Search results for: Cost/ benefit
2370 Chaotic Dynamics of Cost Overruns in Oil and Gas Megaprojects: A Review
Authors: O. J. Olaniran, P. E. D. Love, D. J. Edwards, O. Olatunji, J. Matthews
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Cost overruns are a persistent problem in oil and gas megaprojects. Whilst the extant literature is filled with studies on incidents and causes of cost overruns, underlying theories to explain their emergence in oil and gas megaprojects are few. Yet, a way to contain the syndrome of cost overruns is to understand the bases of ‘how and why’ they occur. Such knowledge will also help to develop pragmatic techniques for better overall management of oil and gas megaprojects. The aim of this paper is to explain the development of cost overruns in hydrocarbon megaprojects through the perspective of chaos theory. The underlying principles of chaos theory and its implications for cost overruns are examined and practical recommendations proposed. In addition, directions for future research in this fertile area provided.Keywords: Chaos theory, oil and gas, cost overruns, megaprojects.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 23272369 Identification of Factors Influencing Costs in Green Projects
Authors: Nazirah Zainul Abidin, Nurul Zahirah Mokhtar Azizi
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Cost has always been the leading concern in green building development. The perception that construction cost for green building is higher than conventional buildings has only made the discussion of green building cost more difficult. Understanding the factors that will influence the cost of green construction is expected to shed light into what makes green construction more or at par with conventional projects, or perhaps, where cost can be optimised. This paper identifies the elements of cost before shifting the attention to the influencing factors. Findings from past studies uncovered various factors related to cost which are grouped into five focal themes i.e. awareness, knowledge, financial, technical, and government support. A conceptual framework is produced in a form of a flower diagram indicating the cost influencing factors of green building development. These factors were found to be both physical and non-physical aspects of a project. The framework provides ground for the next stage of research that is to further explore how these factors influence the project cost and decision making.Keywords: Green project, factors influencing cost, hard cost, soft cost.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 14922368 Soft Cost Elements That Affect Developers’ Decision to Build Green
Authors: Nurul Zahirah M.A., N. Zainul Abidin, Azlan Raofuddin Nuruddin
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Despite all the hype about green building, many developers are still resistant to the idea of building green due to the common perception that green building construction is expensive. This contradicts with scholarly findings that identify only a marginal cost premium or none at all given that green design is considered during the design process and planning stage. Nevertheless, cost implications continue to become an issue when deciding to build green. The planning stage is of strategic importance as decisions made at this early stage would influence the project cost thereafter. Using analysis of existing literature, the paper identifies six elements of soft cost that are considered in the planning stage. The elements include consultants, green building consultant, certification, commissioning, market, and tax. Out of the six elements, commissioning represents the bulk of soft cost for buildings seeking green certification. The study concluded that, although hard cost may have a bigger impact on the project cost, but soft cost is the hidden cost which people tend to ignore. Poor consideration of soft cost during planning stage may lead to over-realistic expectations and ultimately, overlooked cost additions.
