Cost Reduction Opportunities Research Articles

Potential impact of traffic densification on rail freight transport cost in Sub-Saharan Africa

This article highlights the significant cost-reduction opportunities possible through the densification of rail freight traffic, especially over longer distances, and the concomitant implications for increased profitability for railway organisations in sub-Saharan Africa (SSA). Densification opportunities should also focus on the development of transport corridors throughout the region. SSA countries themselves can play a critical role in unlocking this potential by, inter alia, simplifying regional economic agreements. As with most other initiatives in SSA, unlocking this potential will require efficient cross-country collaboration.

Flow and Thermal Characteristics of Condensing Steam in a Single Horizontal Mini-Channel of a Multiport Cylinder Dryer

In papermaking processes it is well known that the dryer uses the greatest amount of energy and has costly components compared with other devices. These dryers thus offer outstanding opportunities for energy savings and cost reduction. Recently, Argonne National Laboratory developed the concept of a multiport cylinder dryer in which the steam flows through “ports,” or longitudinally oriented mini-channels, which are close to the cylinder–dryer surface. It was reported that the innovative design minimized the condensate layer thickness and increased the dryer shell's surface temperature. However, no systematically obtained experimental data are available. In this study we conducted experiments to investigate the flow and thermal characteristics of condensing steam in a single horizontal mini-channel, which represents a part of a multiport cylinder dryer. Based on the results, the flow pattern through a single horizontal mini-channel is presented. Also, we observed that the condensing heat transfer coefficient in the single horizontal mini-channel was about seven times higher than that of a conventional dryer with spoiler bars. Finally, the effects of the steam mass flux, system pressure, and aspect ratio of the mini-channel on the average condensing heat transfer coefficients as well as the pressure drops are presented.

Sub-Saharan Africa’s rail freight transport system: Potential impact of densification on cost

The main response to sub-Saharan Africa’s (SSA) challenges has been foreign aid. Yet, despite the large amounts received, the challenges remain. There is an opportunity to consider a different model with less focus on aid and more on investment. In the transport sector specifically, investment decisions should be informed by a longterm optimal balance between different transport modes. The research presented in this paper highlights the significant cost reduction opportunities possible through the densification of rail freight, especially over longer distances, with concomitant implications for increased profitability for rail operators. The densification opportunity should also place a core focus on transport corridors being developed throughout the region. SSA countries themselves can play a critical role in unlocking this potential through, inter alia, simplifying regional economic communities and taking the lead in structuring agreements with the international community.

Transforming the Shipbuilding and Ship Repair Project Environment

In April 2008, NSRP awarded the project entitled "Customization of Web-Based Planning and Production Engineering Technologies to Support Integrated Shipyard Work Flow," a collaborative research project that included Bollinger Shipyards and Atlantic Marine-Mobil. The purpose of the project was to develop and validate a project management approach to shipbuilding and ship maintenance through the delivery of a web-based production and engineering management tool tailored to the needs of this industry along with a reliable, exportable implementation process using planning and production engineering methodologies. This project was designed to enable shipyards to achieve reduction in project costs and cycle time through project standardization and the ability to perform rapid replanning while maintaining align-ment of all project stakeholders in real time. The project enabled the shipyards to bring forth quantifiable improvement opportunities that reflected the biggest impact on project delivery. This paper shares insight into the key findings derived through this transformational body of research, as well as provide an understanding of the robust process used to implement the shipyard-specific web-based project solutions in ship-building and ship repair project environments. The paper also provides a quantification and appreciation of the resulting cost benefits experienced by each of the participating shipyards. New construction programs in each of the shipyards enabled real-time metrics to be captured, illustrating the achievement of cost reduction opportunities resulting from this project.

