Reduce Unit Costs Research Articles

Stimulating investment in energy materials and technologies to combat climate change: an overview of learning curve analysis and niche market support

This paper addresses the probable levels of investment needed in new technologies for energy conversion and storage that are essential to address climate change, drawing on past evidence on the rate of cost improvements in energy technologies. A range of energy materials and technologies with lower carbon emissions over their life cycle are being developed, including fuel cells (FCs), hydrogen storage, batteries, supercapacitors, solar energy and nuclear power, and it is probable that most, if not all, of these technologies will be needed to mitigate climate change. High rates of innovation and deployment will be needed to meet targets such as the UK's goal of reducing its greenhouse gas emissions by 80 per cent by 2050, which will require significant levels of investment. Learning curves observed for reductions in unit costs of energy technologies, such as photovoltaics and FCs, can provide evidence on the probable future levels of investment needed. The paper concludes by making recommendations for policy measures to promote such investment from both the public and private sectors.

Inside the Learning Curve: Opening the Black Box of the Learning Curve

The traditional learning curve asserts that organizational performance improves as a function of operating experience. The typical example is unit cost decreasing as a function of cumulative production volume. As an organization produces more it somehow “learns” to reduce unit cost. The disappointing managerial implication is that the only way to accelerate improvement in organizational performance is to produce more. This may not be feasible or desirable. I review the literature that extends the traditional learning curve in two ways. First, experience is not the only source for learning. Organizations can engage in deliberate learning activities such as quality improvement projects. Furthermore, not all experiences are equally effective at enhancing organizational performance. Second, the learning curve is not just some black box. There is a process inside the learning curve. Experience and deliberate activities can foster learning. Learning can yield better organizational knowledge. Better organizational knowledge can persuade organizational members to modify behavior. Changed behavior, in turn, can improve organizational performance. None of these steps are trivial. Scholars have merely scratched the surface in terms of studying these steps. No single study has incorporated all steps. I review the literature and identify opportunities for future research that should provide insights for organizations to better manage learning curves.

Design and development of cashew nut shelling machine

PurposeThe purpose of this paper is to investigate the physical and mechanical characteristics of the roasted cashew nut during fracture, by subjecting the nut to varying impact load tests at different orientations to ascertain the critical impact load that fractures the shell without damaging the kernel within. This load value was correlated with other parameters; shell/kernel moisture content level, average nut mass, to determine the required projection velocity to achieve this force. This projection velocity is the critical factor in sizing and design of the optimum configurations of the shelling impeller.Design/methodology/approachMechanical properties of roasted cashew nut were first determined to know their fracture points. Each component of the shelling machine was designed. The components were assembled and the machine was tested for performance.FindingsMachine throughput capacity was determined as 15.57 kg/h; shelling efficiency was 95 per cent; and whole kernel recovery was 70 per cent.Practical implicationsThe efficiency in terms of whole kernel recovery could be improved by improving the pretreatment measures on the nuts.Originality/valueThe paper presents a machine which is affordable to peasant farmers and requires little or no training for operation and maintenance. The advantage of reduced unit cost can be derived from large‐scale commercial production of this sheller.

Virginia-Class Submarine: Two for Four in 2012 (B)

The VIRGINIA-class submarine was one of the largest naval-acquisition projects in history, involving the construction of 30 submarines at an acquisition cost of $93 billion. By FY05, the VIRGINIA-class program was in its 10th year. Construction had begun on seven submarines. Unit costs were running 41% over the base-line budget, and production goals were not being met. Ship construction budget limits necessitated a 20% unit-cost reduction, an unprecedented task on a ship already in serial production. How would the program office achieve that goal and prevent the program from being truncated, the fate of its predecessor the SEAWOLF-class?

A New Approach for Solid Waste Handling in Mosul City, Comparison Study with the Existing System

Municipal Solid waste management constitutes a serious problem in many developing countries. Cities spend increasing resources to improve their Municipal solid waste management. Based on the concept that solid waste is a resource containing significant amounts of valuable materials, new approaches of solid waste management are adopted. The present work proposes a policy framework for improving a low-cost waste management system in Mosul city. The new approach induces additional services to the existing solid waste system to reduce the unit cost per ton of solid waste generated. The proposed system includes sorting, recycling and composting units. This paper presents an application of a new computerized decision package for an integrated solid waste management within Mosul city. New software called COSEPRE is used to analyze the service cost for both existing and proposed solid waste management system. The input data is collected from different related directorates in Mosul city. Data that are difficult to be obtained are prepared by laboratory analysis or field investigations. The results revealed a 58% reduction in unit cost by employing the new system of solid waste management.