Keywords: Green building, cost element, soft cost, developer decision.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 19692367 Modeling Cost Structure for Assessment Production Cost of Algal - Biofue
Authors: A. Eman Mohammed
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Algae-based fuel are considered a promising sources of clean energy, and because it has many advantages over traditional biofuel, research and business ventures have driven into developing and producing Algal-biofuel. But its production stages create a cost structure that it is not competitive with traditional fuels. Therefore, cost becomes the main obstacle in commercial production purpose. However, the present research which aims at using cost structure model, and designed MS-Dose program, to investigate the a mount of production cost and determined the parameter had great effect on it, second to measured the amount of contribution rate of algae in process the pollution by capturing Co2 from air . The result generated from the model shows that the production cost of biomass is between $0.137 /kg for 100 ha and $0.132 /kg for 500 ha which was less than cost of other studies, while gallon costs between $3.4 - 3.5, more than traditional sources of oil about $1 ,which regarded as a rate of contribution of algal in capturing CO2 from air.Keywords: Cost Structure Model, Operation Costs(Production Cost), Capital Costs, Algae.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 20142366 Maintenance Alternatives Related to Costs of Wind Turbines Using Finite State Markov Model
Authors: Boukelkoul Lahcen
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The cumulative costs for O&M may represent as much as 65%-90% of the turbine's investment cost. Nowadays the cost effectiveness concept becomes a decision-making and technology evaluation metric. The cost of energy metric accounts for the effect replacement cost and unscheduled maintenance cost parameters. One key of the proposed approach is the idea of maintaining the WTs which can be captured via use of a finite state Markov chain. Such a model can be embedded within a probabilistic operation and maintenance simulation reflecting the action to be done. In this paper, an approach of estimating the cost of O&M is presented. The finite state Markov model is used for decision problems with number of determined periods (life cycle) to predict the cost according to various options of maintenance.Keywords: Cost, finite state, Markov model, operation, maintenance.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 14712365 Crowdsourcing as an Open Innovation Tool for Entrepreneurship
Authors: Zeynep Ayfer Bozat
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As traditional innovation has already taken its place in managers’ to do lists; managers and companies have started to look for new ways to go beyond the traditional innovation. Because of its cost, traditional innovation became a burden for companies since they only use inner sources. Companies have intended to use outer innovation sources to decrease the innovation costs and Open Innovation has become a new solution for companies at this point. Crowdsourcing is a tool of Open Innovation and it consists of two words: Outsourcing and crowd. Crowdsourcing aims to benefit from the efforts and ideas of a virtual crowd via Internet technologies. In addition to that, crowdsourcing can help entrepreneurs to innovate and grow their businesses. They can crowd source anything they can use to grow their businesses: Ideas, investment, new business, new partners, new solutions, new policies, data, insight, marketing or talent. Therefore, the aim of the study is to be able to show some possible ways for entrepreneurs to benefit from crowdsourcing to expand or foster their businesses. In the study, the term crowdsourcing has been given in details and these possible ways have been searched and given.Keywords: Crowdsourcing, entrepreneurship, innovation, open innovation.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 14442364 Optimal Type and Installation Time of Wind Farm in a Power System, Considering Service Providers
Authors: M. H. Abedi, A. Jalilvand
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The economic development benefits of wind energy may be the most tangible basis for the local and state officials’ interests. In addition to the direct salaries associated with building and operating wind projects, the wind energy industry provides indirect jobs and benefits. The optimal planning of a wind farm is one most important topic in renewable energy technology. Many methods have been implemented to optimize the cost and output benefit of wind farms, but the contribution of this paper is mentioning different types of service providers and also time of installation of wind turbines during planning horizon years. Genetic algorithm (GA) is used to optimize the problem. It is observed that an appropriate layout of wind farm can cause to minimize the different types of cost.Keywords: Renewable energy, wind farm, optimization, planning.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 11252363 Structural Cost of Optimized Reinforced Concrete Isolated Footing
Authors: Mohammed S. Al-Ansari
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This paper presents an analytical model to estimate the cost of an optimized design of reinforced concrete isolated footing base on structural safety. Flexural and optimized formulas for square and rectangular footingare derived base on ACI building code of design, material cost and optimization. The optimization constraints consist of upper and lower limits of depth and area of steel. Footing depth and area of reinforcing steel are to be minimized to yield the optimal footing dimensions. Optimized footing materials cost of concrete, reinforcing steel and formwork of the designed sections are computed. Total cost factor TCF and other cost factors are developed to generalize and simplify the calculations of footing material cost. Numerical examples are presented to illustrate the model capability of estimating the material cost of the footing for a desired axial load.Keywords: Footing, Depth, Concrete, Steel, Formwork, Optimization, Material cost, Cost Factors.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 47002362 A Combinatorial Approach to Planning Manufacturing Safety Programme