Green IT 기반 성능개선 기술을 적용한 공공관리 시스템의 설계 및 구현

본 논문에서는 대규모 공공관리시스템에 그린IT 개념을 적용한 성능개선을 제안, 개발, 구현하여 관리, 비용, 인력 분야에 대하여 탁월한 성과를 도출하였다. 현재 운영 중인 시스템에 대하여 공공기관의 사용자들이 제시한 성능개선 사항을 분석하여 절감효과를 유발할 수 있는 리소스 중에서 그린IT 개념이 적용 가능한 항목을 선정하여 개선방안을 제시하고 시험운영을 거쳐 실제 시스템에 적용하는 절차로 구현하였다. 대규모 공공관리시스템으로는 국가자격 관리시스템을 대상으로 하여 기존의 개인별 시험용 저장장치를 보안처리를 강화한 온라인 처리과정으로 전환하여 비용 및 인력절감 효과와 관리상의 효율성을 확보하였다. 기존 운영시스템과 비교하여 볼 때 운영인력, 장애처리, 유지보수, 관리비용에서 2배에서 최대 12배의 효율성이 도출되었으며 년 간 최대 500만개의 개인 배포용 저장장치를 절감하였다. This paper covers a series of activities including initial proposal and actual development for the performance improvement of large-scale public facility management system under the application of green IT concept, which finally produced various excellent results in the administration of expense control, human resources, and general affairs. Actual development procedure starts from the analysis required by system users with the purpose of finding cost reduction opportunities under the application of green IT concept, which is followed by a series of activities including making a proposal for performance improvement, the development of trial system and the actual application into real system. As an example of large-scale public facility management system, national qualification management system was taken in order to convert the existing individual test storage unit into on-line storage space equipped with reinforced security function, resulting in acquisition of efficient productivity and greater savings in human resources as well as general expenses. A comparison with existing system and newly developed system was made in the area of number of operators, abnormal processing, system maintenances. It proved that efficiency increased to the minimum of 2 times and to the maximum 12 times with the 5 million savings of personal storage unit.

Cost Reductions - Materials

Currently, new and uncommon materials are being more used in automotive components, such as the manufactured by Powder Metallurgy due to new cost reduction strategies adopted by carmakers. The companies are searching more and with stronger aggressiveness the ways of finding cost reduction opportunities of a product and/or process. With this intention and for being it tracked by technical and commercial interests, new departments are being created with different names and structures. The ways to find out a reduction of viable cost are discussed in different ways of approaching of this question, which may be originated from the standardization of an item utilized in similar products, in the removal of components with questionable importance, in the change of manufacture processes, in the localization of items and finally, in the change of material and/or project. Starting from known approaches, the present work relates the most different ways of proposals and characterizes and quantifies them in graphical forms, adopted procedures, and by descriptions of ways pursued to reach a financial goal of reduction, mentioning typical examples of proposals with potential of implementation after a technical and critical analysis. Finally, the focus of this study is the approach of materials and specifications, said currently as the most complex and difficult field; however, with inexhaustible ways in the last instance in the field of Cost Reductions, and then the acquired knowledge should be used in sintered material.

Marketers' perceptions of the implementation difficulties of multichannel marketing

This paper identifies implementation difficulties associated with multichannel marketing as perceived by senior marketers. While, multichannel marketing is being increasingly used because of its revenue enhancing and cost reduction opportunities, it appears more difficult to implement than ‘traditional’ single channel marketing. Traditional strategy implementation frameworks as typified by Miles and Snow and Porter, do not appear to address the implementation complexities of multichannel strategies especially when considering the dynamism of contemporary external environments. Using the methodology of thematic analysis, three implementation difficulty themes were identified: (1) understanding multichannel customer behaviour; (2) delivering sales, service and pre-purchase information; and (3) dealing with organisational politics and conflict caused by emerging channels. We propose that dynamic strategic frameworks can better address complexity and uncertainty, and overcome implementation difficulties. The paper concludes with general and specific research propositions to test the effectiveness of dynamic strategic frameworks in terms of the three themes.

