• Journal of Information Technology Services
• /
• v.6 no.3
• /
• pp.87-110
• /
• 2007

Recently, researches on IT Service Management (ITSM) for improving information system operation service and information system outsourcing cost estimation model are proliferating. This study suggests a new cost model of IT operation service and optimizing method based upon the characteristics of operation service as a long-term and continuous business service for both user's and service provider's point of view. This study explains the cost optimization model of IT operation service by improving service request management process, such as adequate reception and control, proper valuation, process management using project management methodology, effective organization and time management of service personnel. Especially in this study, service ability improvement effect and fixed operation cost reduction effect are defined to prove the proposed new cost model.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.35 no.3
• /
• pp.148-154
• /
• 2012

The purpose of this study is to develop measurement items for quality cost in service industries. Quality cost is necessary in order to evaluate quality management activities. It is clear that the quality cost in service industry is different from manufacturing industry. Generally, in service industries, quality cost is very difficult to assess because it has a unique characteristics. This paper proposes an effective method for measuring quality cost in service industries. Based on the PAF (Prevention, Appraisal, Failure) cost model, we utilizes the concept of five demensions in SERVQUAL which are tangibles, reliability, responsiveness, assurance, empathy. This paper also presents to a standard model for quality cost measurement in service industries.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.6 no.8
• /
• pp.93-103
• /
• 1983

In this paper, we study an optimal service policy of the M/M/2/K queueing system with two types of customers. The incurred costs consist of waiting cost, service cost and incurred costs consist of waiting cost, service cut and changeover cost. The changeover cost occurs when a server who assigned to serve a particular type of customers reassigned to the other types of customers. Two servers serve two types of customers who arrive to the two separate queues. The two types of customers differ in respect of their arrival rate, service rate, waiting cost, and service cost. The servers require a policy, for determining when they should change their service type, which minimizes the long run expected total cost. The policy is obtained by a Markov decision process model that consists of a finite number of states and actions. In order to find the optimal service policy, we define states and actions of the system, compute onestep transition probabilities, and apply to the successive approximations algorithm.

• KSII Transactions on Internet and Information Systems (TIIS)
• /
• v.17 no.11
• /
• pp.3030-3049
• /
• 2023

With the development and wide application of hybrid network computing modes like cloud computing, edge computing and fog computing, the customer service requests and the collaborative optimization of various computing resources face huge challenges. Considering the characteristics of network environment resources, the optimized deployment of service resources is a feasible solution. So, in this paper, the optimal goals for deploying service resources are customer experience and service cost. The focus is on the system impact of deploying services on load, fault tolerance, service cost, and quality of service (QoS). Therefore, the alternate node filtering algorithm (ANF) and the adjustment factor of cost matrix are proposed in this paper to enhance the system service performance without changing the minimum total service cost, and corresponding theoretical proof has been provided. In addition, for improving the fault tolerance of system, the alternate node preference factor and algorithm (ANP) are presented, which can effectively reduce the probability of data copy loss, based on which an improved cost-efficient replica deployment strategy named ICERD is given. Finally, by simulating the random occurrence of cloud node failures in the experiments and comparing the ICERD strategy with representative strategies, it has been validated that the ICERD strategy proposed in this paper not only effectively reduces customer access latency, meets customers' QoS requests, and improves system service quality, but also maintains the load balancing of the entire system, reduces service cost, enhances system fault tolerance, which further confirm the effectiveness and reliability of the ICERD strategy.