Management strategies to reduce operating costs in a commercial shrimp hatchery in NW Mexico

Strategies to reduce operating costs at an expanding shrimp hatchery in NW Mexico are presented for a period covering 3 years (2004–2006). The hatchery increased its greenhouse-type larval rearing halls from three (50 tanks, total water volume 996 m3) in 2004, to five (70 tanks, water volume 1,396 m3) in 2005, and to seven (94 tanks, total water volume 1,876 m3) in 2006. Production increased from 400 million postlarvae in 2004 to 579 million in 2005 to 760 million in 2006, but operating costs increased only 6% during this period and the unit cost for postlarvae was 44% lower. Administration expenses were the highest variable cost, but restructuring the company reduced them from 35% in 2004, to 29 in 2005 and to 21% in 2006. Feed was the second largest variable cost, reduced from 44 to 36 to 31 through improved feeding practices, changes in feed composition, and bulk purchases of commercial feeds. Costs for propane and the workforce increased, in part from higher consumption and additional staff and higher salaries to retain the trained workforce. Competition will continue to lower the market price for shrimp postlarvae, forcing hatcheries into a permanent improvement process. Increasing costs for energy will require investments in energy-saving technologies. Improved sanitation and strict bio-security procedures will increase the survival rate, thereby reducing unit costs still further.

Simplified method of sizing and life cycle cost assessment of building integrated photovoltaic system

This paper presents methodology to evaluate size and cost of PV power system components. The simplified mathematical expressions are given for sizing of PV system components. The PV array size is determined based on daily electrical load (kWh/day) and number of sunshine hours on optimally tilted surface specific to the country. Based on life cycle cost (LCC) analysis, capital cost (US$/kW P) and unit cost of electricity (US$/kWh) were determined for PV systems such as stand-alone PV (SAPV) and building integrated PV (BIPV). The mitigation of CO 2 emission, carbon credit and energy payback time (EPBT) of PV system are presented in this paper. Effect of carbon credit on the economics of PV system showed reduction in unit cost of electricity by 17–19% and 21–25% for SAPV and BIPV systems, respectively. This methodology was illustrated using actual case study on 2.32 kW P PV system located in New Delhi (India).

Establishing perennial grass energy crops in the UK: A review of current propagation options for Miscanthus

A key UK government strategy is to expand the supply of home grown biomass and facilitate the development and competitiveness of a sustainable supply chain, while promoting low-carbon technology. Analysis of the potential supply chain suggests that this can, in part, be achieved by growing energy crops. Meeting expectations is, however, reliant on developing an economically viable biomass sector which incorporates efficient, sustainable and regional supply chains to increase biomass use. This review aims to present the knowledge by which plant propagules, for the biomass supply chain, can be produced at minimum cost. It specifically addresses the potential of biomass production from the perennial grass Miscanthus. This review is part of a project to identify the causes for the apparent limitations in the establishment of UK perennial energy crops. The work reported here focuses on the knowledge available regarding the potential routes by which Miscanthus material could be mass produced. The review concludes that high density plantings must be established to maximise yields. Vegetative clonal plant propagation is required to deliver uniform crops of selected germplasm. Commercial seed production in the UK is not possible and potentially undesirable for selected germplasm. Rhizome production and division is slow, but currently does not limit increases in production because the UK industry uptake is currently small. Uptake of new germplasm will be dependent on the use of rapid and cost effective plant propagation systems, particularly vegetative systems. The germplasm collection established provides an opportunity for genotypes to be propagated by a range of techniques to determine ease of propagation in terms of cost and multiplication rates. At present the establishment rate of Miscanthus is slow and this appears limited by economics; evidence suggests that the cost of plant propagules is one factor that constrains widespread planting. New techniques are required that simultaneously reduce unit costs of propagules and increase the speed of their availability to aid this developing industry.