Review of DC System Technologies for Large Scale Integration of Wind Energy Systems with Electricity Grids

The ever increasing development and availability of power electronic systems is the underpinning technology that enables large scale integration of wind generation plants with the electricity grid. As the size and power capacity of the wind turbine continues to increase, so is the need to place these significantly large structures at off-shore locations. DC grids and associated power transmission technologies provide opportunities for cost reduction and electricity grid impact minimization as the bulk power is concentrated at single point of entry. As a result, planning, optimization and impact can be studied and carefully controlled minimizing the risk of the investment as well as power system stability issues. This paper discusses the key technologies associated with DC grids for offshore wind farm applications.

Energy Efficiency in Value Engineering: Barriers and Pathways

AND BENEFITS Abstract: Value engineering is a technique that wastewater treatment facilities (WWTFs) currently use, when required, to analyze cost reduction and performance optimization opportunities. The research explores the potential to address energy efficiency during value engineering analyses of WWTFs. The research identifies the Society of American Value Engineers (SAVE) International as the primary value engineering standards and certification organization and shows the six-step SAVE process for conducting value engineering analyses. A survey of WWTFs identifies four WWTFs that conduct value engineering analyses using the SAVE process. Then, the research reviews the analyses to determine their effectiveness in addressing process energy efficiency opportunities. While the SAVE value engineering process does not require identification of energy efficiency opportunities, the analyses conducted by the WWTFs do identify such opportunities. Based on survey results, WWTFs only conduct value engineering analyses when required, primarily because of the cost and time commitment. The research presents barriers to conducting value engineering analyses and discusses possible mitigation pathways. Pathways include 1) steps the State Revolving Fund can take, 2) development of a national value engineering standard that regulatory agencies can incorporate into wastewater system design requirements, and 3) development of WWTF-oriented energy efficiency training materials to add to SAVE’s value engineer certification training. Value engineering is a technique that wastewater treatment facilities (WWTFs) currently use, when required, to analyze cost reduction and performance optimization opportunities. The research explores the potential to address energy efficiency during value engineering analyses of WWTFs. The research identifies the Society of American Value Engineers (SAVE) International as the primary value engineering standards and certification organization and shows the six-step SAVE process for conducting value engineering analyses. A survey of WWTFs identifies four WWTFs that conduct value engineering analyses using the SAVE process. Then, the research reviews the analyses to determine their effectiveness in addressing process energy efficiency opportunities. While the SAVE value engineering process does not require identification of energy efficiency opportunities, the analyses conducted by the WWTFs do identify such opportunities. Based on survey results, WWTFs only conduct value engineering analyses when required, primarily because of the cost and time commitment. The research presents barriers to conducting value engineering analyses and discusses possible mitigation pathways. Pathways include 1) steps the State Revolving Fund can take, 2) development of a national value engineering standard that regulatory agencies can incorporate into wastewater system design requirements, and 3) development of WWTF-oriented energy efficiency training materials to add to SAVE’s value engineer certification training. Benefits:  Documents WWTFs’ current use of value engineering only when required by regulatory organizations and presents possible pathways to promote this practice for energy efficiency.  Documents that WWTFs identify energy efficiency opportunities during value engineering analyses, though energy efficiency is not the focus of value engineering analysis.  Presents a pathway through SAVE to add WWTF-oriented energy efficiency training materials to their value engineer certification training.  Discusses a pathway to promote wastewater system value engineering through a national standard.

Further Opportunities for Cost Reduction of Medical Care

The already high and still rising cost of health care has become a matter of serious concern and a subject of political dispute. The problem has no magic cures but, as is shown here, there are a number of promising modifications in current practice that promise to reduce the required outlays without impairing appropriate health care. Continual reports of new medicines, new tests, and new procedures have created an urgent need for careful comparison and evaluation of the advantages and beneficial results that these innovations offer. The same is true for the growing knowledge of genetic variations, which affects the course of therapy for some patients. Costs also can be saved, in some instances, by utilization of medical therapy, rather than interventional procedures. Preventive medicine provides still more opportunities for cost savings. This paper provides an overview of promising potential approaches to reduce the cost of health care.

