently moderate fast neutrons. Based on this fact, some metal hydrides have been investigated for their potential environmentally friendly application as nuclear materials to be used in FR cores. Two types of utilisation of metal hydrides in FR cores are discussed in this paper. One is the application of hafnium hydride as neutron absorber in FR cores. The core design has been carried out to examine its characteristics as well as to evaluate the cost reduction effect. Demonstration of the fabrication of hydride pins has been performed using hydride pellets and stainless steel claddings. The coating technique of the inner cladding surface has also been developed to reduce the permeation of hydrogen through the stainless steel cladding. The physical and chemical properties of the pellet have been measured for the purpose of designing a hafnium hydride pin. Irradiation test of the hydride pins has been performed in the experimental FR, JOYO, Japan Atomic Energy Agency. The other application is the utilisation as a transmutation target of long lived nuclear wastes. Hydride fuel containing 237Np, 241Am and 243Am has been studied for a candidate transmutation target to be used to reduce the radioactivity of long lived nuclides contained in the nuclear wastes, which are obtained after reprocessing spent fuels.

Effect of Diagnosis on Variability of ICU Patients in Insulin Sensitivity

Abstract Tight glycemic control (TGC) in intensive care unit (ICU) patients represents an active research field as it has been proved its mortality and cost reduction effects. Previous works demonstrated that insulin sensitivity plays an important role in this question. The paper investigates by two defined metrics patient's variability in insulin sensitivity based on a previously introduced (ICING) glucose-insulin model. These metrics grasp the deviations of the actual insulin sensitivity data from their predictions; hence, characterizing a patient's variability at a given time. We also introduce and examine a way to characterize variability across longer time periods and across different patients. Investigations are applied to an actual longitudinal database consisting of n = 261 patients with 47,836 hours of measurement in total, with patients grouped according to diagnosis groups formed from their Apache III codes. Data was also segregated according to time spent in ICU (in days). Kruskal–Wallis-test was then employed (separately for different days) to assess whether patients in different diagnosis groups exhibit significantly different variability. Differences were further analyzed with Tukey HSD post-hoc testing. Results show that insulin sensitivity decreases with time and that differences between diagnosis groups diminish. However, there are significant differences on the first two days of stay in the ICU according to one of the metrics, with cardiac patients being more variable and gastric patients (especially non-operative ones) being less variable.

Strategic procurement through build to order system: an analysis of Japanese auto-manufacturers

Although strategic procurement has been approached in micro- or macro-purchasing perspective, it has rarely been examined from integration of customer requirements into manufacturing processes through effective insourcing and outsourcing practises. Effective cost reduction in manufacturing firms involves all the component parts. Thus, strategic procurement requires long-term manufacturing process planning based on responsive customer information systems and supplier integration for strategic procurement. This study focuses strategic procurement practises of Nissan, Toyota and Honda companies through their build to order system. Strategic procurement in particular utilises integration of customer information with all aspects of monozukuri. The key is to achieve short turnover time. Paradoxically, such short turnover time requires long-term production planning. In this paper, we also compare Nissan Production Way (NPW) with BTO of Toyota and Honda Motor Company. Theoretical and managerial implications are d...

Development of Dynamic Ankle Foot Orthosis for Therapeutic Application

In a population of aging with low birth rate, many elderly become bedridden because of their suffering from injuries or diseases that require a long period to heal and rehab. We developed the lowest cost of production while provides the highest performance and reliable prototype. The selective 27 parts were identified and used in this project including the cabling assembly for wiring. The other selective 14 parts are using other polymer materials such Acrylontrile Butadine Styrene (ABS) and Polypropylene. The alpha prototype was produced using FDM (Fuse Deposition Modeling). The model is fabricated by using real scale of (1:1) for the chosen conceptual design. Engineering drawing is the last process in design stage, where the final prototype must be verified as according to requirement and the related problem rise have been solved. The effective cost reduction newly designed DAFO is presented in this study. The functional test was conducted in the laboratory and based on human testify. The performance was good even though the prototype using rapid prototype materials. The controller board also functions as it programmed. The DC motor was performed a job based on signal provide by two (2) limit switch at the bottom part of lower foot. As a conclusion, The development of cost-effective new mechanism of dynamic ankle-foot orthosis was successfully fabricated in this current study. Further evaluation need to be tested accordingly prior to use as important device in rehabilitation therapy.

Cost reductions for offshore wind power: Exploring the balance between scaling, learning and R&D

Offshore wind electricity generation is prospected to increase substantially in the near future at a number of locations, like in the Baltic, Irish and North Sea, and emerge at several others. The global growth of offshore wind technology is likely to be accompanied by reductions in wind park construction costs, both as a result of scaling and learning effects. Since 2005, however, significant cost increases have been observed. A recent surge in commodity prices proves to constitute one of the main drivers of these cost increases. This observation begs the question whether wind turbine manufacturers should return to the laboratory for undertaking R&D that explores the use of alternative materials and bring offshore wind energy closer to competitiveness. It is demonstrated that if one abstracts from material price fluctuations, in particular for metals such as copper and steel, turbine production plus installation cost data publicly available for a series of offshore wind park projects (realized in several European countries since the 1990’s) show a cost reduction trend. Hence various other sources of cost increases, such as due to the progressively larger distances from the shore (and correspondingly greater depths at sea) at which wind parks have been (and will be) built, are outshadowed by cost reduction effects. When one expresses the overall cost development for offshore wind energy capacity as an experience curve, a learning rate is found of 3%, which reflects a mixture of economies-of-scale and learning-by-doing mechanisms. Also the impact is quantified on offshore wind power construction costs from the recent tightness in the market for turbine manufacturing and installation services: without the demand-supply response inertia at the origin of this tightness it is estimated that the learning rate would be 5%. Since these learning rates are relatively low – in comparison to those observed for other technologies, and in view of the high current capacity costs of offshore wind in comparison to onshore wind energy – a renewed focus on learning-by-searching or R&D is recommended.

