Cost Reduction Effect Research Articles

Cost Analysis for a Hybrid Advanced Metering Infrastructure in Korea

Advanced metering infrastructure (AMI) refers to the electricity service infrastructure between electricity consumers and suppliers and is technically essential for the realization of a smart grid environment. To implement AMI, various communications technologies are being used based on the application environment according to the utility. However, using a single communications method can give rise to attenuation in the downtown underground distribution line section or cause higher supply costs due to decreased density in the range from farming to fishing areas. A hybrid AMI is one solution to this problem. According to an economic analysis of previous AMI deployment, the cost to install a communications network accounts on average for 45% of the total cost. Since the installation cost of a communications network is influenced by the density of the installation environment, a hybrid AMI, which allows the configuration of a flexible network using both wired and wireless communications, can be a good alternative, both technically and financially. This study conducted a simulation based on density of the installation environment and configuration of the communications network to analyze the economic effect of installing a hybrid AMI communications network. It assumed that a hybrid AMI was deployed in an overhead distribution line in a low-density area. The simulation outcomes were compared and analyzed against the power line communication (PLC)-only AMI method. The results showed that the hybrid AMI method had a 10% communications network cost reduction effect compared to the PLC-only AMI method. In addition, the analysis indicated that there was a maximum 19% cost reduction effect in communications network installation depending on the method of network installation, suggesting that the hybrid AMI was economically more effective than the PLC-only AMI method.

Examining the relationship between municipal consolidation and cost reduction: an instrumental variable approach

ABSTRACTThis study explores the cost-reduction effects of local government consolidation, using data from Japanese municipalities. We use municipal panel data from Japan for the years 2000, 2005 and 2010, a data set including numerous consolidation cases. Reverse causality between consolidation decisions and size of municipal expenditure is a concern in the voluntary consolidation of local governments. An instrumental variable (IV) methodology is employed to deal with possible endogeneity associated with consolidation decisions. The main finding is that municipal current expenditure per capita increases immediately after consolidation, but then gradually declines. Because consolidation seems to increase per capita expenditure in the absence of the effect of this long-term declining trend, incorporating this trend into estimation is crucial in cost-efficiency analysis of consolidation. It is also shown that conventional panel data regressions yield biased consolidation effects, suggesting the superiority of the IV approach.

Technical, Economic, and Environmental Assessment of PEFC Power Generation System Using Surplus Hydrogen Produced From an Oil Refinery

The potential of an energy system that comprises hydrogen-fueled polymer electrolyte fuel cells (PEFCs), a steam reformer, and a hydrogen storage tank, using surplus hydrogen produced from an oil refinery, was evaluated using a mathematical model based on linear programming. The aim of this study was to optimize the capacity of the hydrogen-fueled PEFC, the hydrogen production of the steam reformer, and the utilization amount of the hydrogen storage tank in order to minimize the total system cost. Based on the optimization results, the system cost reduction and CO2 emission reduction effects were calculated in relation to the power generation efficiency and the installation cost of the hydrogen-fueled PEFC. As a result, the conditions for the hydrogen-fueled PEFC where a system cost reduction could be achieved in the PEFC power generation system, compared with the conventional system, were shown to be an initial cost lower than 3000 $/kW for a power generation efficiency of 50% or an initial cost lower than 5000 $/kW for a power generation efficiency of 65%.

Heterogeneous effects of trade liberalisation on firm‐level markups: Evidence from China

AbstractThis paper analyses how trade liberalisation affects the markups of Chinese firms based on firm‐level production data, highly disaggregated transaction‐level product trade data and tariff data at the eight‐digit Harmonised System (HS) level. Our results show that there is a pro‐competition effect of output tariff reduction, that is decreasing output tariffs relate to a lower markup, and that there is a cost‐reduction effect of input tariff reduction, that is decreasing input tariffs relate to a higher markup. Interestingly, there are heterogeneous effects of trade liberalisation on firm‐level markups. The cost‐reduction effect of input tariff reduction is partially offset by the competition effect of new firm entry in more‐concentrated industries. Furthermore, there is a weaker effect of trade liberalisation on processing trade firms and state‐owned enterprises. Finally, our results are robust to the use of an instrumental variable approach to control for the endogeneity of tariffs and sample selection.

消融雪施設整備の現状と課題 －コスト縮減時代の整備・維持管理の取組み－

消融雪施設整備の現状と課題 －コスト縮減時代の整備・維持管理の取組み－

Are bilateral and multilateral aid‐for‐trade complementary?

