• Korea Journal of Hospital Management
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• v.8 no.3
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• pp.118-142
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• 2003

This study is aimed at evaluating the financial structure of hospitals before and after the separation of prescription and drug dispensing policy started to be implemented in July 2000 and at making a suitable hospital managerial strategy through the verification of the factors which have effect on their profitability. This study investigated the hospitals which have passed the accredition review to be designated as a accredited training hospital each year for three years from 1999 to 2001. Those hospitals were selected from members of the Korea Hospital Association. 106 hospitals were targeted for analysis except for the hospitals whose financial statements and managerial performance were not reported faithfully. The financial indicators used in this study were stability indicators(liability to total assets, ratio of debt to fund balance, fixed ratio), liquidity indicators(current ratio, quick ratio), activity indicators(total assets turnover, fixed assets turnover), profitability indicators(net profit to total assets, net profit to net worth, operating margin), and operating expenses to patient revenues indicators(drug and supplies costs/payroll/overhead expenses). The result of this study are as follows: First, the analysis of the increase of loss-making hospitals before and after. The separation of prescription and drug dispensing policy shows that the number of loss-making hospitals increase after the separation(22.6% before the separation; 31.1% after the separation). However, there was no significant statistical difference. Second, the analysis of operating expenses to patient revenues indicators showed that the ratio of drug and supplies cost became lower in all hospitals but the ratio of payroll/overhead expenses became higher. Additionally, the factor which have the greatest effect on profitability was operating expenses to patient revenues indicators (drug and supplies costs/payroll/overhead expenses). Third, the analysis of managerial performance by four types of loss-loss, loss-profit, profit-loss and profit-profit compared the results before the separation with those after the separation revealed as follows : Reliance on liability to total assets became higher in the profit-loss type($56.2%{\rightarrow}66.4%$), lower in the loss-profit type($82.7%{\rightarrow}74.5%$). Total assets turnover became higher in the profit-profit type($1.3{\rightarrow}1.5$), but lower in the loss-profit type($0.8{\rightarrow}0.7$). Operating margin decreased to minus 5.9% from 4.3% in the profit-loss type, but increased to 7.2% from minus 7.8% in the loss-profit type. Forth, operating expenses to revenues indicators showed that the increase of payroll was the biggest in the profit-loss type($39.2%{\rightarrow}49.9%$) and that overhead cost decreased in the loss-profit type but that rather increased in other types.

• Food Quality and Culture
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• v.1 no.1
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• pp.58-61
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• 2007

The purpose of this study was to develop an effective cost control model for university foodservice operations by analyzing student satisfaction, as well as foodservice income statements for operational characteristics. The specific objectives were to examine the satisfaction of students for various foodservice quality dimensions, to determine the financial activities performed in foodservice operations by operational type, to examine their income statement data, and lastly, to compare the student satisfaction for foodservice quality with the financial data of the income statements. A total of 545 students from one university answered a satisfaction survey. The one-year income statements of three union foodservices (self-operated, small-scale contracted, and large-scale contracted) at the same university were analyzed. The results showed that the self-operated union foodservice had lower student satisfaction scores and higher food and labor cost ratios. The small-scale contract management foodservice data indicated the highest student satisfaction scores and the lowest food and labor cost ratios. The large-scale contract management foodservice data showed medium scores when comparing the three union foodservice operations. Overall, by comparing the satisfaction scores and operational profits, the small-scale union foodservices showed the highest satisfaction scores and profit.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.6 no.1
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• pp.144-155
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• 1996

