• Journal of Applied Reliability
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• v.15 no.3
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• pp.145-148
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• 2015

The products to meet the requirement of are installed in nuclear power plant and the reliability target should be provided in the requirement. However, it is not easy to set a reliability target using quantitative analysis. The objective of this paper is to propose a method of reliability target setting considered warranty cost for process controller and then compare a reliability target with reliability analysis result.

• Health Policy and Management
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• v.28 no.2
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• pp.186-193
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• 2018

Background: The aim of our study was to review the findings of health insurance fraud investigations and to evaluate their impacts on medical costs for target and non-target organizations. An interrupted time series study design using generalized estimation equations was used to evaluate changes in cost following fraud investigations. Methods: We used National Health Insurance claims data from 2009 to 2015, which included 20,625 medical institutions (1,614 target organizations and 19,011 non-target organizations). Outcome variable included cost change after fraud investigation. Results: Following the initiation of fraud investigations, we found statistically significant reductions in cost level for target organizations (-1.40%, p<0.001). In addition, a reduction in cost trend change per month was found for both target organizations and non-target organizations after fraud investigation (target organizations, -0.33%; non-target organizations of same region, -0.19%; non-target organizations of other regions, -0.17%). Conclusion: This study suggested that fraud investigations are associated with cost reduction in target organization. We also found similar effects of fraud investigations on health expenditure for non-target organizations located in the same region and in different regions. Our finding suggests that fraud investigations are important in controlling the growth of health expenditure. To maximize the effects of fraud investigation on the growth of health expenditure, more organizations needed to be considered as target organizations.

• Communications for Statistical Applications and Methods
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• v.7 no.3
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• pp.773-788
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• 2000

Statistical process control (SPC) and engineering process control (EPC) are based on different strategies for processes quality improvement. SPC reduces process variability by detecting and eliminating special causes of process variation. while EPC reduces process variability by adjusting compensatory variables to keep the quality variable close to target. Recently there has been needs for a process control proceduce which combines the tow strategies. This paper considers a combined scheme which simultaneously applies SPC and EPC techniques to reduce the variation of a process. The process model under consideration is an integrated moving average(IMA) process with a step shift. The EPC part of the scheme adjusts the process back to target at every fixed monitoring intervals, which is referred to a repeated adjustment scheme. The SPC part of the scheme uses an exponentially weighted moving average(EWMA) of observed deviation from target to detect special causes. A Markov chain model is developed to relate the scheme's expected cost per unit time to the design parameters of he combined control scheme. The expected cost per unit time is composed of off-target cost, adjustment cost, monitoring cost, and false alarm cost.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2009.11a
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• pp.209-212
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• 2009

The Development of Cost Management is embossed efficiently to use the budget for the construction industry. The government is exploring every efforts and polices to control increasing the budget for the construction industry. However, despite of the government's efforts, researches are insufficient for a cost management of development. Also, the changed cost of construction by frequent plan change is caused of decline in quality etc during an accomplishing project. Therefore, in this study, analyzed about principal official phase of design phase to solve the problem. In order to define clearly the target cost concepts in the planning phase apply to the DTC(Design To Cost) concept and technique at the development of cost management process which will be able to manage the enterprise expense. It's process is expected with the fact that will be the possibility efficiently of fixing target cost in the planning phase by the construction client and designer.

• Journal of Applied Reliability
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• v.15 no.4
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• pp.248-255
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• 2015

Purpose : The purpose of this research is to develop the optimized method and process in the reliability-growth target setting, especially for complex and repairable system (or products) such as vehicle and airplane, construction equipment. Method : A reliability-growth test plan specifies a scenario to achieve the planned reliability value (or reliability target). The major elements in test planning are reliability-growth starting time and reliability level at that time, reliability-growth rate and reliability-growth target. All of them except a reliability target can be referred to the previous development data and reference researches. The reliability target level is directly influencing to test period (or time) which is related to test and warranty cost together. There are a few researches about the reliability target setting method and but showing the limitations to consider the views of engineering, business and customer together. There is no research how to handle the target setting process in detail. Result : We develop the optimized method and systematic process in reliability target setting with considering such views. This research also establish the new concept as production capability which means company (or supplier) capability to product its products. Conclusion : In this research result, we apply the new method to a few projects and can set the reasonable test planning. The developing results is showing the good balance between the developing cost and warranty cost at market.

• Journal of Distribution Science
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• v.11 no.4
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• pp.61-72
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• 2013