A multi-criteria model for evaluating design for manufacturability

The design for manufacturability (DFM) method is most effective when integrated with the new product development (NPD) process. Due to the focused nature of the associated product and process knowledge and the extensive effort required, there are many NPD situations where classical DFM techniques cannot be readily applied. In this paper, Pro-DFM a multi-criteria model for manufacturability analysis that identifies product realisation opportunities (PRO) for cost reduction is presented. The key assumption in Pro-DFM is that the NPD team has a baseline estimate of production costs, and the evaluation question is how DFM issues will affect the expected unit production cost. The Pro-DFM model analyses a new design in three different factors: part procurement and handling, product assembly fabrication processes, and inventory costs. Each of these is independently analysed using a hierarchy of multiple criteria and sub-criteria. This approach is found to be amenable to most NPD processes, and conducive to easy integration. Each evaluation sub-criterion is presented in the form of a simple query, which is associated with a set of responses that is flexibly anchored to a uni-dimensional scale. A case study example is used to demonstrate the DFM evaluation process and the derivation of the cost penalties.

Applying Lean Six Sigma and TRIZ methodology in banking services

Service operations now comprise more than 80% of the GDP in the United States and are rapidly growing around the world. The cost to maintain and service an application is typically more than the initial purchase price. The revenue growth potential of improving the speed and quality of service often overshadows the cost reduction opportunities. The Lean Six Sigma approach is a popular methodology to improve the business opportunities in customer satisfaction, cost and process speed for manufacturing. In this study, we attempt to extend the Lean Six Sigma approach to a broader application in the service industry and integrate TRIZ methodology to enhance the traditional techniques of Lean Six Sigma. Theoria Resheneyva Isobretatelskehuh Zadach (TRIZ) is an effective method for analysing customer needs and developing innovative solutions to meet those needs. A sample problem of the banking service is used to demonstrate how TRIZ can be applied to a real-world problem while in a Lean Six Sigma DMAIC process. The results show that the application of Lean Six Sigma methodology with TRIZ performs effectively in the improvement of banking services.

Carbon‐constrained health care enterprise

The health economy is a significant part of a national economy accounting typically for about 8% of GDP spent. As national economies respond to the dual challenges of severe economic turbulence on the global scale and climate change mitigation, the health economy is coming under increasing pressure to respond. Indications for sharp reductions in budgets and reductions in greenhouse gas emissions, such as carbon dioxide, are widespread. In this paper an analysis is undertaken of the diverse forces acting on a typical health care enterprise. The forces, both economic and carbon related, are investigated in terms of their effects through the enterprise and across its boundaries on the supply, demand and waste sides. The overall aim is to show how the enterprise and whole supply chains may flip synchronously into a low-carbon evolutionary pathway. By illustrating how different elements of the health care enterprise may respond to these developments, diverse opportunities for cost reduction, carbon reduction and product (goods and services) development are identified. These opportunities involve a variety of waste reduction and energy and materials conservation measures as well as new ways of collaborating with other enterprises going through similar transformations. The overall objective is to show that the carbon-constrained health care enterprise and the low-carbon health economy in which it sits may broaden its role in the coming decades to include a degree of responsibility for the health of the environment. This broader role is likely to supplement and entangle with the traditional role of the health economy, currently focused narrowly on human health, and lead to extensive organisational transformation, and infrastructure and product developments.

Innovative logistics for the transportation of sand and gravel in Brazil

The transportation of sand and gravel, which are highly consumed in civil construction, is traditionally hauled on roads and highways. Currently, the growing demand in large metropolitan areas is met by an increasing road fleet, which delivers the aggregates from the origin to construction sites. This paper discusses alternative distribution means for aggregates in Sao Paulo, Brazil, focusing on the cost-reduction opportunities associated with the use of railway and waterway modals. The benefits identified in the research are not merely limited to greater competitiveness due to the reduction of costs in logistics, but also to reducing traffic jams.