Authors: Kazeem A. Adebiyi
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Despite many success stories of manufacturing safety, many organizations are still reluctant, perceiving it as cost increasing and time consuming. The clear contributor may be due to the use of lagging indicators rather than leading indicator measures. The study therefore proposes a combinatorial model for determining the best safety strategy. A combination theory and cost benefit analysis was employed to develop a monetary saving / loss function in terms value of preventions and cost of prevention strategy. Documentations, interviews and structured questionnaire were employed to collect information on Before-And-After safety programme records from a Tobacco company between periods of 1993-2001(for pre-safety) and 2002-2008 (safety period) for the model application. Three combinatorial alternatives A, B, C were obtained resulting into 4, 6 and 4 strategies respectively with PPE and Training being predominant. A total of 728 accidents were recorded for a 9 year period of pre-safety programme and 163 accidents were recorded for 7 years period of safety programme. Six preventions activities (alternative B) yielded the best results. However, all the years of operation experienced except year 2004. The study provides a leading resources for planning successful safety programme
Keywords: Combination, Manufacturing Safety, Monetary Savings, Prevention Strategies.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 12412361 Matrix Completion with Heterogeneous Observation Cost Using Sparsity-Number of Column-Space
Authors: Ilqar Ramazanli
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The matrix completion problem has been studied broadly under many underlying conditions. In many real-life scenarios, we could expect elements from distinct columns or distinct positions to have a different cost. In this paper, we explore this generalization under adaptive conditions. We approach the problem under two different cost models. The first one is that entries from different columns have different observation costs, but, within the same column, each entry has a uniform cost. The second one is any two entry has different observation cost, despite being the same or different columns. We provide complexity analysis of our algorithms and provide tightness guarantees.
Keywords: Matrix completion, adaptive learning, heterogeneous cost, Matroid optimization.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4702360 Low Cost Chip Set Selection Algorithm for Multi-way Partitioning of Digital System
Authors: Jae Young Park, Soongyu Kwon, Kyu Han Kim, Hyeong Geon Lee, Jong Tae Kim
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This paper considers the problem of finding low cost chip set for a minimum cost partitioning of a large logic circuits. Chip sets are selected from a given library. Each chip in the library has a different price, area, and I/O pin. We propose a low cost chip set selection algorithm. Inputs to the algorithm are a netlist and a chip information in the library. Output is a list of chip sets satisfied with area and maximum partitioning number and it is sorted by cost. The algorithm finds the sorted list of chip sets from minimum cost to maximum cost. We used MCNC benchmark circuits for experiments. The experimental results show that all of chip sets found satisfy the multiple partitioning constraints.Keywords: lowest cost chip set, MCNC benchmark, multi-way partitioning.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 14942359 Possible Number of Dwelling Units Using Waste Plastic Bottle for Construction
Authors: Dibya Jivan Pati, Kazuhisa Iki, Riken Homma
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Unlike other metro cities of India, Bhubaneswar–the capital city of Odisha, is expected to reach 1-million-mark population by now. The demands of dwelling unit requirement mostly among urban poor belonging to Economically Weaker section (EWS) and Low Income groups (LIG) is becoming a challenge due to high housing cost and rents. As a matter of fact, it’s also noted that, with increase in population, the solid waste generation also increases subsequently affecting the environment due to inefficiency in collection of waste by local government bodies. Methods of utilizing Solid Waste - especially in form of Plastic bottles, Glass bottles and Metal cans (PGM) are now widely used as an alternative material for construction of low-cost building by Non-Government Organizations (NGOs) in developing countries like India to help the urban poor afford a shelter. The application of disposed plastic bottle used in construction of single dwelling significantly reduces the overall cost of construction to as much as 14% compared to traditional construction material. Therefore, considering its cost-benefit result, it’s possible to provide housing to EWS and LIGs at an affordable price. In this paper, we estimated the quantity of plastic bottles generated in Bhubaneswar which further helped to estimate the possible number of single dwelling unit that can be constructed on yearly basis so as to refrain from further housing shortage. The estimation results will be practically used for planning and managing low-cost housing business by local government and NGOs.Keywords: Construction, dwelling unit, plastic bottle, solid waste generation, groups.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 10672358 Cost of Road Traffic Accidents in Egypt
Authors: Mohamed A. Ismail, Samar M. M. Abdelmageed
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The main objective of this paper is to estimate the cost of road traffic accidents in Egypt. The Human Capital (HC) approach, specifically the Gross-Loss-of-Output methodology, is adopted for estimation. Moreover, cost values obtained by previous national literature are updated using the inflation rates. The results indicate an estimated cost of road traffic accidents in Egypt of approximately 10 billion Egyptian Pounds (about $US 1.8 billion) for the year 2008. In addition, it is expected that this cost will rise in 2009 to 11.8 billion Egyptian Pounds (about $US 2.1 billion).
