• Title/Summary/Keyword: Unit production cost

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The Implementation of Total Quality Management in Controlling the Cost of Manufacturing

  • Seetharaman, A.;Raj, John Rudolph;Seetharaman, Saravanan Arumugam
    • Journal of Distribution Science
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    • v.13 no.8
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    • pp.27-40
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    • 2015
  • Purpose - Total Quality Management (TQM) has received significant attention and interest from a large number of organizations around the world in various industries. These organizations have tried to embody TQM concepts in areas such as engineering and product design, marketing, R&D, procurement, production, personnel, and product inspection. Research design, data, and methodology - This study presents an overview of the fundamentals of TQM and an in depth review of the obstacles to the successful implementation of TQM. Results - In order to control the cost of manufacturing, the tracking of the cost of quality (COQ) allows companies to capture the actual overall cost incurred in producing a unit of product or service. The study explores the reasons why companies track the COQ and ways to address it. Conclusions - Based on the results, COQ is one of the key performance indicators for making more accurate strategic decisions as well as a critical aspect of TQM. The study also presents a few popular quality improvement tools that have been widely used in organizations successfully implementing TQM.

Analysis of the Robot for Detection of Improvised Explosive Devices and a Technology for the CNT based Detection Sensor (급조 폭발물(IED) 제거 로봇의 개발비용 분석 및 카본나노튜브 기반 탐지센서기술에 관한 연구)

  • Kwon, Hye Jin
    • Journal of the Semiconductor & Display Technology
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    • v.17 no.1
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    • pp.54-61
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    • 2018
  • In this study, two aspects were analyzed about the robot for removal of explosive devices. First, the cost analyses were performed to provide a reasonable solution for the acquirement of the system. It is processed by an engineering estimate method and the process was consisted of two ways : a system development expense and a mass production unit price. In additions, the resultant cost analyses were compared between the cases excluding and including a mines detection system. As results, in the case of the acquirement of the robot system for removal of explosive devices, it is recommended that the performance by improving the mines detection ability should be considered preferentially rather than the cost because the material cost for the mines detection system is negligible compared to the whole system cost. Second, as a way for improving the system performance by the mine detection function, the carbon nanotube (CNT) based sensor technology was studied in terms of sensitivity and simple productivity with presenting its preliminary experimental results. The detection electrodes were formed by a photolithography method using a photosensitive CNT paste. As results, this method was shown as a scalable and expandable technology for the excellent mines detection sensors.

Effects of Reactor Type on the Economy of the Ethanol Dehydration Process: Multitubular vs. Adiabatic Reactors

  • Yoo, Kee-Youn
    • Korean Chemical Engineering Research
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    • v.59 no.3
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    • pp.467-479
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    • 2021
  • Abstract: A kinetic model was developed for the dehydration of ethanol to ethylene based on two parallel reaction pathways. Kinetic parameters were estimated by fitting experimental data of powder catalysts in a lab-scale test, and the effectiveness factor was determined using data from pellet-type catalysts in bench-scale experiments. The developed model was used to design a multitubular fixed-bed reactor (MTR) and an adiabatic reactor (AR) at a 10 ton per day scale. The two different reactor types resulted in different process configurations: the MTR consumed the ethanol completely and did not produce the reaction intermediate, diethyl ether (DEE), resulting in simple separation trains at the expense of high equipment cost for the reactor, whereas the AR required azeotropic distillation and cryogenic distillation to recycle the unreacted ethanol and to separate the undesired DEE, respectively. Quantitative analysis based on the equipment and annual energy costs showed that, despite high equipment cost of the reactor, the MTR process had the advantages of high productivity and simple separation trains, whereas the use of additional separation trains in the AR process increased both the total equipment cost and the annual energy cost per unit production rate.

Optimal Material Flow of AGV based Production Lines (자동안내운반기로 된 생산라인의 최적 물류흐름)

  • 장석화
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.12 no.19
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    • pp.73-78
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    • 1989
  • This paper concerns the production model that the Automatic Guided Vehicles(AGVs) is used as transporters in assembly line. The model suggests that assembly parts may inter the beginning of the line in multiple units instead entering one unit at a time. Costs are occured in proportion to the number of vehicle on the line and job flow time. Here, the objective of this model is to determine the number of vehicle to minimize the total cost for M products production. Theoretical results are proved which lead to the development of algorithm for solution search. The solution search procedure is illustrated by a numerical example.

