• Proceedings of the Korean Society of Precision Engineering Conference
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• 2004.10a
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• pp.1456-1461
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• 2004

Companies of Build-to-Order(BTO) strive to achieve customer responsiveness and cost efficiency simultaneously. The success of BTO depends upon the high volume production based on product plat form and delayed differentiation principle on the one hand, and upon the rapid estimation of delivery and cost for the customer orders on the other hand. Expeditious processing of a specific order requires the rearrangement of production resources and the schedule, which results in increased cost. This paper describes a cost estimation method using activity-based costing depending on the schedule change caused by urgent customer orders.

• IE interfaces
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• v.18 no.4
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• pp.477-484
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• 2005

This paper is concerned with the life-cycle cost(LCC) of the urban transit system which was developed by KRRI and is now under test in Gyeongsan, Korea. Its reliability, availability and maintainability(RAM) were analyzed. LCC is the core part of analyzing the total cost of acquisition and ownership of a system. LCC analysis of a system is the most effective when it is applied in the it's early design phase. In this paper, we present IEC 60300-3-3(Life Cycle Costing) in detail and propose how to apply LCC in assessing the urban transit system according to RAM process. This case study demonstrates that reliability management system is very effective in reducing the operating cost of subway corporations in Korea.

• IE interfaces
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• v.20 no.3
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• pp.395-406
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• 2007

In the telecommunication industry, estimation of the cost of network facilities is very important since depreciation cost of the facilities accounts for a large portion of the product cost. Moreover, cost estimation in the industry becomes more difficult because of increasing indirect cost upon digital convergence, expanding multi-purpose facilities, complexity of service product, etc. Nevertheless, not much seem to have been done in improving estimation methodology of the cost of network facilities. As a result, the quality of cost information on network facilities has deteriorated, and now even decision-makers in the industry dismiss the information. Recently, two major telecommunication companies adopted a new network cost estimation method to deal with the issue. In this paper, we study the concept of new cost estimation method and the procedure to develop and apply it. We also suggest the method to carry out the cost allocation using Matlab which is more efficient and time-saving than other commercial cost calculation packages.

• Korean Management Science Review
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• v.17 no.2
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• pp.115-124
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• 2000

Activity-Based Costing(ABC) is an accounting cost system which allocates the overhead cost to each cost object more accurately. ABC system achieves improved accuracy in estimating the cost of cost object by using multiple cost drivers to trace the cost of activities to the cost objects associated with the resources consumed by those activities. The selection and the aggregation of these cost driver candidates can pose difficult problems. This paper deals with these problems in mathematical programming approach. The first model is formulated as an integer programming model in cost driver selection and the second model is formulated as multi-objective goal programming model in reduction of cost drivers already selected.

• Proceedings of the KIEE Conference
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• 1989.07a
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• pp.207-210
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• 1989

In probabilistic production costing simulation, cumulant method is widely used. But this method have some limitations in some cases. To overcome these serious drawbacks, MONA(Mixture of Normals Approximation) method was proposed. The MONA method uses multiple normals to represent the Equivalent Load Duration Curve. In this paper we investigate the MONA's characteristics by comparing other methods and derive the efficient formulae for MONA. Also, we propose the fundamental algorithm for Mixture of Cumulants Approximation(MOCA) which is the general case of MONA.

• Proceedings of the KSR Conference
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• 2007.11a
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• pp.777-783
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• 2007

Life cycle costing is one of the most effective cost approaches when we choose a solution from series of alternative so the least long-term cost ownership is achieved. Life cycle costing in railway industry has been focused on the prediction of investment for railway vehicles. But in today, the life cycle cost, LCC, prediction on the aspect of operation and maintenance cost through whole life cycle is highly necessary. In this paper, we present a strategy for the development of life cycle cost estimation software on the aspect of maintenance strategies of railway vehicle. For this purpose, we suggested a structure of LCC software based on the UNIFE LCC model. And we developed a pilot version of software to evaluate the LCC model that we suggested for railway vehicle. We performed LCC analysis on the brake module of metro vehicle in case study and concluded that the software and model developed in this research could enough to support engineers in choosing better cost effective solutions from many alternatives.

• Proceedings of the KIEE Conference
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• 1995.11a
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• pp.113-116
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• 1995

In this study, we formulate production costing problem with environmental and operational constraints into an optimization problem of LP form. In the process of formulation, auxiliary constraints on which reflect unit loading order are constructed to reduce the size of optimization problem by economic operation rules. As a solution of the optimization problem in LP form, we use Karmarkar's method which performs much faster than simplex method in solving large scale LP problem. The proposed production costing algorithm is applied to IEEE Reliability Test System, and performs production simulation under environmental and operational constraints. Test and computer results are given to show the accuracy and usefulness of the proposed algorithm in the field of power system planning.

• Journal of Korean Society for Quality Management
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• v.40 no.2
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• pp.106-116
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• 2012

This paper aims to develop the adequate quality cost model at a company which delivers ICT(information communication technology) services. One particular business unit was in the first instance selected and quality costs were then analysed at an organization level, for a department and for specific processes. Some areas were determined for quality improvement at each level and their causes were also investigated. However, the existing PAF(prevention, appraisal and failure) models reveled some limitations because the ICT services company included the different number of large and complicated business processes. The PAF model did not sufficiently highlight the detailed causes of failure costs. It did not also stimulate the relevant department's strong responsibility to improve such problems. Both micro PAF and process cost models were proposed in order to cope with this. In final, it explains the relationship between six sigma and quality costing, suggesting how to use the quality costing results as a means of promoting either continuous improvement or innovation in a case company.

• Journal of the military operations research society of Korea
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• v.6 no.1
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• pp.65-78
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• 1980

The goal of this study is to make the government/users decide rationally with regards to the problems of the weapon systems management. Therefore it is necessary to develop how much precisely and through what methods the system should be cost. That costing policies should be determined under the considerations of the estimating expense and the expected benefit due to the applications of cost informations. After that, it must also be decided where the cost informations are used. We can suggest the cost results be used to find the most reasonable system among alternatives, the best producer, the most benevolent policy for user, and so on.

• Journal of Information Technology Applications and Management
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• v.16 no.3
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• pp.59-71
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• 2009

Hazard analysis identifies probability to hazard occurrence and its potential impact on business processes operated in organizations. This paper illustrates a quantitative approach of hazard analysis of information systems by measuring the degree of hazard to information systems using probabilistic risk analysis and activity based costing technique. Specifically the research model projects probability of occurrence by PRA and economic loss by ABC under each identified hazard. To verify the model, each computerized subsystem which is called a business process and hazards occurred on information systems are gathered through one private organization. The loss impact of a hazard occurrence is produced by multiplying probability by the economic loss.