• Title/Summary/Keyword: production costs

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In-situ Production Effect Analysis of Precast Concrete Elements (PC 부재의 현장 생산효과 분석)

  • Lee, Dong-Joo;Oh, Jin-Hyuck;Kim, Sun-Kuk
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2021.11a
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    • pp.52-53
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    • 2021
  • PC (Precast Concrete) method was preferred for reasons such as shortening of construction period, cost reduction, and quality. However, in the case of factory production, precast concrete has a problem in that transportation conditions in the transportation process, damage during transportation, overhead and profit of the factory are required. If work and PC members are produced on site, transportation and installation costs can be reduced. However, research on field production has not been conducted. Therefore, based on the on-site production plan without PC, the cost and quality of factory production and on-site production are compared and analyzed.

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A Study on the Optimal LCC using AMSAA Model (AMSAA Model을 이용한 최적 LCC에 관한 연구)

  • Kim, Jun-Hong
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.29 no.3
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    • pp.135-142
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    • 2006
  • Engineers are always concerned with life cycle costs for making important economic decisions through engineering action like reliability of products. Decisions during the reliability growth development of products involve trade-offs between invested costs and its returns. In order to find minimal LCC containing the reliability improvement cost, production cost, repair and replacement costs, and holding cost of spare parts for failure items we suggest in this paper relationship between development cost and sustaining cost in values of growth parameter $\beta$ of AMSAA model. This model is applied to the reliability growth program based on AMSAA model during R&D phase, the warranty activities of items and the block replacement policy for maintenance of items in avionic equipment.

Energy Efficiency & Sustainability - the Cleanliness Management Role of Components and System in Automotive and Hydraulics

  • Day, Mik;Hong, Jeong-Hee
    • Journal of Drive and Control
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    • v.9 no.2
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    • pp.46-53
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    • 2012
  • This paper explains how eliminating contamination from the manufacturing processes will lead to better product quality and hence the need for reworking, a trouble free commissioning period and greatly improved production efficiency. All of these will reduce costs and energy usage. It will also ensure that the product is delivered to the customer in a condition that will ensure improved reliability and longer life, again reducing both energy and other operating costs. Correctly designing the contamination control measures will achieve and maintain the level of fluid cleanliness that is required by the end user. The filter is critical to cleanliness management and should be selected with the same degree of thought and consideration as for other major components. This paper explains the role that Cleanliness Management plays in the reducing the carbon footprint of systems and processes by making them perform more efficiently for longer periods. It also examines two differing ways of selecting filters to incorporate the features of newer designs, and shows how significant savings in the costs of ownership can be achieved using these approaches.

A study on the Efficient Improvement of Meal cost Management in Elementary School Foodservice - A comparison of commissary with conventional school foodservice systems - (학교급식비 관리의 효율적 개선을 위한 연구 - 공동조리 및 단독조리 급식학교의 비교 -)

  • Choe, Eun-Hui;Lee, Jin-Mi;Gwak, Dong-Gyeong
    • Journal of the Korean Dietetic Association
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    • v.1 no.1
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    • pp.54-65
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    • 1995
  • Commissary school foodservice system has been expanded rapidly in elementary foodservices in Korea. Therefore, it is essential that cost effectiveness should be assessed by comparing between alternative systems. The objectives of this study were to assess the effects on meal costs of foodservice systems and other school characteristics in terms of meal costs/day per 1 person ; to examine financial management practices and dietitians' perception concerning importance of school foodservices financial management. A total of 16 commissary schools in nationwide and 102 conventional schools at Chungnam province and Seoul were participated in this survey by mails. The results are as follows 1. Average meal costs per one person was 1,232.6 won evaluated on the standards of monthly budget basis on June, 1994. Average food costs per one person was 836.1 won(67.83%), average labor cost was 320.1 won(25.97 %) and operation costs was 76.3 won(6.2 %). 2. Average meal costs per one person did not show any significant difference between commissary and conventional foodservice schools. Meal costs of the island type and the rural type were significantly higher than those of the urban type. Meal costs of schools in Chungnam and other province were higher than schools in Seoul. The schools with less than 200 feeding numbers were higher than the schools more than 201 in meal costs per one person. 3. Food costs per one person were higher in the urban type, especially in Seoul, as the scale of feeding number increased. Labor costs and operational costs were increased in island type as well as in the schools of small feeding numbers. 4. Foodservice teachers, not dietitians were in charge of foodservice duties at the 75 % of satellites. Dietitians participated in the satellite foodservice duties were only averaged at 2.19 visits per month of 20 feeding days. 5. Items which influenced by food costs per person at the step of foodservice production were purchasing method, the perception of inventory, the distributor for foodservice, and usage of standardized recipes.