• Health Policy and Management
• /
• v.20 no.2
• /
• pp.40-52
• /
• 2010

Health insurance fees are set by relative value scales and conversion factors. Since 2008 the conversion factor has been classified into 7 according to the provider type, and a separate contract has been made respectively. As such classification of the conversion factor reflects only the different characteristics of providers, however, further classification to reflect the different cost structures of providers is proposed. Cost varies according to the type of not only providers but also services each provider supply. In fact different cost structures of providers are the result of their different services. This study analyzed the cost structure of medical services to propose a new approach to the classification of the conversion factor. This study analyzed the cost structure of medical services using cost data constructed in the revision study of relative value scales. The cost data consist of doctor's fee, support staff's fee, cost of medical equipments, cost of medical supplies and indirect cost. The proportion of each cost component to the total cost was analyzed in terms of service department and service type. 72 service groups are defined in terms of the combination of service department and service type. Through cluster analysis, 72 service groups were reduced into 7 clusters each of which has a similar cost structure. Conversion factor is contracted annually to reflect the change in the cost of providing medical services. So the classification of conversion factor has to be based on the cost structures of medical services, not the characteristics of providers. Service clusters derived in this study can be used as a new classification for health insurance fee contract.

• Journal of the Korean Society of Safety
• /
• v.24 no.5
• /
• pp.48-56
• /
• 2009

This paper presents the procedure for the optimal design of a PSC-I girder bridge considering life cycle cost (LCC). The load carrying capacity curves for the concrete deck, PSC-I girder and $\pi$-type pier were derived and used for the estimate of service lives. Total life cycle cost for the service life was calculated as sum of initial cost, damage cost, maintenance cost, repair and rehabilitation cost, user cost, and disposal cost. The advanced First Order Second Moment method was used to estimate the damage cost. The optimization method was applied to the design of PSC-I girder bridge. The objective function was set to the annual cost, which is defined by dividing the total life cycle cost by the service life, and constraints were formulated on the basis of Korean Standards. The optimal design was performed for various service lives and the effects of design factors were investigated.

• Asia pacific journal of information systems
• /
• v.13 no.3
• /
• pp.85-106
• /
• 2003

Recently, firms which have offered a "free Internet service" to their customers, are considering a "charged Internet service" for increasing a company's profit. But they have doubts about the results, because consumers may fly away from their web-site easily and may discontinue using their services. The purpose of this study is to investigate which factors make consumers use the charged Internet services. To do this, the factors, which are ease of using the service, usefulness of the service, the reputation of the service provider, service cost, and the intention to use the service as a mediator, are analyzed. To achieve this research objective, a structural equation model was constructed and a field study method was used. The findings are summarized as follows: First, ease of using the service, usefulness of the service, and service cost have significant impacts on the charged Internet service usage through the intention to use. Especially, although service cost influences on the service usage largely, the usefulness of the service has a bigger impact on the charged Internet service usage than service cost. Second, the reputation of the service provider does not have any impact on the service usage. Third, consumers using only the free Internet service tend to hesitate about using the "charged Internet service" because they doubt its ease of use and usefulness in spite of the service cost.

• Journal of Distribution Science
• /
• v.21 no.4
• /
• pp.21-33
• /
• 2023

Purpose: To study, analyze, and investigate how to improve the service quality distribution and perceived value of passenger loyalty in low-cost airlines in Thailand. Research Design, data, and methodology: The data was collected from low-cost airline passengers who had used low-cost airlines within Thailand more than twice in the last 12 months. In total, 632 questionnaires were received, representing 97.32%, and in-depth interviews were done using the semi-structured technique. The key informants were either executives or representatives from 4 low-cost airlines operating in Thailand. We utilized structural modeling techniques to examine the data relevant to the investigation. Results: The results show that low-cost airline passengers in Thailand have strong opinions about the perceived value of the passenger loyalty of low-cost airlines within this sector of the Thai air travel industry. The variables were sorted in order of importance and included passenger loyalty, satisfaction, trust, perceived value, and service quality distribution. The relationship between the service quality distribution variables and the significance in relation to passenger loyalty according to low-cost airlines in Thailand showed that service quality distribution had a positive effect on perceived value and that passenger satisfaction has a direct positive effect on passenger loyalty. Conclusions: The 8 QPSTL strategy is successful in terms of service quality distribution and passenger satisfaction, therefore it is an important aspect of low-cost airlines in Thailand.