AbstractUsing the first comprehensive estimates of ad valorem tariff equivalent bilateral trade costs spanning the time period 2002–10, we examine whether the aid‐for‐trade (AFT) inflows reduce bilateral trade costs facing aid recipients. If so, we ask whether the trade costs reduction effects of AFT from bilateral and multilateral sources are complementary. By showing the extent to which the observed trade cost reduction effects of AFT from bilateral (multilateral) sources correlate with the magnitudes of AFT disbursements from multilateral (bilateral) sources, we present plausible explanation for the cross‐country variations in the extent to which AFT promotes trade flows. Our findings have, thus, important policy implications for shaping future discourses on the coordination of disbursements for enhancing the effectiveness of AFT.

Revisiting the existing notion of continuous improvement (Kaizen): literature review and field research of Toyota from a perspective of innovation

Continuous improvement (Kaizen) has been identified as a crucial factor for strengthening firms’ competitiveness in the automotive industry as well as others, and many scholars view it as detailed below. In the existing literature, from a perspective of innovation, Kaizen has often been conceived of as an accumulation of similarly small, mutually independent, incremental process innovations that are conducted by workers, work-teams, and their leaders. However, few empirical case studies examine the relevance of this conventional notion of Kaizen. Do Kaizen activities contribute only to similarly small, incremental process innovations? Does Kaizen only consist of various mutually independent innovations? Is Kaizen always achieved by workers and work-teams rather than by engineers? This paper attempts to observe those continuous improvements conducted in a certain factory for a certain period. Through longitudinal observations, this paper shows via seven case studies that (1) Kaizen consists of a series of innovations with various scales and that these scales could also be estimated by the “scope of coordination” in addition to existing scale indicators, such as the investment amount, and outcomes, such as the cost reduction effect. Additionally, (2) Kaizen sometimes induces small changes in product design and affects organizational activities of production design as a small-scale product innovation. Furthermore, (3) Kaizen activities sometimes influence other Kaizen activities. With regard to these characteristics of Kaizen, this paper implies that (4) Kaizen management needs organizational design. For example, in Toyota’s case, not only work-teams but also product/process design engineers contribute to Kaizen, and shop-floor engineers play a vital role in coordinating between shop-floors and engineering departments on the basis of the “staff-in-line structure” of organizations.

The Main Directions of Cost Reduction and Increasing Effectiveness in Cotton Production

Increasing efficiency by reducing costs plays an important role in agricultural production. In particular, to increase profit through reducing the cost of cotton is very important to raise productivity. Therefore, it is necessary to learn and study of the issues of increasing cotton production and effective cost reduction in the modernizing economic conditions of the agriculture especially, in the cotton sector. Reducing production costs and product net cost reduction is one of the most important requirements the of market system. The development of production, the level of its organization, the technical development and technology is closely connected to reducing the production cost. The net cost of product reflects the company’s economic stability and the ability to operate in any form of property.

Construction Innovation of Building Complex in Maritime Service Agglomeration Area—Case Study of Shanghai

Agglomeration and building complexes are two mainstreams in modern urban development, planning and construction. The combination of agglomeration theory and building complex theory is proved to be feasible and useful through function analysis of Shanghai Maritime Service Agglomeration (SMSA) area. The findings point out that construction innovation of building complexes should comply with the integral demand of talents, companies and government. In addition to external scale effect, cost reduction, talents attraction and other agglomeration effects, function innovation of SMSA is analyzed and investment is made in four main aspects as comprehensive maritime services, resource & energy saving, environment-friendly & green transformation and environment adaptive yacht harbor operation. The assessment and discussion on the construction project witnessed a great success that social and economic benefits are abundant. The experience of SMSA is summed up to provide theoretical and practical reference for the construction of other building complexes and agglomeration areas.