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A Proposal for the Improvement Method of Order Production System in the Display Industry (디스플레이산업에서 수주생산방식의 개선 및 효율화 제고 방안)

  • Cho, Myong Ho;Cho, Jin Hyung
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.39 no.4
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    • pp.106-116
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    • 2016
  • MTO (Make to Order) is a manufacturing process in which manufacturing starts only after a customer's order is received. Manufacturing after receiving customer's orders means to start a pull-type supply chain operation because manufacturing is performed when demand is confirmed, i.e. being pulled by demand (The opposite business model is to manufacture products for stock MTS (Make to Stock), which is push-type production). There are also BTO (Build to Order) and ATO (Assemble To Order) in which assembly starts according to demand. Lean manufacturing by MTO is very efficient system. Nevertheless, the process industry, generally, which has a high fixed cost burden due to large-scale investment is suitable for mass production of small pieces or 'mass customization' defined recently. The process industry produces large quantities at one time because of the lack of manufacturing flexibility due to long time for model change or job change, and high loss during line-down (shutdown). As a result, it has a lot of inventory and costs are increased. In order to reduce the cost due to the characteristics of the process industry, which has a high fixed cost per hour, it operates a stock production system in which it is made and sold regardless of the order of the customer. Therefore, in a business environment where the external environment changes greatly, the inventory is not sold and it becomes obsolete. As a result, the company's costs increase, profits fall, and it make more difficult to survive in the competition. Based on the customer's order, we have built a new method for order system to meet the characteristics of the process industry by producing it as a high-profitable model. The design elements are designed by deriving the functions to satisfy the Y by collecting the internal and external VOC (voice of customer), and the design elements are verified through the conversion function. And the Y is satisfied through the pilot test verified and supplemented. By operating this make to order system, we have reduced bad inventories, lowered costs, and improved lead time in terms of delivery competitiveness. Make to order system in the process industry is effective for the display glass industry, for example, B and C groups which are non-flagship models, have confirmed that the line is down when there is no order, and A group which is flagship model, have confirmed stock production when there is no order.

Analysis of Management Efficiency for Abalone Seed Producer based on DEA Approach (DEA를 이용한 전복종자 생산업체의 경영효율성 분석)

  • Oh, Ye-Jin;Lee, Nam-Su;Kim, Dae-Young
    • The Journal of Fisheries Business Administration
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    • v.51 no.1
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    • pp.37-52
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    • 2020
  • The production of abalone seed has grown and been specialized since the 2000s with the growth of the abalone farming industry. Despite the increase in the production of abalone seeds, the sales volume of abalone seeds remained flat and competition among producers increased. This paper will analyze the management efficiency of abalone seed production fishery to diagnose the management status and improve the abalone seed production efficiency. In addition, this study is the result of the basic research on the abalone seed industry and it is meaningful to prepare a platform for further research since the management status survey and the management efficiency survey of abalone seed production fishery have not been conducted until now. The data on the farmed fish prices of abalone seeds were collected from surveys of sample fish as part of the fish seed observation project conducted by the Fisheries Outlook Center (FOC) of Korea Maritime and Fisheries Development Institute (KMI). Management efficiency analysis utilizes DEA (Data Envelopment Analysis) model. The DEA model was analyzed by classifying into CCR (Super-CCR), BCC, and SBM (Super-SBM) models according to the assumptions taking into account the characteristics of the industry. The slack considered in the SBM model was judged as possible decreases in input variables and increase in output variables. The average efficiency from the CCR model was analyzed to be 69%. The BCC model was classified into input and output orientations, and the average efficiency was 79% and 75%, respectively. There were seven production fisheries with an SE value of 1 or more, which remained unchanged in terms of size and could be benchmarked. The average efficiency of the SBM model was 59% for CRS and 66% for VRS. Under the VRS assumptions, the variable increase/decrease efficiency analysis shows that labor costs can be reduced by 37.3%, facility capacity by 18.8%, and operating costs by 8.5%. In order to improve management efficiency, Wando needs to reduce labor and management costs. In Jindo region, sales increase as well as labor cost reduction is urgent. In other regions, reduced facilities and increased sales are recommended.