• Journal of Distribution Science
• /
• v.16 no.3
• /
• pp.69-77
• /
• 2018

Purpose - As more low cost carriers are introduced, the competition between the low cost carriers to become the nation's leading low cost carrier is also being intensified. The purpose of this study is to select various choice attributes for low cost carrier and figure out important factors that customers take into account for low cost carrier selection. The study also involves in establishing the relationship between perceived value, customer satisfaction, and customer behavior Intention, in an effort to identify choice attributes that are important to customers' low cost carrier. Research design, data, and methodology - To examine these research models, samples were collected from 247 peoples who visited In-Cheon international Airport during June, 2017. Results - The results of the study showed that, 'reservation service', 'airport service', 'in-flight service', and 'price' services have a significant effect on the perceived value of the choice attributes. While 'reservation service', 'airport service', 'in-flight service', and 'flight operation service' have a significant effect on the customer satisfaction of the choice attributes, perceived value has a significant effect on customer satisfaction. Perceived value has a significant effect on customer behavior intention. Finally, customer satisfaction has a significant effect on customer behavior intention. Conclusions - Flight operation service has no significant effect on perceived value of the choice attributes of low cost carriers, which indicates that the low cost carriers have not yet been well-established in the flight operation service sector. It seems likely that low cost carrier will be able to gain a competitive advantage over other companies if they expand their routes and improve the convenience of flight connections. In addition, the results show that the price service does not have a significant effect on customer satisfaction of the choice attributes of low cost carriers. From this, we may assume that the airline ticket prices of low cost carriers are already low, and the price cannot be a deciding factor in the competitive advantage of low cost carriers. To achieve higher customer satisfaction of the choice attributes, companies should strengthen the competitiveness of 'reservation service', 'airport service', 'in-flight service', and 'flight operation service'.

• Journal of Korean Academic Society of Home Health Care Nursing
• /
• v.7 no.1
• /
• pp.26-38
• /
• 2000

The purpose of this study was to estimate home care nursing cost for the patient with Cerebrovascular Disease based on a bundle of home care nursing services This study was conducted through four steps. The first step was to investigate home care nursing activities that were offered to the patient with Cerebrovascular Disease(CD) by home care nurse. The second step was to investigate the time spent on home care nursing service and to calculate labor and manufacturing cost. The third step was to calculate home care nursing cost per minute. And at the fourth step, home care nursing cost for a patient with Cerebrovascular Disease based on a bundle of home care nursing service was calculated. The results of the study were as follows: 1) The number of direct home care nursing activities for the patient with CD was 108, and the time of each activity was spent from 1 to 10 minutes. 2) Average time per visit was 51 minute, and the firs visit time were spent 1.6 times higher than 2nd visit time. 3) Nursing cost per minute(cost per visit ${\\}\;22,565\;\div\;$ average time per visit 51 minutes) was ${\\}\;442$. The cost per visit was calculated on Basic visiting cost(nurse's labor cost ${\\}\;15,760$ + management cost ${\\}\;6,805$) divided by average time per visit(51 minutes). 4) Home care nursing cost to the patient with CD based on bundle of home care nursing service was consisted of basic home care nursing cost, the cost of a bundle of service practiced on visit. and transportation fee. Basic home nursing cost(the time spent on basic home nursing service 20 minutes ${\times}$ nursing cost per minute ${\\}\;442$) was ${\\}\;8,840$. The cost of the bundle of home care nursing services to the patient with CD was calculated as self care ${\\}\;2.898$, Tracheostomy care ${\\}\;10,166$, immobility care ${\\}\;6,188$, sore care ${\\}\;6,188$. Foley care ${\\}\;6,630$, and Levin tube or Gastrostomy care ${\\}\;7.514$. Transportation fee which was composed of the labor cost for transportation(${\\}\;5,122$) and the car management cost(${\\}\;3.876$) was ${\\}\;8,998$. Home care nursing cost to the patient with CD based on bundle of home care nursing services consisted of basic home care nursing cost, the cost of a bundle of service practiced on visit, and transportation fee. It will contribute to improve quality of home care service, because of giving appreciate incentives to home care nurses. And it will be more efficient than current cost of hospital based home care. But it need to management than calculation of the current fee-for-services of home care.