Has payment by results affected the way that English hospitals provide care? Difference-in-differences analysis

Objective To examine whether the introduction of payment by results (a fixed tariff case mix based payment system) was associated with changes in key outcome variables measuring volume, cost, and...

Integral Formulation of the Problem of Current Distribution in Compulsator Wires of Electromagnetic Launchers and Railguns

Compulsators are power sources of choice for use in electromagnetic launchers and railguns. These devices hold the promise of reducing unit costs of payload to orbit. In an earlier work, the author had calculated the current distribution in compulsator wires by considering the wire to be split into a finite number of separate wires. The present work develops an integral formulation of the problem of current distribution in compulsator wires which leads to an integrodifferential equation. Analytical solutions, including those for the integration constants, are obtained in closed form. The analytical solutions present a much clearer picture of the effect of various input parameters on the cross-sectional current distribution and point to ways in which the desired current density distribution can be achieved. Results are graphically presented and discussed, with particular reference to a 50-kJ compulsator in Bangalore. Finite-element analysis supports the results.

Impact of Strategic Type on Success Measures for Product Development Projects*

Does the strategic type of firm affect which success measures should be used for product development (PD) projects? This paper theorizes that it should and finds that it does because the PD projects undertaken are usually an expression of the strategic type of the firm. The purpose of this research is to affirm a 1996 survey of members of the Product Development & Management Association (PDMA) that proposes that firms' PD performance measures should vary by their strategic type. Thus, for example, prospectors, the strategic type most likely to introduce new products to new markets, should place greater importance on PD success measures consistent with their characteristic strategies of changing product lines and early market entry. In contrast, defenders, the strategic type most likely to maintain stable product lines for existing markets, should place greater importance on PD success measures consistent with their characteristic strategies of stable product lines and market penetration. Analyzers, a hybrid type between prospectors and defenders, should prefer measures consistent with their characteristic strategies for improving products and being early followers in newer markets. To relate strategic types to specific success measures for PD projects, this paper proposes a model of the relationship based on the degree of project newness to the firm and then catalogs measures of PD project success and groups them according to degree of project newness. The research findings are based on survey responses from 222 individuals who are employed by financial service providers, who identified their firms by strategic type and rated the importance of PD success measures to their firms. The importance of 21 performance measures is compared by strategic type to find significant differences among prospectors, analyzers, and defenders. This research finds several significant relationships. prospectors, for example, attach greater importance to customer satisfaction, launch timeliness, and product return on investment, all of which may be characterized as relating to a higher degree of project newness to the firm. defenders and analyzers, on the other hand, attach more importance than prospectors to measures of unit volume, cost reduction, and margin goals, all of which relate to a lower degree of project newness to the firm. In short, because prospectors seek to introduce new products to new markets, they consider important those measures, which accord with greater product and market newness. The major conclusion of this paper is that strategic type affects the importance of project performance measures and that all firms should not use the same success measures. Firms should contextualize their success in PD projects based on their strategic type. This conclusion resonates with previous findings that strategy is a key determinant of PD success, though it is infrequently included in PD success studies. This paper, therefore, challenges the implicit assumption in the mainstream of PD success literature that success can be determined without regard to firm strategy.

Cost Savings Associated With US Hospital Palliative Care Consultation Programs

Hospital palliative care consultation teams have been shown to improve care for adults with serious illness. This study examined the effect of palliative care teams on hospital costs. We analyzed administrative data from 8 hospitals with established palliative care programs for the years 2002 through 2004. Patients receiving palliative care were matched by propensity score to patients receiving usual care. Generalized linear models were estimated for costs per admission and per hospital day. Of the 2966 palliative care patients who were discharged alive, 2630 palliative care patients (89%) were matched to 18,427 usual care patients, and of the 2388 palliative care patients who died, 2278 (95%) were matched to 2124 usual care patients. The palliative care patients who were discharged alive had an adjusted net savings of $1696 in direct costs per admission (P = .004) and $279 in direct costs per day (P < .001) including significant reductions in laboratory and intensive care unit costs compared with usual care patients. The palliative care patients who died had an adjusted net savings of $4908 in direct costs per admission (P = .003) and $374 in direct costs per day (P < .001) including significant reductions in pharmacy, laboratory, and intensive care unit costs compared with usual care patients. Two confirmatory analyses were performed. Including mean costs per day before palliative care and before a comparable reference day for usual care patients in the propensity score models resulted in similar results. Estimating costs for palliative care patients assuming that they did not receive palliative care resulted in projected costs that were not significantly different from usual care costs. Hospital palliative care consultation teams are associated with significant hospital cost savings.