Housing in the Welfare State: Rethinking the Conceptual Foundations of Comparative Housing Policy Analysis

Many scholars interpret the contraction in social housing and the expansion of home ownership as reflections of a reduced role for the state and an increase in the marketisation of housing. This paper challenges this interpretation by pointing to two weaknesses in its conceptual underpinnings. One is its failure to distinguish between housing as capital (traded in the purchase market for dwellings) and housing as a service (traded in the rental market for accommodation), leading to an underestimate of the extent and diversity of continuing state intervention in housing. The other problem is a narrow focus on the balance between market and state which neglects the role of self-provisioning in the household as a form of production. The alternative view proposed here is, first, that forms of state intervention in the markets for housing capital and services are so diverse and complex that a more comprehensive analysis is needed before conclusions on trends in the state's overall role can be reached, and, second, that while home ownership reflects a dominant role for the market in the distribution of housing capital, it reflects a familialisation of housing services – it enables households to self-provision themselves with accommodation and thereby remove this service from the realm of both market exchange and state provision. The paper also suggests that the welfare benefit of home ownership lies not only in its widely recognised social insurance effect but also in the efficiency and cost-reduction effects which self-provisioning of housing provides.

RJV FORMATION AND STRATEGIC ENTRY ACCOMMODATION*

This article examines the relationship between cost reduction and public goods effect of research joint ventures (RJVs) and strategic entry deterrence. R&D is process innovation al aKamien, Muller and Zang (1992) and R&D cost sharing between the incumbent and the entrant in a RJV can be asymmetric per Long and Soubeyran (2002). It is found that conforming with the conventional wisdom, the incumbents prefer to form RJV to deter entry when the entrant is very inefficient. However, if the entrant is moderately inefficient, it is a better choice for the incumbent to accommodate entry by forming a RJV with it. In contrast, if the entrant is very efficient, then the equilibrium RJV structure depends on the magnitude of spillover effect: it is better to deter entry in the case of high spillover effect.

Input-Output Analysis Of The Effect Of Education And Research ON The Korean Economic Structure

<span>The purpose of this paper is to study the effect of economic policy such as subsidy or tax reduction by the government on education and research activities. The data to be utilized are the input-output tables reported by the Bank of Korea for 1980 and 1990. Using an input-output table, we found a growing effect of education cost reduction on economic development. Unlike the traditional analysis by Leontief, input substitution is possible in the model we have used in this paper. As a result, we could predict the economys response to cost variation. A surfeit of fervent passion on education among Koreans has been criticized as the source of a negative effect on the economy. However, the structural capability to accept these highly education human resources must have grown for the past ten years. From the evidence of this trend, we can deduce a positive effect of education and research on the economy in the future.</span>

Development of a market penetration forecasting model for Hydrogen Fuel Cell Vehicles considering infrastructure and cost reduction effects

In order to cope with climate change, the development and deployment of Hydrogen Fuel Cell Vehicles (HFCVs) is becoming more important. In this study, we developed a forecasting model for HFCVs based on the generalized Bass diffusion model and a simulation model using system dynamics. Through the developed model, we could forecast that the saturation of HFCVs in Korea can be moved up 12 years compared with the US. A sensitivity analysis on external variables such as price reduction rates of HFCVs and number of hydrogen refueling stations is also conducted. The results of this study can give insights on the effects of external variables on the market penetration of HFCVs, and the developed model can also be applied to other studies in analyzing the diffusion effects of HFCVs.

Market Integration and Competition in Environmental and Trade Policies

Recent empirics suggest the relevance of transport cost reductions for world trade growth along with eliminations in protectionist trade barriers. To address the welfare effects of trade cost reductions in a context of ‘trade and the environment,’ we develop a two-stage game model where governments choose environmental and trade policies and firms play a Cournot-Nash game. We show that reductions in transport costs lead to lower emission taxes and higher tariffs. And, we find that the degree of pollution damage plays a central role in whether market integration is welfare-improving relative to autarky.

HOME OFFICE COMO INSTRUMENTO DE REDUÇÃO DE CUSTOS: UM ESTUDO DE CASO REALIZADO NA EMPRESA DE LOGÍSTICA CARGO COMPANY –RECIFE/PE

O artigo tem como objetivo analisar os efeitos decorrentes da redução dos custos através da implantação do modelo Home Office na empresa Cargo Company. A metodologia aplicada na pesquisa tem como base duas etapas: na primeira etapa utilizou-se a técnica de entrevista com a direção e gestores da empresa, onde se coletou as variáveis qualitativas. Na segunda etapa aplicou-se um questionário semi-estruturado, onde simultaneamente foram disponibilizados relatórios de desempenho com indicadores antes e depois da crise, ou seja, nesta fase se obteve dados quantitativos. É caracterizada como estudo de caso e foi realizada numa empresa de logística intermodal. Para respaldar a conclusão foi utilizado o método de análise de conteúdo e análise estrutural, com vistas a verificar os resultados da implantação do Home Office na redução dos custos. Foram utilizados dados das demonstrações contábeis, os quais foram analisados vertical e horizontalmente. A importância da realização do estudo dá-se em função da gestão inovadora incorporada pela empresa ao adotar o conceito Home Office como instrumento de redução de custos.