During the 1990s the workplace has grown more complex and business competition has increased world-wide. All organizations, whether for-profit or non-profit have been forced to respond to market changes. More advanced information and technology, greater product diversity, shorter product life cycles, increased quality requirements, more regulation oversight, decreasing productivity, more competitors, and increasing overhead costs have motivated organizations to focus on ways to deliver products cheaper, better, and faster. Many organizations are searching for ways to reduce costs through downsizing, reengineering business processes, implementing quality management, outsourcing, and improving cost management. Support departments that provide services internal to an organization such as human resources, legal, and environmental, safety, and health (ES&H) are often the first organization targeted for cost reduction and cost control initiatives because these functions are part of a rapidly increasing overhead cost. Recently, ES&H functions are incresingly being integrated into the business of business to contribute value to organization beyond mere compliance with ES&H regulations. The discussions and development of the ISO compatible Environmental Management Standards or Occupational Safety and Health Management Standards is another impetus to integrate ES&H function into the business of business. Thus, ES&H professional need new skills to analyze the cost of their function and communicate the value of the products and services they provide. In recent years, the need for and the importance developing cost management and business skills by ES&H professionals have been emphasized in the literature. Communicating with decision makers in terms of cost and value to the organization, and by using business language and business arguments is the first step toward effectively integrating ES&H activities into the business of business. Activity-based costing (ABC) is a cost management method that measures the cost of a product or service based on the actual use of resources by activities, and based on the actual amount of activities used to produce a product or service. ABC is recommended as a tool for managers of ES&H organizations to determine the cost of developing and providing ES&H products within a for-profit firm or non-profit agency. This paper discusses the trend of integration of ES&H functions into the mainstream of business activities within an organization. The general principles of treditional cost accounting are presented as a bases for understandging why and how ABC will provide more accurate estimates of cost. The principles and concepts of ABS are presented as a tool for determining more accurately the true cost of ES&H products and services.

• IE interfaces
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• v.4 no.1
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• pp.35-46
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• 1991

The purpose of this paper is to present how to prepare pro forma manufacturing cost, and profit and loss statements using the historical data of the industry to which the project under consideration belong to. This approach is proposed because it is relatively simple compared with possible alternative methods. The approach proposed here can be used in countries other than Korean if relevant historical data is available. An example is shown.

• Journal of the Korea Safety Management & Science
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• v.8 no.3
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• pp.125-141
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• 2006

If do not become whole optimization because enterprise's individual enterprise internal determinate improvement effort is associated with activity in enterprise SCM, competitive power can not but be extremely limited the result. Therefore, to spur in hidden cost's discovery and logistics' optimization is actuality. In this paper, as long as it is by logistics cost except empty driving if reverse logistics happens in distribution channel progressing, logistics reverse logistics' hidden cost through model that do minimization profit of logistics to look for plan that can do maximization try. Finally, is based on dual of distribution cost and profit of logistics and reverse logistics and achieves Pull, optimal system modeling that use Push system and gropes method of effective logistics cost.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.7
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• pp.1205-1210
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• 2007

Several mechanisms are introduced for the procurement of capacity adequacy. In the competitive electricity market, however, it is a GENCO that makes generation investment decision. A GENCO will invest a new generator when it can get more profit than cost. There requires a model to evaluate profit with respect to a new generation investment. In the view of long-term investment, evaluation of a profit of a generator in the electricity market is quite different from that of short-term operation. In this paper, a new profit-evaluation model is proposed for the long-term generation investment. It can treat the probabilistic characteristics of generators, ie, forced-outage-rates, which affect profit of generators.

• Culinary science and hospitality research
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• v.11 no.3 s.26
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• pp.151-165
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• 2005

The current study aims to help field managers of companies providing foodservice for institutions to establish the more appropriate cost management strategy by analyzing the cost structure of foodservice center in institutions by operating types and the number of people served. From the result analyzing 161 foodservice centers, the number of factories was highest with 39.8% while offices 26.7%, schools 20.5%, and hospitals 13%. In terms of the number of people served, below 500 persons was 27.6%, 501${\sim}$l,000 persons was 23.9%, 1,001${\sim}$2,000 persons was 22.7%, and over 2,001 persons was 25%. In the demographic characteristics of managers, women occupied over 92%. The reason for this is usually dieticians perform management duties. For the age of workers, 70.8% were older than 40s, which ran become the cause of a rise in cost by causing the decrease of productivity by aging. Therefore, appropriate countermeasures are required. In case of workers in production, women occupy 962 persons (82.2%) rating absolute majority like mangers. This is because cooks are in charge of almost every producing activity of meal facilities. In addition, more than 72.9% of workers in production were over 40 years old, which requires diversified studies to promote efficiency of production associated with the aging problem. In proportion of sales compared with cost material cost presented the highest percentage with 54.5% while labor cost 28.3%, general expenses 9.6% and business profit 7.6%.