フライアッシュを結合材として用いたコンクリートのLCC の試算

Objective. Since 2011 great East Japan Earthquake, operating ratio of coal-fired power generation has been increasing and the amount of emission of fly-ash which is by-product of operation also has been increasing. Therefore, recycling of fly-ash needs to be accelerated to consider the environmental responsibility. Fly-ash is used as a supplementary cementitious material in the production of cement concrete. A well-proportioned fly ash concrete mixture will have improved workability of fresh concrete and long term strength and mass transfer resistance of hardened concrete when compared with a normal cement concrete. Currently, some concrete plant has been shipping fly-ash concrete positively in Shikoku Island in Japan and giving satisfactory results of shipping. In future, informing the effect of concrete quality improving effect and Life Cycle Cost (LCC) reduction effect due to quality improvement of usage of fly-ash. This research aims on developing life cycle model of infrastructure used concrete used fly-ash as binder and calculating LCC for investigating the effect of LCC reduction of fly-ash used concrete.Results and Conclusions. In the study of chloride damaged road bridge and caisson constructed by steel reinforced concrete, LCC of fly-ash used concrete calculated higher than normal concrete, though LCC per year of fly-ash used concrete is much lower than normal concrete due the life time of fly-ash concrete estimates much longer than normal concrete. In the study of carbonation effected road bridge constructed by steel reinforced concrete, life time of both structures are the same, therefore both LCC and LCC per year is the most lowest in case of normal concrete due the materials cost of fly-ash used concrete is more expansive than normal concrete. Therefore, fly-ash using for concrete to reduce LCC of infrastructure is effective for chloride damaged structures or combined carbonation and chloride damaged structure.

Dependence of Low-carbon Effect and Energy Cost Reduction Effect of Plug-in Hybrid Vehicles on Distance Traveled

Dependence of Low-carbon Effect and Energy Cost Reduction Effect of Plug-in Hybrid Vehicles on Distance Traveled

Ratooning pigeonpea in maize-pigeonpea intercropping: Productivity and seed cost reduction in eastern Tanzania

Smallholder farmers frequently suffer limited resources and cannot afford to buy improved seeds every season resulting in poor crop establishment. Strategies are needed to reduce costs of crop establishment while maintaining or improving productivity. The objective of this study was to assess the viability of ratooning pigeonpea in maize (Zea mays L.)—pigeonpea (Cajanus cajan (L.) Millsp.) intercropping over four cropping seasons (2012–2015) at Ilonga Research Institute, eastern Tanzania. Two major factors were considered: cropping system (intercropping vs. sole cropping) and tillage (conventional tillage vs. no-tillage), while ratooning (cutting pigeonpea at 30cm and 60cm above ground) was a minor factor. Total grain yields of all intercropped maize and pigeonpea were significantly higher than those of maize and legume in the corresponding sole crop treatments showing a high complementarity between maize and pigeonpea crops. All the intercrop treatments had LER values greater than 1, even in situations where component crop yields were small. Results suggested that a ratooning height of 30cm allowed large maize yields whereas a height of 60cm allowed larger pigeonpea yields, and the choice of ratooning height might depend on the farmer’s objective per season. The tillage system had no significant effect on crop yield. The hypothesis that ratooning pigeonpea is an effective cost reduction strategy that maintains or increases productivity in maize-pigeonpea intercropping was supported. When ratooning was practiced in the intercrops, the seed cost reduction of 23% per season was recorded. Ratooning in sole pigeonpea entailed a larger seed cost reduction from TZS40, 000.00 to TZS13, 333.00 (1US$=TZS2, 000.00) per season representing a reduction of 67%. The cost reduction due to ratooning was significant as generally less than 10% of the smallholder farmers are able to purchase significant quantities of seed. The prevailing cropping systems and general farmers’ resource endowment in eastern Tanzania coupled with the fragmented seed systems especially for legumes provide a greater scope for the wide scale practice of ratooning pigeonpea in maize-pigeonpea intercropping, reducing seed costs while maintaining productivity.

Scheduling Independent Partitions in Integrated Modular Avionics Systems.

Recently the integrated modular avionics (IMA) architecture has been widely adopted by the avionics industry due to its strong partition mechanism. Although the IMA architecture can achieve effective cost reduction and reliability enhancement in the development of avionics systems, it results in a complex allocation and scheduling problem. All partitions in an IMA system should be integrated together according to a proper schedule such that their deadlines will be met even under the worst case situations. In order to help provide a proper scheduling table for all partitions in IMA systems, we study the schedulability of independent partitions on a multiprocessor platform in this paper. We firstly present an exact formulation to calculate the maximum scaling factor and determine whether all partitions are schedulable on a limited number of processors. Then with a Game Theory analogy, we design an approximation algorithm to solve the scheduling problem of partitions, by allowing each partition to optimize its own schedule according to the allocations of the others. Finally, simulation experiments are conducted to show the efficiency and reliability of the approach proposed in terms of time consumption and acceptance ratio.

