Kim LaScola Needy

The Economic Benefits of Green Buildings: A Comprehensive Case Study

Several studies suggest green construction can result in significant economic savings by improving employee productivity, increasing benefits from improvements in health and safety, and providing savings from energy, maintenance, and operational costs. This article quantifies these benefits by establishing a set of measurable performance and building attribute variables, collecting longitudinal data, statistically analyzing the results, and performing sensitivity analyses for a precast concrete manufacturing facility located near Pittsburgh, Pennsylvania. Productivity, absenteeism, energy, and financial data are presented and an engineering economic analysis is reported. Results show that in the new facility manufacturing productivity increased by about 25%; statistically significant absenteeism results varied; and energy usage decreased by about 30% on a square foot basis. Considering all aspects, the economic analysis showed that the company made the correct decision to build a new green facility.

WORKER ASSIGNMENT IN CELLULAR MANUFACTURING CONSIDERING TECHNICAL AND HUMAN SKILLS

This paper considers the problem of assigning workers to manufacturing cells in order to maximize the effectiveness of the organization. Organization effectiveness is assumed to be a function of the productivity, output quality, and training costs associated with a particular worker assignment. Traditionally, these worker assignments have been based only on the technical skills of the workers. The proposed model also includes human skills and permits the ability to change the skill levels of workers by providing them with additional training. The problem is formulated as a mixed integer programming problem. A total of 32 test problems were developed and varied with regard to the total training time, the available training time for each worker, the training costs, the productivity coefficients and the quality level coefficients. Results indicate that this model provides better worker assignments than one that only considers technical skills.

Human related issues in manufacturing cell design, implementation, and operation: a review and survey

The application of cellular manufacturing in batch-type environments is a well-known manufacturing strategy that typically improves manufacturing efficiency by utilizing the philosophy of group technology. It is also important that for the successful implementation of cellular manufacturing, that one focuses both on technical issues (cell formation and design) and human issues. Unfortunately, human issues are typically not examined as rigorously as often as technical issues. This paper presents an overview and evaluation of the diverse range of human issues involved in cellular manufacturing based on an extensive literature review. Further, a survey to determine the importance of eight different human issues in cellular manufacturing was administered to a sample of academics, managers, and workers involved in cellular design and implementation results are presented and discussed.

A Classification Scheme for the Process Industry to Guide the Implementation of Lean

Abstract: Lean manufacturing has traditionally been thought of as being applicable mostly to the discrete manufacturing industries since the process sector lends itself less naturally to many lean techniques. There is, however, considerable interest in extending lean to the process industries because of its dramatic results in the discrete sector. We argue that different lean techniques can be applied in varying degrees depending on the specific characteristics of the process environment. In this article we develop a general classification scheme for the process industry, which managers of companies in this sector can use in order to identify and guide the implementation of specific lean techniques that could be applicable to them.

A Procedure for Smooth Implementation of Activity-Based Costing in Small Companies

Abstract: This article describes a procedure that allows companies to easily switch from a traditional costing system to an activity-based costing (ABC) system. The procedure is particularly useful to small companies (less than 100 employees) for which the standard implementation of ABC is too expensive and complex. The method, which consists of eight easy-to-follow steps, leads a company through the Coopers two-stage activity-based costing model. At first, decision makers determine cost information, which can be obtained via an educated guess, a systematic appraisal, or actual data collection. The method used to collect the data would depend on the level of accuracy desired and the amount of money assigned to this endeavor. Next, the overhead expenses such as administration, rent, utilities, and transportation are compiled into product cost information using newly developed matrices. Using these matrices, cost-related calculations become easy and overhead costs are traced without difficulty to the cost objects in the final step. The ease of use of the proposed procedure is illustrated using actual data from a small manufacturing company located in western Pennsylvania.

Integrating Activity-Based Costing and Economic Value Added in Manufacturing

AbstractThis article presents a cost and perfonnance measurement system that integrates activity-based costing (ABC) with the economic value added financial perfonnance measure. This proposed ABC-and-EVA system is a management support tool for managing costs and capital. The integrated ABC-and-EVA system includes the rate of resource consumption (like traditional ABC), but it also includes capital demand. Implementation steps are illustrated. A traditional ABC system is compared with an ABC-and-EVA system by examining the cost for each activity at the first stage. A firms capital information is then transformed into transparent capital charges using a newly developed method called activity-capital dependence (ACD) analysis. Changes to the end-product costs and possible changes to corporate strategies and business perfonnance in the proposed ABC-and-EVA system are discussed.

Implementing Activity-Based Costing Systems in Small Manufacturing Firms: A Field Study

Abstract: This article describes the results of a field study involving the implementation of activity-based costing (ABC) in three small manufacturing companies. Similarities and dissimilarities regarding company business, customer distribution, fixed-to-variable cost ratio, and costing system needs are presented. A cost and time efficient methodology for developing and implementing ABC in small manufacturing companies is presented. The ABC companies, implementation methodology, and research findings are discussed. In addition, the potential impacts of ABC implementation at these three companies are examined.

METHODS FOR HANDLING UNCERTAINTY IN ACTIVITY BASED COSTING SYSTEMS

ABSTRACT Activity based costing (ABC) systems are implemented with the purpose of obtaining accurate product and process cost information. Due to extensive data requirements, ABC input data are often estimated which leads to inherent imprecision and uncertainty in these systems. The objective of this research is to develop and compare methods for handling this inherent data imprecision and uncertainty within ABC systems. Four methods of uncertainty analysis are explored; interval mathematics, Monte Carlo simulation with triangularly distributed input parameters, Monte Carlo simulation with normally distributed input parameters, and fuzzy set theory. Based on a comparative cost/benefit analysis, Monte Carlo simulation and fuzzy set theory are found to be superior to interval mathematics as methods for handling uncertainty in ABC systems.

An Examination of the Economic Benefits of ISO 9000 and the Baldrige Award to Manufacturing Firms

Abstract: This article reviews the financial data of manufacturing companies who are ISO 9000 certified and the winners in the manufacturing category of the Malcolm Baldrige National Quality Award to examine whether the benefit of receiving ISO 9000 certification or winning the Baldrige award is economically attractive. A comparison of costs versus benefits associated with obtaining ISO 9000 registration is performed for ISO 9000, while stock performance is examined for the Baldrige winners. Results show that the economic success reported by companies who received ISO 9000 certification and Baldrige awards may be exaggerated and that this success certainly cannot be guaranteed. Recommendations for further study are presented.

FUZZY ACTIVITY BASED COSTING: A METHODOLOGY FOR HANDLING UNCERTAINTY IN ACTIVITY BASED COSTING SYSTEMS

Abstract Activity based costing (ABC) systems are often developed using estimated input data. A methodology based on fuzzy set theory has been developed to handle estimation imprecision and uncertainty in ABC systems. This methodology creates a new type of ABC system; a fuzzy activity based costing (FABC) system. This paper introduces the concepts behind FABC, discusses the FABC system development process, and presents a FABC system that was developed for a mid-sized pharmaceutical company. Compared to ABC analysis, the developed FABC system provides additional and more valuable decision making information to the company.