Purpose - It is widely accepted that the process of developing marketing strategy is composed of three steps: market segmentation, target market selection and positioning. However, mass marketing strategy based on cost reduction through economies of scale and standardized products, can be also an effective strategic option. Many marketing scholars including Theodore Levitt emphasize the importance of applying the mass production concept to various industries including service industries. Especially, in times of economic downturn, the capability of providing consumers with low-priced, value products can be an important source of competitive advantage, as well as the ability of providing high-priced premium products. Marketers should decide whether they will implement mass marketing strategy or target marketing strategy. The present study theoretically shows that firms should understand the target customers' price elasticity as well as the firm's cost structure in order to make such a strategic decision. Research design, data, and methodology - Instead of implementing an empirical study, this study provides a theoretical(mathematical) investigation on the effect of consumers' price elasticity on a firm's optimal price level, profit, sales volume, revenue, and cost. The results are mostly deduced from derivative calculations and several graphs are utilized to represent the results on the relationships between the variables under study. Results - The analytical results suggest that it is more profitable for a firm to adopt the segment/target marketing strategy (more specifically the differentiation strategy) when the degree of consumers' heterogeneity is high and the proportion of the fixed cost in the total cost is low. On the other hand, if the degree of consumers' heterogeneity is low and the fixed cost is high, it is better to adopt the mass marketing strategy or the cost leadership strategy. The strategy of concentrating on a single target market will be effective when consumers' needs are highly heterogeneous but the fixed cost is high. Any of the three types of generic strategies proposed my Porter(1980, 1985) can be applied when both the consumers' heterogeneity and the fixed cost are low. This study also proposes the contribution-margin-based method for developing the optimal pricing strategy. Conclusions - One of the primary roles of marketers is to find a proper compromise between the two conflicting goals of maximizing customer satisfaction and minimizing cost. In order to do so, he or she should understand the characteristics of the target customers as well as the cost structure of the firm. In addition to the theoretical analyses, this study discusses several business cases and explains how superior companies find the optimal compromise position between these two goals and dominate the market. One of the radical changes recently taking place in business arena is the reduction of production and distribution costs of both physical goods and information due to the advancement and the wide diffusion of information technology. The cost reduction combined with lowered priced elasticity incurred by customized products and services, will enable many firms to adopt the mass customization strategy.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.14 no.2
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• pp.696-706
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• 2013

This study aims to develop DEA model which can look into budget cost variance analysis tool based on standard cost using 68 hospital's input and output data. For accomplishing this purpose, by introducing new DEA model which can get an attainable target cost, we can decompose an actual cost difference into several meaningful sub variances. Also based on the 2008 general hospital data, this model can make variance analysis between actual cost and target cost. Total variance can be divided into technical inefficiency variance, price inefficiency variance, allocation inefficiency variance. This study introduces that by using target budget cost concept, traditional actual cost variance can be divided into a technical variance, price variance, budget variance. Finally, we can get result which confirms there does not exist favorable size effects on efficiency and cost management in running a general hospital.

• Journal of Korean Institute of Industrial Engineers
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• v.32 no.2
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• pp.104-110
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• 2006

When a new facility such as automobile assembly line is designed, computer simulation is often used to estimate its actual throughput level. If it falls short of the target throughput level, then the design must be modified to increase the throughput capacity. For complex facilities having parallel processes and network of material flows, the modification procedure is not trivial. Even if the capacity of a particular bottleneck process is increased, the target throughput may not be achieved because the bottleneck may move to another process. Furthermore, each process has a different set of options with different cost to increase the capacity. In this study, we present a systematic procedure of determining the cost-effective set of options which achieves the target throughput.

• Computational Structural Engineering : An International Journal
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• v.2 no.1
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• pp.11-17
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• 2002

Cost-effectiveness in design is considered for determining the target reliability of concrete bridges under seismic actions. This objective can be achieved based on the economic optimization of the expected life-cycle cost of a bridge, which includes initial cost, direct losses, and indirect losses of a bridge due to strong earthquakes over its lifetime. A separating factor is defined to consider the redundancy of a transportation network. The Park-Ang damage model is employed to define the damage of a bridge under seismic action, and a Monte Carlo method based on the DRAIN-2DX program is developed to assess the failure probability of a bridge. The results for an example bridge analyzed in this paper show that the optimal target failure probability depends on the traffic volume carried by the bridge and is between 1.0×10/sup -3/ to 3.0×10/sup -3/ over a life of 50 years.

• Korean Journal of Agricultural Science
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• v.37 no.2
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• pp.245-248
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• 2010

This study was conducted to investigate effect of changes in target fat and protein contents in milk on feed cost using a simulation modeling approach based on the 2001 dairy NRC. Two simulations were done; simulation I had a limitation (up to 20%), but simulation II had no limitation for the use of cottonseed hull in a diet. Using commonly used feed ingredients in Korea, we formulated least cost diets that meet nutrient requirement of a lactating dairy cow producing 36 kg of milk with combinations of 0.1% decrease or 0.1% increase in target milk fat or protein, respectively, from the national average milk fat (4.0%) and milk protein (3.1%). The contents of alfalfa and corn in a least-cost diet were decreased and those of tall fescue, whole cottonseed and rapeseed meal were increased with decreasing fat and/or increasing protein in milk. Scenarios that decreased target milk fat percentage from 4.0% to 3.9% reduced feed cost by 2 won per kg. Due to decrease in feed intake, daily feed cost was even more reduced (136 won per head) by decreasing target milk fat percentage. Increase in target milk protein percentage from 3.1% to 3.2% reduced feed cost by 6 won per kg. Among scenarios simulated, the least feed cost was obtained in scenario aimed for 3.9% fat and 3.2% of protein in milk. We conclude that a feeding practice for increasing milk protein percentage does not directly increase feed cost. In addition, feeding practices that increase protein content in milk is expected to improve economic life-span and reproductive performance of dairy cows.