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A Bayesian state-space production model for Korean chub mackerel (Scomber japonicus) stock

  • Jung, Yuri;Seo, Young Il;Hyun, Saang-Yoon
    • Fisheries and Aquatic Sciences
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    • v.24 no.4
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    • pp.139-152
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    • 2021
  • The main purpose of this study is to fit catch-per-unit-effort (CPUE) data about Korea chub mackerel (Scomber japonicus) stock with a state-space production (SSP) model, and to provide stock assessment results. We chose a surplus production model for the chub mackerel data, namely annual yield and CPUE. Then we employed a state-space layer for a production model to consider two sources of variability arising from unmodelled factors (process error) and noise in the data (observation error). We implemented the model via script software ADMB-RE because it reduces the computational cost of high-dimensional integration and provides Markov Chain Monte Carlo sampling, which is required for Bayesian approaches. To stabilize the numerical optimization, we considered prior distributions for model parameters. Applying the SSP model to data collected from commercial fisheries from 1999 to 2017, we estimated model parameters and management references, as well as uncertainties for the estimates. We also applied various production models and showed parameter estimates and goodness of fit statistics to compare the model performance. This study presents two significant findings. First, we concluded that the stock has been overexploited in terms of harvest rate from 1999 to 2017. Second, we suggest a SSP model for the smallest goodness of fit statistics among several production models, especially for fitting CPUE data with fluctuations.

An Empirical Analysis of Optimal Size Combination in the Small Crop-Livestock Cycling Organic Farm (소규모 경축순환 유기농가의 경제적 최적규모 조합 실증 분석)

  • Choi, Deog-Cheon
    • Korean Journal of Organic Agriculture
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    • v.26 no.1
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    • pp.57-72
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    • 2018
  • Organic agriculture seeks sustainable agriculture. Organic agriculture is based on circulating agriculture of a family farm unit. However, as of the end of 2016, only 33 out of the total organic farming farms were implementing Crop-Livestock cycling organic farming. The reason seems to be a matter of income after all. The optimal size combination refers to the scale by which family farms can maintain their quality of life while engaging in farming activities. In other words. it is a farm scale that maintains optimal income through stable labor costs. In the meantime, there has been no previous study on the optimal economical combination of Crop-Livestock cycling farming. Choi (2016) analyzed whether the economies of scope (EOS) were realized in the combined production by using the management data of the farmers who practiced Crop-Livestock cycling organic farming for four years. As a result, it has been revealed that the EOS measurement value is 0 or more so the economies of scope are being realized. Therefore, the purpose of this empirical analysis is to identify farm incomes under this circumstance. It is assumed that the optimum production is achieved by balancing the total income curve and the total cost curve in the optimal scale production range. The results of the analysis are as follows. First, the income after the conversion to Crop-Livestock cycling farming was 44,789,280 won, the sum of the seedling-livestock sector, which was 17,873,120 won higher when the non-Crop-Livestock cycling farming was assumed. The same is true for 2014 and 2015. The reason for this is that pig droppings were composted from organic seedlings, and the cost of selling pork was 150,000 won/per pig more expensive even though the manufacturing cost of organic feeds was higher than the purchasing cost. Secondly, this study simulated the result that the economic index varies when the farm size combination is changed by the farm size of 100% standard (S100) as of 2014. S130 is the increase in size from 100% of 2014, whereas S30 is the result of 3ha crop and 66 livestock (pigs). As a result of this simulation, Crop-Livestock cycling farming income decreased more than non-Crop-Livestock cycling farming as the farm size decreased, whereas the income decreased as the farm size increased. When the size was reduced below S50, the income tended to decrease. In this situation, EOS changed in the same direction. The results showed that when the farming size was reorganized and reduced to 50% compared to 2014, the income and income difference was the highest. At the same time, economies of scope (EOS) were the highest at 0.12985. In other words, it was found that the income of farm houses in a family farm unit sector was the best in the combination of 1.5ha crop agriculture and 110 livestock (pigs).

