Role of supply chain management in target costing

Standard costing is used as a control for product costing. But with life cycle becoming shorter, costing should be done at the design and development stage of a product. This is achieved through target costing.The implementation of target costing and target pricing is done with the ultimate purpose of cost reduction, cost understanding, continuous improvement, competitiveness, early purchasing and supplier involvement, and improved design and accountability by manufacturers. The study explores the participation of the purchasing and supply chain management＇s role in target costing and target pricing process. Supply management plays an active role in monitoring the ongoing cost and performance of suppliers during the early stages of product development. Implementation of target costing and target pricing in various organizations are also explored. Leading Japanese manufacturers have used target costing and target pricing systems to their advantage and the paper also examines the adaptation of the Western companies to these proactive cost management techniques to improve their product development processes.

A Fractionated Spacecraft System Assessment Tool Based on Lifecycle Simulation Under Uncertainty

To comprehensively assess fi＇actionated spacecraft, an assessment tool is developed based on lifecycle simulation under uncertainty driven by modular evolutionary stochastic models. First, fractionated spacecraft nomenclature and architecture are clarified, and assessment criteria are analyzed. The mean and standard deviation of risk adjusted lifecycle cost and net present value （NPV） are defined as assessment metrics. Second, fractionated spacecraft sizing models are briefly described, followed by detailed discussion on risk adjusted lifecycle cost and NPV models. Third, uncertainty sources over fractionated spacecraft life- cycle are analyzed and modeled with probability theory. Then the chronological lifecycle simulation process is expounded, and simulation modules are developed with object oriented methodology to build up the assessment tool. The preceding uncertainty models are integrated in these simulation modules, hence the random object status can be simulated and evolve with lifecycle timeline. A case study to investigate the fractionated spacecraft for a hypothetical earth observation mission is carried out with the proposed assessment tool, and the results show that fractionation degree and launch manifest have great influence on cost and NPV, and generally fractionated spacecraft is more advanced than its monolithic counterpart under uncertainty effect. Finally, some conclusions are given and future research topics are highlighted.

DESIGN FOR AVAILABILITY:A HOLISTIC APPROACH TO CREATE VALUE FOR MANUFACTURERS AND CUSTOMERS OF CAPITAL GOODS

This research introduces a holistic framework called Design for Availablhty that uses me principles of Lean Sigma and Design for X to cost-effectively optimize the availability of capital goods （i.e., technical systems used in the production of end-products or -services such as medical systems, airplanes, and manufacturing equipment） throughout their entire lifetime. Manufacturers require such a framework because users of capital goods increasingly insist on high system availability levels against reduced lifetime costs. The Design for Availability framework allows manufacturers to determine the current status of system availability and associated lifetime costs, and to identify opportunities to create additional value for themselves and their customers. A case study at a global manufacturer of capital goods in the food processing industry illustrates how the framework can be used in practice and to what extent the manufacturer and customers may profit from applying Design for Availability.

Optimum insulation thickness of external walls by integrating indoor moisture buffering effect: a case study in the hot-summer-cold-winter zone of China

In the high-humidity, hot-summer-cold-winter(HSCW) zone of China, the moisture buffering effect in the envelope is found to be significant in optimum insulation thickness. However, few studies have considered the effects of indoor moisture buffering on the optimum insulation thickness and energy consumption. In this study, we considered the energy load of an exterior wall under moisture transfer from the outdoor to the indoor environment. An optimum insulation thickness was obtained by integrating the P1-P2model. A residential building was selected for the case study to verify the proposed method. Finally, a comparison was made with two other widely used methods, namely the transient heat transfer model(TH) and the coupled heat and moisture transfer model(CHM). The results indicated that the indoor moisture buffering effect on the optimum insulation thickness is 2.54 times greater than the moisture buffering effect in the envelope, and the two moisture buffering effects make opposing contributions to the optimum insulation thickness. Therefore, when TH or CHM was used without considering the indoor moisture buffering effect, the optimum insulation thickness of the southern wall under one air change per hour(1 ACH) and 100% normal heat source may be overestimated by 2.13% to 3. 59%, and the annual energy load on a single wall may be underestimated by 10.10% to 11.44%. The decrease of airtightness and the increase of indoor heat sources may result in a slight reduction of optimum insulation thickness. This study will enable professionals to consider the effects of moisture buffering on the design of insulation thickness.