Flow modelling of construction site materials and waste logistics

PurposeThe purpose of this paper is to determine the nature and extent of the current practice of logistics in the construction industry and to investigate the utility of reverse logistics in a construction context.Design/methodology/approachA pilot study was utilised to devise a method for the identification and measurement of parameters for incorporation within a process of construction site logistics optimisation. Data on vehicular movements were collected from seven sites in Cape Town. The data were used to design a flow model of material delivery and waste removal vehicular movements.FindingsThe results showed that in terms of transport distribution, of all vehicle movements observed, 62.6 per cent were classified as material delivery and 26.3 per cent as construction and demolition (C&amp;D) waste removal. This ratio approximates to 2.4 materials delivery journeys to one waste removal journey. An optimised integrated materials delivery and waste removal logistics model is presented.Practical implicationsThe research has highlighted the potential for integration of building materials and C&amp;D waste logistics. Based on the ratio of 2.4:1, up to 26.3 per cent of vehicular movements transiting sites could be eliminated by allowing material delivery vehicles to back‐haul waste to points of disposal, reuse or reclamation.Originality/valueThe potential use of “reverse logistics” in a construction context is demonstrated, as is the scope for the utilisation of spare capacity through the application of the reverse logistics concept and the possible reduction in unit costs and numbers of empty vehicular movements.

Multi-objective optimization on mix proportions of HSHPC applied to SRC composite structures

The fine bond behaviour between steel shape and concrete is the base of their cooperation. For designing high strength and high performance concrete (HSHPC) applied to steel reinforced concrete (SRC) structures, a mathematical model of multi-objective and nonlinear optimization is established based on the bond-slip theory between steel shape and concrete, which takes the materials' cost and bond strength as objective functions, and takes the other performance indexes of HSHPC as constraint conditions. Opti- mal mix design is implemented with an application of convergent sequential quadratic programming and based on Matlab language. The optimized concrete mix proportions can satisfy all the specifications, and especially can raise the bond strength between steel shape and concrete and reduce unit cost of HSHPC.

Early discharge and home intervention reduces unit costs after total hip replacement: results of a cost analysis in a randomized study

Total hip replacement (THR) is a common and costly procedure. The number of THR is expected to increase over the coming years. Two pathways of postoperative treatment were compared in a randomized study. Fifty patients from two hospitals were randomized into a study group (SG) of 27 patients receiving preoperative and postoperative education programs, as well as home visits from an outpatient team. A control group (CG) of 23 patients received "conventional" rehabilitation augmented by a stay at a rehabilitation center if needed. All costs for the two groups both in hospitals and after discharge were collected and analyzed. On average total costs for the SG were $8,550 and $11,952 for the CG, a 28% cost reduction. Total inpatient costs were $5,225 for the SG and $6,515 for the CG. In a regression analysis the group difference is statistically significant. Adjusting for changes in the Oxford Hip Score gives effective costs (C/E). The ratio of the SGs C/E to the CGs is 0.60. That is a cost-effectiveness gain of 40%. A shorter hospital stay augmented with better preoperative education and home treatment appears to be more effective and costs less than the traditional in hospital pathway of treatment.

Empirical specification of cost reductions associated with accumulated knowledge in the Swedish kraft paper industry

This paper presents an alternative approach in estimating the effect that technological knowledge has on the cost structure facing individual firms. The suggested method is applied to the Swedish kraft paper industry and relies on a comprehensive dataset for eight individual integrated kraft paper mills. The developed model is based on a two-step process. Step one, the estimation of a pure cost reduction index is derived using a flexible variable cost function which is utilising mill-specific dummy variables. In addition, this approach allows for an estimation of the pure unit cost reduction index that is devoid of scale and price effects which, if not dealt with can produce spurious results when estimating learning effects. Step two, is the estimation of a two factor dynamic learning curve model (2FDLC) using the estimated pure unit cost reduction index as dependent variable. The results suggest that the Swedish kraft paper industry has relatively little to gain in terms of cost reduction through a further technological learning. However, the method performed well, producing intuitive and statistically significant estimates indicating its usefulness in further analyses.

