• East Asian Journal of Business Economics (EAJBE)
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• v.12 no.1
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• pp.35-42
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• 2024

Purpose: A railroad project is a complex system with large construction costs in the initial stage and ongoing operating costs over its lifecycle. Current railroad projects tend to be based on construction options, which leads to huge deficiencies in operating costs. This phenomenon results from a lack of appropriate tools to accurately estimate a railroad project's lifecycle costs. This study attempts to analyze the major components of railroad operating costs and to propose a decision-making system for analyzing the long-term lifecycle costs of railroad projects. Research design, data and methodology: We review the literature and analyze the current status of railroad operating costs in Korea and overseas. Based on previous projects, a framework for project options and operating costs is proposed. The framework is applied to actual railroad projects to demonstrate the validity of the model. Results: Case analysis shows that our framework is comprehensive in analyzing the primary aspects of railroad operating costs and plays an effective role in choosing various railroad project options. This study points out that the railway project operates inefficiently because estimating long-term costs without reflecting specific project options causes many errors. Conclusions: A major contribution of this study is the development of an improved framework for accurately estimating operating costs and providing policymakers and engineering firms with a holistic decision support system. Detailed components in estimating operating costs of the railroad business are discussed. And we present a decision-making tool that policymakers and private businesses can use in planning the railroad business.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.4
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• pp.10-22
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• 2010

The first full-scale u-City operation has started in Dongtan u-City. As local cities take over and operate the u-City, unexpected issues arise such as securing the budget of operating costs and self-providing the costs with business models utilizing the u-City assets. The paper presents a strategy for solving these issues. The strategy provides a foundation(infrastructure) for long-term operation models which may reduce the long-term operating costs. In order to establish the economic operating framework of u-City, suggested are some cost-reduction models based on the operating costs structure. For each model, a base framework with comparative analysis of operating costs is provided. With these models, each u-City may select a relevant model according to the characteristics of it. We hope that the framework provides the foundation for efficient and sustainable u-City operations.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.1
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• pp.24-32
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• 2010

The first full-scale u-City operation has started in Dongtan u-City. As local cities take over and operates the u-City, unexpected issues arise such as securing the budget of operating costs and self-providing the costs with business models utilizing the u-City assets. The paper presents a strategy for solving these issues. The strategy provides a foundation(infrastructure) for long-term operation models which may reduce the long-term operation costs. In order to establish the economic operating framework of u-City, suggested are some cost-reduction models based on the operating costs structure. For each model, a base framework with comparative analysis of operating costs is provided. With these models, each u-City may select a relevant model according to the characteristics of it. We hope that the framework provides the foundation for efficient and sustainable u-City operations.

• Journal of Society of Preventive Korean Medicine
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• v.18 no.1
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• pp.43-52
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• 2014

This study was conducted to analyze if there is a difference between the head hospital and branch hospital by comparing the profitability and operating expenses to patient revenue of oriental medicine hospitals affiliated with universities in order to find whether opening branch hospitals is an appropriate method to increase profitability. Profit indices used for the comparison of head hospital and branch hospital include ratio of operating profit on medical revenue, net-income on medical revenue, net profit to total assets, and operating profit to total assets; and cost indices included ratio of labor costs, material costs and administrative costs. In comparison of profit indices of head hospitals and branch hospitals, head hospitals displayed negative(-) in all four profit index averages while branch hospitals displayed positive(+), showing that branch hospitals have higher profitability. In particular, in the case of head hospitals, ratio of net profit to total assets was -13.6%, while that of branch hospitals was 12.9%, which was higher than 3.1%, the average of Korean oriental medicine hospitals in 2011. As a result of difference analysis between groups of head hospitals and branch hospitals, profit indices of ratio of operating profit on medical revenue, net-income on medical revenue, and ratio of net profit to total assets were found to vary by hospitals, but there was no statistically significant difference between head hospitals and branch hospitals(p<0.1). Only the ratio of operating profit to total assets of head hospitals and branch hospitals indicated significant difference between the two groups, showing that ratio of operating profit to total assets of branch hospitals is larger than that of head hospitals. Meanwhile, the cost indices of ratio of labor costs, material costs and administrative costs in the difference test results did not show significant difference between the head hospital and branch hospital(p<0.1). Thus, it cannot be said that a certain oriental medicine hospital's profitability is high or low depending on whether it is head hospital or a branch as profitability varies depending on the management environment of the hospital. Therefore, oriental medicine hospitals affiliated with universities would need to make efforts to increase their profitability as an individual hospital rather than focusing on whether they are head hospital or a branch.