Benchmarking the Productivity of Photomask Manufacturers

A survey-based, empirical study that benchmarks the productivity of photomask manufacturers has led to some significant conclusions. First, the wide variation in the productivity indicators from company to company suggests that all participants may have significant cost-reduction opportunities within their operations. Second, the high downtime of pattern generation tools is limiting productivity. Third, producing smaller feature sizes is correlated to an investment in engineering and experimentation capacity. It could not be confirmed that photomask manufacturers are successfully taking advantage of economies of scale, suggesting that the outlook for profitability of many photomask manufacturers is precarious.

Economic assessment of single-walled carbon nanotube processes

The carbon nanotube market is steadily growing and projected to reach $1.9 billion by 2010. This study examines the economics of manufacturing single-walled carbon nanotubes (SWNT) using process-based cost models developed for arc, CVD, and HiPco processes. Using assumed input parameters, manufacturing costs are calculated for 1 g SWNT for arc, CVD, and HiPco, totaling $1,906, $1,706, and $485, respectively. For each SWNT process, the synthesis and filtration steps showed the highest costs, with direct labor as a primary cost driver. Reductions in production costs are calculated for increased working hours per day and for increased synthesis reaction yield (SRY) in each process. The process-based cost models offer a means for exploring opportunities for cost reductions, and provide a structured system for comparisons among alternative SWNT manufacturing processes. Further, the models can be used to comprehensively evaluate additional scenarios on the economics of environmental, health, and safety best manufacturing practices.

Advanced Waterborne Maintenance and Salvage Operations for the Royal Navy

AbstractThe Salvage and Marine Operations Integrated Project Team (S&MO IPT) is the principal authority in the UK Ministry of Defence (MoD) charged with providing Salvage, Blue Water Towing, Specialist Moorings, and Heavy Lift Expertise to the UK Armed Forces. It has recently become the MoD center of expertise for In Water Maintenance & Repair (IWMAR). UMC International Plc is a commercial enterprise specializing in the development and execution of waterborne maintenance both on commercial and military vessels worldwide. UMC is part of the V. Holdings Group, the world's largest marine service provider, offering comprehensive through life support to a fleet of almost 1,000 vessels. A unique partnering of industry and the UK MoD has led to the expansion of waterborne and underwater maintenance, providing the Royal Navy (RN) with significant opportunities for cost reduction, increased periods between dockings and enhanced platform availability. This paper discusses the various technologies developed for both waterborne maintenance of the RN fleet and specific tasks undertaken by the S&MO IPT.

Globalization failures in a neo-liberal world: the case of FIAT Auto in the 1990s

In the 1990s FIAT Auto embarked on an ambitious globalization project (Project 178). FIAT Auto’s main aim was to enter new markets in emerging economies, although globalization also opened up opportunities for cost reduction through global sourcing. The countries chosen were ones in which it was anticipated that neo-liberal programmes of economic reform would result in fast economic growth. The result however was slow growth and economic crises. For FIAT Auto the consequence was a massive shortfall in anticipated sales which contributed along with a number of other factors to a deep financial crisis and a dramatic restructuring of the FIAT Group. This paper seeks to examine and explain these events drawing on a global value chain approach to the analysis of corporate profit and accumulation strategies.

Identification of Drug Cost Reduction Opportunities in A University Hospital in Saudi Arabia

Identification of Drug Cost Reduction Opportunities in A University Hospital in Saudi Arabia

Accelerating internet adoption in China's fresh produce supply chain: A VEGNET approach

The rapid growth and new development of internet technologies have provided many significant opportunities for cost reduction and service improvement for the supply chain. However, the adoption of the internet technologies in agribusiness supply chains (SC), especially the fresh produce supply chain, is still slow and far behind other sectors. This paper is about the EU funded project VEGNET (Enhancing Vegetable Supply Chain Management with Internet Technologies) which aims to accelerate the speed of internet adoption among fresh produce supply chains involving small‐ and medium‐sized enterprises (SMEs). The paper first introduces the project's objectives and approaches. It then presents some key findings from a survey conducted with United Kingdom SMEs in fresh produce supply chains. These findings provide actual insights into the current internet and software usage of the United Kingdom SMEs and help to reveal gaps between Europe and China. Findings and implications from the project's other activities, such as case studies and surveys in China are also discussed.