HIV prevention costs and program scale: data from the PANCEA project in five low and middle-income countries

BackgroundEconomic theory and limited empirical data suggest that costs per unit of HIV prevention program output (unit costs) will initially decrease as small programs expand. Unit costs may then reach a nadir and start to increase if expansion continues beyond the economically optimal size. Information on the relationship between scale and unit costs is critical to project the cost of global HIV prevention efforts and to allocate prevention resources efficiently.MethodsThe "Prevent AIDS: Network for Cost-Effectiveness Analysis" (PANCEA) project collected 2003 and 2004 cost and output data from 206 HIV prevention programs of six types in five countries. The association between scale and efficiency for each intervention type was examined for each country. Our team characterized the direction, shape, and strength of this association by fitting bivariate regression lines to scatter plots of output levels and unit costs. We chose the regression forms with the highest explanatory power (R2).ResultsEfficiency increased with scale, across all countries and interventions. This association varied within intervention and within country, in terms of the range in scale and efficiency, the best fitting regression form, and the slope of the regression. The fraction of variation in efficiency explained by scale ranged from 26% – 96%. Doubling in scale resulted in reductions in unit costs averaging 34.2% (ranging from 2.4% to 58.0%). Two regression trends, in India, suggested an inflection point beyond which unit costs increased.ConclusionUnit costs decrease with scale across a wide range of service types and volumes. These country and intervention-specific findings can inform projections of the global cost of scaling up HIV prevention efforts.

Expert system for operation optimization and control of cutter suction dredger

Manually controlled dredging process is of low production and poor efficiency. To raise production and to reduce unit cost, automatic control of dredging process is a desired solution to the problem. The automation of dredging operations has been actively researched by scholars all over the world for a couple of years. Based on the prior research results of dredging operations, an expert control system that is aimed to realize online operation optimization and automatic control of dredging process is introduced in this paper. Details on the problem to be dealt with and the expert system (ES) based solution are introduced; the focus of this paper is put on the architecture, knowledge presentation and inferential mechanism of the ES. An expert control software program is developed with C++. Based on the test platform constructed the performance of the ES is evaluated by comparison. Experiments show that the expert control scheme presented is capable of realizing automatic dredging process control with acceptable performance.

Macroeconomic effects of efficiency policies for energy-intensive industries: The case of the UK Climate Change Agreements, 2000–2010

This paper reports a study modeling the UK Climate Change Agreements (CCAs) and related energy-efficiency policies for energy-intensive industrial sectors. Bottom–up estimates of the effects of these policies are introduced into the energy-demand equations of a top–down dynamic econometric model of the UK economy with fifty industrial sectors, MDM-E3. This allowed estimation of the effects of the reduced energy use for the outputs from the sectors, i.e. the reductions in unit costs of the energy-intensive industries, on the demand for their outputs (both in the UK and in the export markets). The model is solved as a counterfactual 2000–2005 and as a projection 2005–2010 in a series of scenarios to allow estimation of the effects of the policies on inflation and growth, as well as on overall energy demand and CO 2 emissions. The system-wide final energy reductions is estimated to be 4.2 mtoe, or 2.6%, of total final demand for energy by 2010, including a rebound effect of 19%, with negligible effects on inflation and a slight increase in economic growth through improved international competitiveness.

Economies of scale in community water systems

Data sets from the U.S. Environmental Protection Agency's 1995 and 2000 Community Water Systems surveys were used to examine the production costs of water supply systems. The authors estimate water supply economies of scale by estimating the elasticities of both the total unit cost and the individual component costs. For total unit cost, they found that a 1% production increase reduced unit costs by a statistically significant 0.16%. For individual component costs, higher economies of scale in capital, materials, outside services, and other costs and lower, but still positive, economies of scale in labor and energy costs were found. These economies of scale may reflect production economies or suggest that larger systems are better than smaller systems at bargaining and receiving services and materials at a lower unit cost. Importantly, bargaining gains and some production economies do not necessarily depend on water systems becoming physically interconnected.