Implementing effective cost management approaches has recently gained momentum due to intense competition and increasing customer demands. Moreover, effective cost management approaches have contributed to firms＇ com...Implementing effective cost management approaches has recently gained momentum due to intense competition and increasing customer demands. Moreover, effective cost management approaches have contributed to firms＇ competitive advantage in relation to cost leadership strategy. Consequently, firms have implemented contemporary cost management systems, such as activity-based management, business process re-engineering, life-cycle costing, target costing, and theory of constraint （TOC）, to enable them to become low-cost producers and compete effectively and sustain their performance. Furthermore, focusing on cost management to improve profitability has led to the integration of activity-based costing （ABC） and TOC. Therefore, the aim of this study is to review literature and discuss how integration of ABC and TOC can result in improved and sustained cost management. While these methods have different approaches in addressing cost management, treating them as complementary cost management approaches can result in improved cost management due to improved product costing, improved cost reporting, improved product-mix decisions, and improved cycle-time management. Improvement in cost management will then result in sustained cost management. Sustained cost management is further enhanced with the investment in information customer and shareholder value technology that supports cross-functional decision making to continue creating to remain competitive in the market.展开更多
Product quality and operation cost control obtain increasing emphases in modern chemical system engineering. To improve the fault detection power of the partial least square (PLS) method for quality control, a new QRP...Product quality and operation cost control obtain increasing emphases in modern chemical system engineering. To improve the fault detection power of the partial least square (PLS) method for quality control, a new QRPV statistic is proposed in terms of the VP (variable importance in projection) indices of monitored process variables, which is significantly advanced over and different from the conventional Q statistic. QRPV is calculated only by the residuals of the remarkable process variables (RPVs). Therefore, it is the dominant relation between quality and RPV not all process variables (as in the case of the conventional PLS) that is monitored by this new VP-PLS (VPLS) method. The combination of QRPV and T2 statistics is applied to the quality and cost control of the Tennessee Eastman (TE) process, and weak faults can be detected as quickly as possible. Consequently, the product quality of TE process is guaranteed and operation costs are reduced.展开更多
This paper presents a description and analysis of the most important models to predict each of the Road User Costs components （Vehicle Operating Costs, Accident Costs and Value of Time） and proposes a model for esti...This paper presents a description and analysis of the most important models to predict each of the Road User Costs components （Vehicle Operating Costs, Accident Costs and Value of Time） and proposes a model for estimating RUC components suitable for the Portuguese road network. These results are part of a research which aimed to obtain a Road User Cost Model to be used as a tool in road management systems. This model is different from other models by the fact that it includes a simple formulation that allows calibration and calculation of cost parameters, for any year, in a simple and fast way, providing trustworthy results. The required data is already available in Portuguese institutions, allowing periodic revision of cost parameters to insure accuracy.展开更多
That budget estimate exceeds estimate, budget exceeds budget estimate, and actual budget exceeds budget usually exists in the management of construction project cost, suggesting the cost management and control of cons...That budget estimate exceeds estimate, budget exceeds budget estimate, and actual budget exceeds budget usually exists in the management of construction project cost, suggesting the cost management and control of construction project are not the management and control of product cost in a general sense. In terms of construction project, cost management and control is the core of the project and is implemented throughout all stages of the project, so it is complicated system engineering. In this paper, construction project cost composition and its management measures are mainly discussed.展开更多
Congestion management in an electricity market is introduced in this paper and a new method of allocating congestion cost to transactions is proposed. The proposed method is a two-step process, in which the total cong...Congestion management in an electricity market is introduced in this paper and a new method of allocating congestion cost to transactions is proposed. The proposed method is a two-step process, in which the total congestion cost is firstly allocated to congested facilities and then to each transaction involved. The cost of relieving a congested facility allocated to each transaction is proportional to the power flow change on the congested facility caused by the transaction. The more the power flow change is on the congested facility caused by the transaction, the deeper the degree of involvement by the transaction. Therefore, cutting down the magnitudes of such transactions contributes to relieving congestion. Test results on a 5-bus system indicate that the proposed method can reflect reasonably the degree of involvement by each transaction in the congestion and provide correct price signals contributing to relieving congestion.展开更多
Road transport is a flexible mode of transport and its importance in era of globalization increases. Management of road transport companies is, in this turbulent environment, exposed to many technical, legislative, an...Road transport is a flexible mode of transport and its importance in era of globalization increases. Management of road transport companies is, in this turbulent environment, exposed to many technical, legislative, and economic problems. Especially, the growing economic pressure leads to an urgent requirement of the manager and control system improvement. Activity-based costing （ABC） method is a very powerful tool to improve products, services, processes, and market strategies. ABC allows company management to understand what causes costs and how to manage them. Company under this scheme may get a glimpse of how efficiently a company converts the source value. The main objective of our research was to assess the possibility of application of the ABC method in a transport undertaking. ABC method as a fundamentally different view on the cost in the transport business helps to find the reasons of cost and thereby influences their levels to make better use of resources.. New managerial accounting methods aim to show management what information is needed, how and where this information can be obtained, and how they can be useful for the management of the company＇s proper planning, decision-making, and control. Information provided by management accounting is often a key factor in the analysis of alternative ways of solving problems. This article focuses on the transport enterprise management and helps to decide on the use of this method in business practice.展开更多