Keywords: Cost, Gross-Loss-of-Output, Human CapitalApproach, Road Traffic Accidents.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 37722357 Genetic Algorithms Multi-Objective Model for Project Scheduling
Authors: Elsheikh Asser
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Time and cost are the main goals of the construction project management. The first schedule developed may not be a suitable schedule for beginning or completing the project to achieve the target completion time at a minimum total cost. In general, there are trade-offs between time and cost (TCT) to complete the activities of a project. This research presents genetic algorithms (GAs) multiobjective model for project scheduling considering different scenarios such as least cost, least time, and target time.
Keywords: Genetic algorithms, Time-cost trade-off.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 23102356 Optimizing Turning Parameters for Cylindrical Parts Using Simulated Annealing Method
Authors: Farhad Kolahan, Mahdi Abachizadeh
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In this paper, a simulated annealing algorithm has been developed to optimize machining parameters in turning operation on cylindrical workpieces. The turning operation usually includes several passes of rough machining and a final pass of finishing. Seven different constraints are considered in a non-linear model where the goal is to achieve minimum total cost. The weighted total cost consists of machining cost, tool cost and tool replacement cost. The computational results clearly show that the proposed optimization procedure has considerably improved total operation cost by optimally determining machining parameters.
Keywords: Optimization, Simulated Annealing, Machining Parameters, Turning Operation.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 18042355 The Model to Calculate the Cost of Money to the Breakdown of Deposits and Banking Service
Authors: Javad Elkaie Behjati, Mehrzad Minouei
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The present study aimed to assess the cost of money based on separating deposits and identifying actions and costs affecting in the process of cost of money in EN Bank of Iran (also known as Eghtesad Novin Bank). The method to calculate the cost of money is based on Activity-Based Costing (ABC). To conduct the study, the required data including deposits in banks and absorbed costs related to the same deposits were extracted from the financial statements of the bank. In order to cost the bank services properly as well as determining the commercial strategies required by commercial units, the data are precisely studied and the cost of each deposit is calculated according to the ABC. Eventually, the factors helping to improve the cost management and also a new model to calculate the cost of money in the bank are presented by some applicable formulas. Furthermore, some offers have been provided for users of both sections, in the practical section in commercial units and the theoretical one in universities.Keywords: The cost of money, activity-based costing, banking, bank deposits, bank fees, services bank.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 8422354 Low-Cost Eco-Friendly Building Material: A Case Study in Ethiopia
Authors: W. Z. Taffese
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This work presents a low-cost and eco-friendly building material named Agrostone panel. Africa-s urban population is growing at an annual rate of 2.8% and 62% of its population will live in urban areas by 2050. As a consequence, many of the least urbanized and least developed African countries- will face serious challenges in providing affordable housing to the urban dwellers. Since the cost of building materials accounts for the largest proportion of the overall construction cost, innovating low-cost building material is vital. Agrostone panel is used in housing projects in Ethiopia. It uses raw materials of agricultural/industrial wastes and/or natural minerals as a filler, magnesium-based chemicals as a binder and fiberglass as reinforcement. Agrostone panel reduces the cost of wall construction by 50% compared with the conventional building materials. The pros and cons of Agrostone panel as well as the use of other waste materials as a raw material to make the panel more sustainable, low-cost and better properties are discussed.Keywords: Agrostone Panel, Low-cost and sustainable Building Materials, Agro-waste for construction
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 97832353 Effect of Modification and Expansion on Emergence of Cooperation in Demographic Multi-Level Donor-Recipient Game
Authors: Tsuneyuki Namekata, Yoko Namekata