• Journal of Korean Clinical Health Science
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• v.3 no.1
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• pp.276-289
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• 2015

Purpose. To efficiently manage hospitals, this study aims to analyze the general characteristics, common-type balance sheet, common-type profit and loss statement and financial ratio of a tertiary general hospital and use the results as basic data for future hospital development by comprehending causes for problems and analyzing hospital management. Methods. By using information about a tertiary general hospital, located in A Metropolitan City, provided through Alio (www.alio.go.kr), a public organization information provider, Health Insurance Review & Assessment Service, and Ministry of Health and Welfare, this study used data during 3 years(2011 to 2013) by analyzing the general characteristics, common-type balance sheet, common-type profit and loss statement, industrial mean ratio and financial ratio of hospitals. Results. This study came to the following conclusions through the general characteristics, common-type balance sheet, common-type profit and loss statement, industrial mean ratio, financial ratio, circular chart and ROI by analyzing the data from 2011 to 2013. Conclusions. Overall, A Tertiary General Hospital showed an increase in fixed cost due to the construction of J Hospital and even in the size of capital and assets. It also showed an increase in medical profit, but the increase of its medical cost was higher, resulting in a financial loss. Especially, this hospital showed a slight decrease in net profit, featuring a reduction in inventory turnover. When the management of A Tertiary General Hospital was predicted based on such features, this hospital is expected to improve its profit structure through the opening of J Hospital, and it is necessary for this hospital to increase and sustain the turnover rate of inventories accumulated by managing them better.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.1
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• pp.313-320
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• 2021

This study develops a demand and supply model and price model for Miryang sesame leaf cultivation and predicts the optimal production level to maximize total profit for Miryang sesame leaf farms. We used time series data from 1996 to 2017, which are related to Miryang sesame leaf cultivation. For the analysis, we estimated the demand function and average cost function, calculated the optimal production level and price, and derived the optimal profit. In addition, we predicted the optimal production level, price, total revenue, total cost, and profit until the year 2030 through scenario analysis. The results show that the optimal production level until the year 2030 is between 10 and 12.5 thousand tons, while the production volume was 7 thousand tons in 2017, and total profit for Miryang sesame leaf farms is estimated at 13.3 to 21.3 billion Korean won in 2030. The producer group needs to maintain the optimal production level to maximize total profit for farmers, as suggested in this study.

• Korean Chemical Engineering Research
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• v.52 no.5
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• pp.564-573
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• 2014

Economic optimization of cumene manufacturing process to produce cumene from benzene and propylene was studied. The chosen objective function was the operational profit per year that subtracted capital cost, utility cost, and reactants cost from product revenue and other benefit. The number of design variables of the optimization are 6. Matlab connected to and controlled Unisim Design to calculate operational profit with the given design variables. As the first step of the optimization, design variable points was sampled and operational profit was calculated by using Unisim Design. By using the sampled data, the estimation model to calculate the operational profit was constructed, and the optimization was performed on the estimation model. This study compared second order polynomial and support vector regression as the estimation method. As the sampling method, central composite design was compared with Hammersley sequence sampling. The optimization results showed that support vector regression and Hammersley sequence sampling were superior than second order polynomial and central composite design, respectively. The optimized operational profit was 17.96 MM$ per year, which was 12% higher than 16.04 MM$ of base case.