• Journal of Korean Society of Transportation
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• v.11 no.2
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• pp.45-62
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• 1993

The major objective of this study is to analyze the differences between operating costs of teleconferencing and alternative transportation modes for the conference in major compaines. Alternative transportation modes include road, rail, and air transportation mode. A case study is conducted using the data gathered for Pohang Steel Coperations. The main results are: (1) the operating cost of the teleconferencing is cheaper than operating cost of transportation modes when the number of teleconferencing are over 12 frequencs, and the number of person are over 15. Results reveal that teleconferencing turns out to be effective means of conference. (2) the amount of differences of operating costs on teleconsferencing and transportation modes gets higher according to the time elapsed. In particular, when teleconferencing cost is compared to operating cost of road transportation, it is found that the cost saving of 2.75 billion won in year 2001 can be realized.

• International Journal of Railway
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• v.9 no.1
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• pp.10-14
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• 2016

Life cycle cost analysis is compulsively required for the system operation. System operation costs are consisted of acquisition, operation, maintenance and so on. In the beginning of the system planning, we need to take into account of various costs following the system operating. To implement LCC, we need to analyze system life cycle to identify all costs during system life. The costs can be divided into three parts. The first part is purchasing cost, the second for operating cost and the last for disposal cost. The second operating cost can be decomposed of operating cost included labor, energy consumption cost for system running, maintenance costs to keep systems healthy, delay cost caused from maintenance and hazard cost, and so on. In this paper, we carried out for railway locomotives which operate over more 30years and which cost about 10 million USD. We decompose the life cycle of the locomotives and break down the locomotives into subsystems to require maintenance or not, and subsystems to need energy or not. We showed how to decide optimal locomotives through cost identification and system breakdown.

• Health Policy and Management
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• v.13 no.3
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• pp.129-147
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• 2003

This study is to grasp a trend of profitability classified by characteristics of hospitals and to analyze related factors. Subjects are 145 hospitals which have gotten the standardization audit by Korean Hospital Association during 1998-200l. Profitability was measured in the aspect of operation profit rate with operating margin to gross revenue as proxy variables. Independent variables were classified by general factors (ownership, number of beds, period of establishment, competition), financial factors (liabilities to total assets, current ratio, fixed ratio, total asset turnover, inventories turnover), and factors related to patient treatment (average length of stay, bed occupancy rate, new outpatient ratio, admission ratio of outpatients, number of patients per specialist, personnel costs per adjusted inpatient, administrative costs per adjusted inpatient). Hierarchical multiple regression analysis model was used in this study. As a result of hierarchical multiple regression analyzation of operating margin to gross revenue, adjustive $R^2$ of general factors was relatively more powerful. The factors had significant effect on operating margin to gross revenue were ownership(+), number of beds(+), competition(+), current ratio(+), fixed ratio(+), total asset turnover(+), personnel costs per adjusted inpatient(-).

• IE interfaces
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• v.23 no.3
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• pp.221-228
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• 2010

With the development of science and technology, modern submarines are equipped with high technology devices and multi-functioned precise armaments, consequently, acquisition cost as well as maintenance cost of the submarines are getting higher and higher. However, tight defense budget forces navy to significantly reduce military operating and maintenance costs. In this study, the maintenance and operating costs of submarine Jangbogo-II are estimated through M&S (Modeling and simulation) methodologies in order to reasonably and consistently work out the requirement verification system of Jangbogo-II. The maintenance and operating costs of Jangbogo-II along the next 25 years are estimated as 312.65 billion won via engineering analysis methods while 312.69 billion won from PRICE Model, which shows only 0.04 billion won differences as a whole. This study is expected to be able to provide meaningful decision making data for not only short and/or mid term operating planning but military budgeting.

• Nuclear Engineering and Technology
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• v.38 no.6
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• pp.561-574
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• 2006

This study presents the results of an economic analysis for a comparison of the single layer and double layer alternatives with respect to a HLW-repository. According to a cost analysis undertaken in the Korean case, the single layer option was the most economical alternative. The disposal unit cost was estimated to be 222 EUR/kgU. In order to estimate such a disposal cost, an estimation process was sought after the cost objects, cost drivers and economic indicators were taken into consideration. The disposal cost of spent fuel differs greatly from general product costs in the cost structure. Product costs consist of direct material costs and direct labor and manufacturing overhead costs, whereas the disposal cost is comprised of construction costs, operating costs and closure costs. In addition, the closure cost is required after a certain period of time elapses following the building of a repository.

• Journal of the Korean Society for Railway
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• v.19 no.1
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• pp.77-86
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• 2016

Before urban railway vehicles reach their design life-span, operating agencies should determine when to buy new vehicles. Previous LCC (Life Cycle Cost) studies were limited because they independently focused on existing vehicles based on costs that directly impacted only the operating agency without considering effects such as social costs and the reduction of maintenance costs. Thus, it is difficult to systematically determine when to buy new vehicles. This study investigated the operating and maintenance related costs, especially from additional expenses and social costs due to unexpected vehicle failures and safety accidents, and did an economic analysis of scenarios with different discount rates. Considering that the public is very concerned about safety after the Sewol ferry accident, additional costs, which include social costs, should be included in the analysis. This study shows that the economic priority of scenarios may change depending on whether those costs are included and on the discount rate. The results of this study can help in the decision-making process for the planning and buying of new trains.