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It is known that the mean investment evolves from a very low initial value to some high level in the Continuous Prisoner's Dilemma. We examine how the cooperation level evolves from a low initial level to a high level in our Demographic Multi-level Donor-Recipient situation. In the Multi-level Donor-Recipient game, one player is selected as a Donor and the other as a Recipient randomly. The Donor has multiple cooperative moves and one defective move. A cooperative move means the Donor pays some cost for the Recipient to receive some benefit. The more cooperative move the Donor takes, the higher cost the Donor pays and the higher benefit the Recipient receives. The defective move has no effect on them. Two consecutive Multi-level Donor-Recipient games, one as a Donor and the other as a Recipient, can be viewed as a discrete version of the Continuous Prisoner's Dilemma. In the Demographic Multi-level Donor-Recipient game, players are initially distributed spatially. In each period, players play multiple Multi-level Donor-Recipient games against other players. He leaves offspring if possible and dies because of negative accumulated payoff of him or his lifespan. Cooperative moves are necessary for the survival of the whole population. There is only a low level of cooperative move besides the defective move initially available in strategies of players. A player may modify and expand his strategy by his recent experiences or practices. We distinguish several types of a player about modification and expansion. We show, by Agent-Based Simulation, that introducing only the modification increases the emergence rate of cooperation and introducing both the modification and the expansion further increases it and a high level of cooperation does emerge in our Demographic Multi-level Donor-Recipient Game.
Keywords: Agent-based simulation, donor-recipient game, emergence of cooperation, spatial structure, TFT, TF2T.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 8622352 Analysing the Cost of Immigrants to the National Health System in Eastern Macedonia and Thrace
Authors: T. Theodosiou, P. Polychronidou, A. G. Karasavvoglou
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The latest years the number of immigrants at Greece has increased dramatically. Their impact on the National Health System (NHS) has not been yet thoroughly investigated. This paper analyses the cost of immigrants to the NHS hospitals of the region of Eastern Macedonia and Thrace. The data are collected from 2005 to 2011 from five different hospitals and are analysed using linear mixed effects models in order to investigate the effects of nationality and year on the cost of hospitalization and treatment. The results show that generally the Greek nationality patients have a higher mean cost of hospitalization compared to the immigrants and that there is an increasing trend for the cost except for the year 2010.Keywords: Cost, Eastern Macedonia, Thrace, immigrants, national health system.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 15222351 A Model Suggestion on Competitiveness and Sustainability of SMEs in Developing Countries
Authors: Ahmet Diken, Tahsin Karabulut
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The factor which developing countries are in need is capital. Such countries make an effort to increase their income in order to meet their expenses for employment, infrastructure, superstructure investments, education, health and defense. The sole income of the countries is taxes collected from businesses. The businesses should drive profit and return in order to be able to toll. In a world where competition exists, different strategies may be followed by business in developing countries and they must specify their target markets. İn order to minimize cost and maximize profit, SMEs have to concentrate on target markets and select cost oriented strategy. In this study, a theoretical model is suggested that SME firms have to act as cluster between each other, and also must be optimal provider for large scale firms. SMEs’ policy must be supported by public. This relationship can benefit large scale firms to have brand over the world, and this organization increases value added for developing countries.
Keywords: Competitiveness, sustainability, SMEs, developing countries.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 10432350 Factors Contributing to Building Construction Project’s Cost Overrun in Jordan
Authors: Ghaleb Y. Abbasi, Sufyan Al-Mrayat
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This study examined the contribution of 36 factors to building construction project’s cost overrun in Jordan. A questionnaire was distributed to a random sample of 350 stakeholders comprised of owners, consultants, and contractors, of which 285 responded. SPSS analysis was conducted to identify the top five causes of cost overrun, which were a large number of variation orders, inadequate quantities provided in the contract, misunderstanding of the project plan, incomplete bid documents, and choosing the lowest price in the contract bidding. There was an agreement among the study participants in ranking the factors contributing to cost overrun, which indicated that these factors were very commonly encountered in most construction projects in Jordan. Thus, it is crucial to enhance the collaboration among the different project stakeholders to understand the project’s objectives and set a realistic plan that takes into consideration all the factors that might influence the project cost, which might eventually prevent cost overrun.