文摘Implementing effective cost management approaches has recently gained momentum due to intense competition and increasing customer demands. Moreover, effective cost management approaches have contributed to firms＇ competitive advantage in relation to cost leadership strategy. Consequently, firms have implemented contemporary cost management systems, such as activity-based management, business process re-engineering, life-cycle costing, target costing, and theory of constraint （TOC）, to enable them to become low-cost producers and compete effectively and sustain their performance. Furthermore, focusing on cost management to improve profitability has led to the integration of activity-based costing （ABC） and TOC. Therefore, the aim of this study is to review literature and discuss how integration of ABC and TOC can result in improved and sustained cost management. While these methods have different approaches in addressing cost management, treating them as complementary cost management approaches can result in improved cost management due to improved product costing, improved cost reporting, improved product-mix decisions, and improved cycle-time management. Improvement in cost management will then result in sustained cost management. Sustained cost management is further enhanced with the investment in information customer and shareholder value technology that supports cross-functional decision making to continue creating to remain competitive in the market.
文摘Product quality and operation cost control obtain increasing emphases in modern chemical system engineering. To improve the fault detection power of the partial least square (PLS) method for quality control, a new QRPV statistic is proposed in terms of the VP (variable importance in projection) indices of monitored process variables, which is significantly advanced over and different from the conventional Q statistic. QRPV is calculated only by the residuals of the remarkable process variables (RPVs). Therefore, it is the dominant relation between quality and RPV not all process variables (as in the case of the conventional PLS) that is monitored by this new VP-PLS (VPLS) method. The combination of QRPV and T2 statistics is applied to the quality and cost control of the Tennessee Eastman (TE) process, and weak faults can be detected as quickly as possible. Consequently, the product quality of TE process is guaranteed and operation costs are reduced.
文摘This paper presents a description and analysis of the most important models to predict each of the Road User Costs components （Vehicle Operating Costs, Accident Costs and Value of Time） and proposes a model for estimating RUC components suitable for the Portuguese road network. These results are part of a research which aimed to obtain a Road User Cost Model to be used as a tool in road management systems. This model is different from other models by the fact that it includes a simple formulation that allows calibration and calculation of cost parameters, for any year, in a simple and fast way, providing trustworthy results. The required data is already available in Portuguese institutions, allowing periodic revision of cost parameters to insure accuracy.
文摘That budget estimate exceeds estimate, budget exceeds budget estimate, and actual budget exceeds budget usually exists in the management of construction project cost, suggesting the cost management and control of construction project are not the management and control of product cost in a general sense. In terms of construction project, cost management and control is the core of the project and is implemented throughout all stages of the project, so it is complicated system engineering. In this paper, construction project cost composition and its management measures are mainly discussed.
文摘Congestion management in an electricity market is introduced in this paper and a new method of allocating congestion cost to transactions is proposed. The proposed method is a two-step process, in which the total congestion cost is firstly allocated to congested facilities and then to each transaction involved. The cost of relieving a congested facility allocated to each transaction is proportional to the power flow change on the congested facility caused by the transaction. The more the power flow change is on the congested facility caused by the transaction, the deeper the degree of involvement by the transaction. Therefore, cutting down the magnitudes of such transactions contributes to relieving congestion. Test results on a 5-bus system indicate that the proposed method can reflect reasonably the degree of involvement by each transaction in the congestion and provide correct price signals contributing to relieving congestion.
文摘Road transport is a flexible mode of transport and its importance in era of globalization increases. Management of road transport companies is, in this turbulent environment, exposed to many technical, legislative, and economic problems. Especially, the growing economic pressure leads to an urgent requirement of the manager and control system improvement. Activity-based costing （ABC） method is a very powerful tool to improve products, services, processes, and market strategies. ABC allows company management to understand what causes costs and how to manage them. Company under this scheme may get a glimpse of how efficiently a company converts the source value. The main objective of our research was to assess the possibility of application of the ABC method in a transport undertaking. ABC method as a fundamentally different view on the cost in the transport business helps to find the reasons of cost and thereby influences their levels to make better use of resources.. New managerial accounting methods aim to show management what information is needed, how and where this information can be obtained, and how they can be useful for the management of the company＇s proper planning, decision-making, and control. Information provided by management accounting is often a key factor in the analysis of alternative ways of solving problems. This article focuses on the transport enterprise management and helps to decide on the use of this method in business practice.