A Study on the Optimal Water Pricing by Long Run Marginal Cost in Korea (장기한계비용을 이용한 한국의 최적 수도요금결정에 관한 연구)

  • Kim, Tai-Yoo;Yoo, Seung-Hoon;Park, Chung-Hyun
    • Journal of Korean Society of Water and Wastewater
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    • v.10 no.3
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    • pp.100-114
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    • 1996
  • Besides insufficient water, water contamination confronts us with 'water crises' of both quantity and quality. However, the daily water consumption per capita of Korea is greater than that of other developed countries. Because of the current low water price, which is lower than a half of production cost, not only does it become difficult to cope promptly with rapidly increasing water demand and water contamination, but it also causes waste of water. We should, therefore, switch over from supply side management-oriented policy to demand side management-oriented policy through a raise of the water rate. This study carries out a cost analysis based on fair return method which is the principle of water pricing in Korea, and it estimates, through equilibrium analysis, long run marginal cost(LRMC), which satisfies allocative efficiency and reflects true social cost to additional one-unit water supply. Based on the results, this study proposes that the estimated LRMC is the optimal price level in water pricing, which is the most important of the demand side management policies. In the end, water conservation effect, price pervasive effect, and social welfare effect are analyzed.

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Development of a Tractor Attached TMR Mixer(III) -Cost analysis- (트랙터 견인형 TMR 배합기의 개발(III) -경제성 분석-)

  • Park, K. K.;Kim, H. J.;Seo, S. H.;Nah, K. D.;Hong, D. H.;Jang, C.;Ha, Y. S.;Lee, J. S.
    • Journal of Biosystems Engineering
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    • v.25 no.4
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    • pp.265-272
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    • 2000
  • Feasibility of the self-TMR mixing/feeding system for dairy farm in Korea was analyzed by comparing with a traditional feeding system. The total operating cost of self-TMR feeding system decreased with an increase of farm size. However, the cost was higher than that of traditional feeding system because of its high purchasing cost of TMR mixer as an initial investment. Profit per unit input of the TMR feeding system became greater over the traditional system when the farm size is larger than 17 heads due to more and better milk production. The profitable discrepancy became bigger as dairy farm size increases.

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Influence of Dietary Butyrate on Growth Rate, Efficiency of Nutrient Utilization and Cost of Unit Gain in Murrah Buffalo (Bubalus bubalis) Male Calves

  • Vidyarthi, V.K.;Kurar, C.K.
    • Asian-Australasian Journal of Animal Sciences
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    • v.14 no.4
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    • pp.474-478
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    • 2001
  • Eighteen Murrah male buffalo calves were allotted into three groups of six each. The calves in group I (control) were fed with whole milk, skim milk, calf starter and green maize fodder. The calves in group II (high butyric acid) and group III (low butyric acid) were fed with the same diet as control along with 24 ml and 12 ml of butyric acid/calf/day for 120 days, respectively for 120 days. Dry matter intake was higher in group II and III as compared with group I. Digestibility of dry matter, organic matter, crude protein, crude fibre, ether extract, neutral detergent fibre, acid detergent fibre, cellulose and hemicellulose was the highest in group II followed by group III and the control group. Body weight gain and conversion efficiency of dry matter, digestible crude protein and total digestible nutrients were better in group II. Cost of feed for per unit of live weight gain was the lowest in group II. It was concluded that dietary addition of butyric acid (24 ml/day) was economical and had positive effect on the performance of Murrah buffalo calves.

Economic Evaluation with Uncertainty Analysis of Glycerol Steam Reforming for the H2 Production Capacity of 300 m3 h-1 (수소 생산 규모 300 m3 h-1급 글리세롤 수증기 개질반응에 대한 경제적 불확실성 분석)

  • Heo, Juheon;Lee, Boreum;Kim, Sehwa;Kang, Sung-Mook;Lim, Hankwon
    • Applied Chemistry for Engineering
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    • v.29 no.5
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    • pp.589-593
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    • 2018
  • In this paper, an economic evaluation with the uncertainty analysis using a Monte-Carlo simulation method was performed for the glycerol steam reforming to produce $H_2$ at a capacity of $300m^3h^{-1}$. Fluctuations in a unit $H_2$ production cost were identified based on the variation of key economic factors at ${\pm}10-{\pm}40%$ and the probability of 30.9% was obtained for a previously reported unit $H_2$ production cost of 5.10 $ $kgH{_2}^{-1}$. In addition, fluctuations in the B/C ratio were obtained by varying the fixed capital investment (${\pm}20%$), cost of manufacturing (${\pm}20%$), revenue (${\pm}20%$), and discount rate (2-10%) and the probability ranging from 17 to 55% was observed to meet a minimum B/C ratio of 1 for the economic feasibility of the glycerol steam reforming to produce $H_2$.