Technological assessment of PEFC power generation system using by-product hydrogen produced from a caustic soda plant

The potential of an energy system that comprises a hydrogen-fueled PEFC (H2-PEFC), a boiler, and a gas turbine combined heat and power system (GT), using by-product hydrogen produced from a caustic soda plant was evaluated using a mathematical model based on linear programming. Based on the optimization results to minimize the system cost by optimizing the equipment capacity and energy balance of the energy system, the system cost reduction effect and CO2 reduction effect were calculated in relation to the power generation efficiency and the installation cost of the H2-PEFC. As a result, the conditions for the H2-PEFC where a system cost reduction could be achieved in the PEFC, boiler, and GT system, compared with the boiler system, were clearly shown to be an initial cost lower than 3500 $/kW or a power generation efficiency greater than 50%.

Two-echelon supply chain model with manufacturing quality improvement and setup cost reduction

For quality improvement purposes often times, a manufacturing unit has to change certain parts of equipment. Any such changes in the assembly line manufacturing system or production process involves a cost known as the setup cost. Minimizing the setup cost and improving the product quality is of prime importance in today's competitive business arena. This paper develops the effects of setup cost reduction and quality improvement in a two-echelon supply chain model with deterioration. The objective is to minimize the total cost of the entire supply chain model (SCM) by simultaneously optimizing setup cost, process quality, number of deliveries, and lot size. Numerical examples are provided to illustrate the model.

(Invited) Innovation and Challenges of 3-D NAND Flash Technology

NAND Flash has been improved by increasing the bit cost competitiveness and performance and enlarged its range of applications. Especially this cost reduction and performance improvement let the NAND Flash demand be increasing rapidly in the SSD applications. Needs of the market is demanding a high capacity and high speed of the NAND Flash for the information increase and exchange. Needs of these markets could be satisfied by implementation of a continuous scale down and multi bit. But 2D NAND Flash is not only faced with the difficulty of the scale down in a confined space, showing even marginal situations quality and performance secured in accordance with the scale down. 3D NAND Flash was able to break through the limit of the two-dimensional space by the vertical arrangement of cells in three-dimensional space. In this paper, we look at the critical technical elements for the vertical arrangement of 3D NAND Flash Cell and consider innovation and technology challenges of those elements. 3D NAND Flash meets the demand of the high density memory of the market by increasing the cell number per unit area with the increase of vertical stacks. This paper reviews the necessary stack number to meet the needs of the market and considers increasing the difficulty of the pattern formation increase with the high aspect ratio by increasing the stack height. . It also reviews some attempts to overcome the difficulty of the pattern formation for an effective bit cost reduction. 3D NAND Flash is there a big difference in electrical characteristics of 2D NAND Flash. First, we will compare the difference of the main characteristics of 3D NAND Flash and 2D NAND Flash. And we will look at the changes and challenges of the main electrical characteristics depending on the Stack increase for increased bit Cost reduction.

Performance Evaluation of a Pulse-Doppler Radar with Digital IF Using Modern Technical Computing and CAD Tools

In this paper, we build an approach for radar systems performance evaluation using modern CAD tools. In fact, modern system engineering software environments present many radar models that can be taken as a reflection track. This work tries to follow the radar signal trough the different subsystems of a pulse-Doppler radar, from the waveform generation until the detection probability computation. To give more robustness to this process, the signal flow analysis is accompanied with equation based evaluation. The analyzed system was designed by our team starting from an Agilent SystemVue model whose computations were done by a MATLAB script. In fact, the whole Data Flow (DF) simulation is controlled by this script which gathers all the mathematical analysis which is ‘behind’ the model. Really, this mathematical chain permits the reader to understand the simulation and to predict the results. Progressing in a ‘whole’ process, our approach combines the theory and computation with functional description which gives a sense to the ‘numbers’. In addition, this ‘wholeness’ is reinforced by integrating signal visualization graphics that permit the reader to make a synthetic view on the signal shapes and so, to understand the system operation. This implies the use of software instrumentation within the DF simulator. All these analysis components (functional, mathematical and simulation based) are guided by an evaluation criterion: the detection probability. This work is very useful in all the radar system life cycle steps (design, operation and maintenance) because it contributes to cost reduction and operational effectiveness.