Effectiveness of an Exponentially Smoothed Ordering Policy as Compared with Kanban System

  • Tamura, Takayoshi;Dhakar, Tej S.;Ohno, Katsuhisa
    • Journal of Korean Institute of Industrial Engineers
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    • v.34 no.1
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    • pp.1-12
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    • 2008
  • The Kanban system in Just-In-Time (JIT) production is very effective in reducing the inventories when consumption rate of the final product is relatively stable. When large fluctuations exist in the consumption rate, a new production ordering policy in which the production order quantity is determined by smoothing the demands exponentially is more suitable. This new ordering policy has not been investigated sufficiently. In this research, a multi-stage production and inventory system with stock points for materials and finished items located at each stage is considered. Approximations of average inventories at each stage in the system are derived theoretically. Numerical simulations are carried out to assess the accuracy of approximations and to evaluate the effectiveness of the new ordering policy as compared with the Kanban system. As a result, it is shown that the new ordering policy can achieve significantly lower inventory costs than the original Kanban system. The new ordering policy thus emerges as a key concept for an effective supply chain management.

Economic Selection of the Lower Limit and the Process Mean for a Continuous Production Process (연속생산공정에서 규격하한과 공정평균의 경제적 설정)

  • Hong, Sung-Hoon;Lim, Hoon
    • Journal of Korean Society for Quality Management
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    • v.23 no.3
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    • pp.20-32
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    • 1995
  • This paper is concerned with the economic selection of both the lower limit and the process mean for a continuous production process. Consider a production process where items are produced continuously. All of the items are subject to acceptance inspection. The items for which the measured values of the quality characteristic are larger than the lower limit are accepted, and those smaller than the lower limit are rejected and excluded from shipment. The process mean may be set higher to reduce the costs incurred by imperfect quality. Using a higher process mean, however, results in a higher production cost when production cost is an increasing function of the quality characteristic. Assuming that the quality characteristic is normally distributed with known variability, cost models are constructed which involve production cost, cost incurred by imperfect quality, rejection cost, and inspection cost. Methods of finding optimal values of the lower limit and the process mean are presented and numerical examples are given.

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Development of Heat Exchanger Production Model Based on the Microlamination Technology and Estimation of its Economic Efficiency (마이크로 적층기술을 이용한 열교환기 생산모델 개발과 경제성 평가)

  • Ryuh, Beom-Sahng;Kim, Jae-Hee;Park, Sang-Min
    • Transactions of the Korean Society of Machine Tool Engineers
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    • v.15 no.3
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    • pp.97-103
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    • 2006
  • The development of a heat exchanger production model based on the microlamination technology and it's economic efficiency is addressed. A microchannel production model is proposed for the high-volume production. The microlamination system is made up of lamina patterning, laminae sorting and laminae bonding. A cost estimation model is developed based on the hewn cycle time and capital equipment costs. An economic efficiency analysis is performed to determine the cost drivers under the different market and product scenarios. The result of the economic efficiency analysis indicated that the device size and the production rate have a great effect on the overall manufacturing cost of microlamination devices. And it can be concluded that the microlamination should focus on bonding larger laminae and reducing both cycle time and warpage.

The Added-Value Metric - A Complementary Performance Measure for Six Sigma and Lean Production

  • Setijono, Djoko;Dahlgaard, Jens J.
    • International Journal of Quality Innovation
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    • v.8 no.1
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    • pp.1-14
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    • 2007
  • The Six Sigma and Lean Production methodologies suggest that creating value for customers is the objective of a production process or an organisation. In the production context, "added value" dominates the discussion about the creation of value to customers. However, "added value" is often only defined conceptually or discussed at a strategic level, and the link between added value and customer value has not yet been well conceptualised. Therefore, the purpose of the paper is to develop a methodology to measure added value in order to complement the existing performance measures in Six Sigma and Lean Production by conceptualising the link between customer value and added value. The conceptual link "confirms" that quality, time, and costs are the elements of added value, which are transformed into a metric to express customer value. The implementation of the metric recommends the adoption of Lean (Six) Sigma and Lean Accounting (Activity Based Costing), which thus implies that "leanness" is an important "feature" of added value.