Keywords: Cost, overrun, building construction projects, Jordan.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1252349 Transmission Expansion Planning Considering Network Adequacy and Investment Cost Limitation using Genetic Algorithm
Authors: M. Mahdavi, E. Mahdavi
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In this research, STNEP is being studied considering network adequacy and limitation of investment cost by decimal codification genetic algorithm (DCGA). The goal is obtaining the maximum of network adequacy with lowest expansion cost for a specific investment. Finally, the proposed idea is applied to the Garvers 6-bus network. The results show that considering the network adequacy for solution of STNEP problem is caused that among of expansion plans for a determined investment, configuration which has relatively lower expansion cost and higher adequacy is proposed by GA based method. Finally, with respect to the curve of adequacy versus expansion cost it can be said that more optimal configurations for expansion of network are obtained with lower investment costs.
Keywords: TNEP, Network Adequacy, Investment Cost, GA
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 15022348 Preliminary Views on the Determinants of the Cost of Capital for the Emergent Market of Romania
Authors: I. Ionascu, M. Ionascu, D.-A. Calu, L. Olimid
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This paper investigates several factors affecting the cost of capital for listed Romanian companies. Although there is a large amount of literature investigating the drivers of the cost of capital internationally, there is currently little evidence from emergent markets. Based on a sample of 19 Romanian listed companies followed by financial analysts for the years 2008-2010, according to Thomson Reuters- I/B/E/S data base, the paper confirms the international trends, showing that size, corporate governance policies, and growth are negatively correlated with the cost of capital.Keywords: Corporate governance, determinants of the cost of capital, emergent markets.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 15342347 Integrating Life Cycle Uncertainties for Evaluating a Building Overall Cost
Authors: M. Arja, G. Sauce, B. Souyri
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Overall cost is a significant consideration in any decision-making process. Although many studies were carried out on overall cost in construction, little has treated the uncertainties of real life cycle development. On the basis of several case studies, a feedback process was performed on the historical data of studied buildings. This process enabled to identify some factors causing uncertainty during the operational period. As a result, the research proposes a new method for assessing the overall cost during a part of the building-s life cycle taking account of the building actual value, its end-of-life value and the influence of the identified life cycle uncertainty factors. The findings are a step towards a higher level of reliability in overall cost evaluation taking account of some usually unexpected uncertainty factors.Keywords: Asset management, building life cycle uncertainty, building value, overall cost.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 16402346 An Analysis of Activity-Based Costing in a Manufacturing System
Authors: Derya Eren Akyol, Gonca Tuncel, G. Mirac Bayhan
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Activity-Based Costing (ABC) represents an alternative paradigm to traditional cost accounting system and it often provides more accurate cost information for decision making such as product pricing, product mix, and make-orbuy decisions. ABC models the causal relationships between products and the resources used in their production and traces the cost of products according to the activities through the use of appropriate cost drivers. In this paper, the implementation of the ABC in a manufacturing system is analyzed and a comparison with the traditional cost based system in terms of the effects on the product costs are carried out to highlight the difference between two costing methodologies. By using this methodology, a valuable insight into the factors that cause the cost is provided, helping to better manage the activities of the company.Keywords: Activity-based costing, manufacturing systems, product costs, traditional costing.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 31382345 Optimization of Transportation Cost of Plaster of Paris Cement
Authors: K. M. Oba
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The transportation modelling technique was adopted in the solution of the problem of transportation of Plaster of Paris (POP) cement from three supply locations (construction materials markets) to three demand locations (construction sites) in Port Harcourt. The study was carried out for 40 kg bags of POP cement fully loaded on 600 bags per truck from the three selected construction materials markets in Port Harcourt. The costs of transporting the POP cement were determined and subjected to the North-West Corner, Least Cost, and Vogel’s approximation methods to determine the initial feasible solution. Of the three results, the Least Cost Method turned out to have the lowest cost. Using the Stepping Stone Method, the optimum shipping cost was finally attained after two successive iterations. The optimum shipping cost was calculated to be $1,690 or ₦1,774,500 as of October 2023. As a result of this study, the application of transportation modelling can boost the effective management of the transportation of POP cement in construction projects.