Cost-effectiveness analysis of delayed-release dimethyl-fumarate in the treatment of relapsing-remitting multiple sclerosis in Italy

INTRODUCTION: Disease Modifying Therapies (DMTs) have significantly improved clinical conditions of Relapsing Remitting Multiple Sclerosis (RRMS) patients. However, several unmet needs are still relevant in RRMS. Recently, a new therapy, delayed-release dimethyl-fumarate (DMF; also known as gastro-resistant DMF), has been approved and reimbursed by the Italian Drug Agency (AIFA) for the treatment of RRMS.OBJECTIVE: To compare the cost-effectiveness of DMF vs. pharmacological alternatives indicated for the first-line treatment of RRMS in Italy.METHODS: The analysis was conducted from the perspective of the Italian National Healthcare Service (NHS) and outcomes and costs were evaluated over a 50-year time horizon (equivalent to a lifetime horizon). Both outcomes and costs were discounted at 3.5%. The Markov model estimates the clinical and economic consequences of treating RRMS patients with the following therapeutic options: DMF, interferon (IFN) beta-1a intramuscular (IM); IFN beta-1a subcutaneous (SC) at two different doses, 22 mcg and 44 mcg; IFN beta-1b SC; glatiramer acetate (GA) SC 20 mg; oral teriflunomide. Clinical efficacy data used in this analysis came from an elaboration of the mixed treatment comparison (MTC) already published. According to the Italian NHS perspective, only the following direct costs were considered: pharmacological treatment acquisition, treatment monitoring, relapse management, direct costs associated with disability, adverse event management. Administration costs were assumed equal to €0, because every treatment included in the economic analysis can be self-administered. One-way and probabilistic sensitivity analyses were developed and cost effectiveness acceptability curves generated.RESULTS: In the base-case analysis, DMF was more efficacious than alternatives, in terms of both survival (19.496 vs. 19.297-19.461 discounted LYs, respectively), and QALYs (6.548 vs. 5.172- 6.212 discounted QALYs, respectively). Per-patient lifetime costs with DMF amounted to € 276,500, similarly to the other options. DMF was the drug with the largest effect of disability cost reduction. DMF was dominant vs. IFN beta-1a 44 mcg and cost-effective vs. all other IFNs, GA and teriflunomide, with incremental cost-effectiveness ratio (ICERs) between € 11,272 and € 23,409. All ICER values were lower than the € 50,000 per QALY threshold. One-way sensitivity analysis showed that, for all tested scenarios, ICER of DMF vs. therapeutic alternatives remained favourable (≤ 50.000 €/QALY gained) and the results of probabilistic sensitivity analysis showed that the probability for DMF of being favourable (≤ 50.000 €/QALY gained) was between around 70% and 93%, thus ensuring robustness of the results.CONCLUSIONS: The results of this economic analysis show that, at the current price and the described assumptions, DMF represents a cost-effective option vs. other available first-line treatments indicated in RRMS in the perspective of the Italian NHS.[Article in Italian]

Evaluation of resource utilization using time-derived activity-based costing results in more effective processes and cost reduction

Evaluation of resource utilization using time-derived activity-based costing results in more effective processes and cost reduction

Evaluation of resource utilization using time-derived, activity-based costing (TDABC) to result in more effective processes and cost reduction.

22 Background: Current changes in health care economics have led to a focus on value-based health care. TDABC is a systematic method to assess personnel utilization and the associated cost in the delivery of medical care. Based on baseline process maps and cost estimates in our outpatient center, cancer surveillance visits (CSV) were identified as inefficient, lengthy and high cost. The purpose of this study was to determine if reallocation of personnel was feasible, resulted in decrease cost and better value care. Methods: In 2014, a multidisciplinary team developed process maps for each visit type in the outpatient center. Maps included each step of clinical care from registration to check out and the personnel associated with that care. Total personnel costs were based on the estimated time spent with each patient and the average salary of the care provider. In 9/2014, we instituted an advanced practice provider (APP) independent practice initiative where CSV were done by either faculty or APP, no longer both. Billing codes were used to determine the % of CSV seen by APPs only. Patient and staff satisfaction were assessed pre- and post-implementation with validated measures. Results: At baseline, the estimated patient time and personnel cost for a CSV was 98 min and $380.79. The estimated patient time and personnel cost for an APP only CSV was 53 min and $132.60.; resulting in a potential savings of $249/CSV. Prior to 9/14 less than 21% were seen by APP’s only. After implementation of the initiative, the number of APP only visits increased each quarter to Q1 27%, Q2 38%, Q3 40% and Q4 41%. The estimated cost savings based on 4000 CSV/year was $354,000. Patient satisfaction remained the same (Press-Ganey). APP and physician engagement/satisfaction increased by 30% (Gallup Employee Survey). Conclusions: Evaluation of our outpatient clinic using TDABC allowed us to identify low efficiency, high cost processes. After implementation of a new process, patient wait times and personnel costs were significantly reduced resulting in better value care and improved provider satisfaction.