Keywords: Cost of POP cement, management of transportation, optimization of shipping cost, Plaster of Paris, transportation model.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2232344 Optimizing the Project Delivery Time with Time Cost Trade-offs
Authors: Wei Lo, Ming-En Kuo
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While to minimize the overall project cost is always one of the objectives of construction managers, to obtain the maximum economic return is definitely one the ultimate goals of the project investors. As there is a trade-off relationship between the project time and cost, and the project delivery time directly affects the timing of economic recovery of an investment project, to provide a method that can quantify the relationship between the project delivery time and cost, and identify the optimal delivery time to maximize economic return has always been the focus of researchers and industrial practitioners. Using genetic algorithms, this study introduces an optimization model that can quantify the relationship between the project delivery time and cost and furthermore, determine the optimal delivery time to maximize the economic return of the project. The results provide objective quantification for accurately evaluating the project delivery time and cost, and facilitate the analysis of the economic return of a project.Keywords: Time-Cost Trade-Off, Genetic Algorithms, Resource Integration, Economic return.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 17672343 Adoption of Appropriate and Cost Effective Technologies in Housing: Indian Experience
Authors: A. K. Jain, M. C. Paliwal
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Construction cost in India is increasing at around 50 per cent over the average inflation levels. It have registered increase of up to 15 per cent every year, primarily due to cost of basic building materials such as steel, cement, bricks, timber and other inputs as well as cost of labour. As a result, the cost of construction using conventional building materials and construction is becoming beyond the affordable limits particularly for low-income groups of population as well as a large cross section of the middle - income groups. Therefore, there is a need to adopt cost-effective construction methods either by up-gradation of traditional technologies using local resources or applying modern construction materials and techniques with efficient inputs leading to economic solutions. This has become the most relevant aspect in the context of the large volume of housing to be constructed in both rural and urban areas and the consideration of limitations in the availability of resources such as building materials and finance. This paper makes an overview of the housing status in India and adoption of appropriate and cost effective technologies in the country.Keywords: Appropriate, Cost Effective, Ekra, Five year plan, Poverty
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 49652342 Project Selection by Using Fuzzy AHP and TOPSIS Technique
Authors: S. Mahmoodzadeh, J. Shahrabi, M. Pariazar, M. S. Zaeri
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In this article, by using fuzzy AHP and TOPSIS technique we propose a new method for project selection problem. After reviewing four common methods of comparing alternatives investment (net present value, rate of return, benefit cost analysis and payback period) we use them as criteria in AHP tree. In this methodology by utilizing improved Analytical Hierarchy Process by Fuzzy set theory, first we try to calculate weight of each criterion. Then by implementing TOPSIS algorithm, assessment of projects has been done. Obtained results have been tested in a numerical example.Keywords: Fuzzy AHP, Project Selection, TOPSIS Technique.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 65852341 Towards an Intelligent Ontology Construction Cost Estimation System: Using BIM and New Rules of Measurement Techniques
Authors: F. H. Abanda, B. Kamsu-Foguem, J. H. M. Tah
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Construction cost estimation is one of the most important aspects of construction project design. For generations, the process of cost estimating has been manual, time-consuming and error-prone. This has partly led to most cost estimates to be unclear and riddled with inaccuracies that at times lead to over- or underestimation of construction cost. The development of standard set of measurement rules that are understandable by all those involved in a construction project, have not totally solved the challenges. Emerging Building Information Modelling (BIM) technologies can exploit standard measurement methods to automate cost estimation process and improve accuracies. This requires standard measurement methods to be structured in ontological and machine readable format; so that BIM software packages can easily read them. Most standard measurement methods are still text-based in textbooks and require manual editing into tables or Spreadsheet during cost estimation. The aim of this study is to explore the development of an ontology based on New Rules of Measurement (NRM) commonly used in the UK for cost estimation. The methodology adopted is Methontology, one of the most widely used ontology engineering methodologies. The challenges in this exploratory study are also reported and recommendations for future studies proposed.
Keywords: BIM, Construction projects, Cost estimation, NRM, Ontology.
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4423