scholarly journals Study on Key Cost Drivers of Prefabricated Buildings Based on System Dynamics

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Na Lou ◽  
Jingjuan Guo

The prefabricated building as a major initiative has been put forward by China in recent years to promote the transformation and upgrading of the construction industry, but its rapid development also faces high cost constraints. Therefore, it is necessary and urgent to study the key cost drivers and cost control paths of prefabricated buildings. Most of the current research focuses on the construction cost of prefabricated building as a static object. This article, on the other hand, regards the construction cost of prefabricated building as a dynamic formation process and conducts systematic research from product systems, technical systems, construction processes, and management modes. The influence factors of prefabricated building cost are defined and screened with the help of HSM and previous research results. A cause-and-effect model and cost control model of prefabricated building cost driver are established. Based on the model test of the actual project, the cost generation of prefabricated buildings is simulated. Through sensitivity analysis, key cost drivers of prefabricated building are identified and ranked as degree of design standardization, unit price, prefabrication rate, information technology level, transportation mode, labor level, machinery level, transportation distance, etc. Accordingly, corresponding strategies are proposed for the cost control of prefabricated buildings.

This paper illustrates how to use case study method to conduct the cost driver research at hospitals by identifying activity-based cost drivers at the nuclear medicine unit (NMU) of a teaching hospital. I argue that recognizing the activity-based cost could improve the accuracy of estimating costs by identifying the underutilized resources and value-added and non-value-added cost drivers, to reduce non-value-added costs; thereby, facilitating the management to make better informed managerial decisions (e.g., improving pricing practices and using resources more efficiently). Therefore, I believe that this study may provide a useful inference to hospitals to improve the quality and quantity of the service, which they (or would) provide. Furthermore, this paper possibly provides an informative research methodology for researchers by showing how to extend the current literature by applying the same cost analysis research model on a different dataset for the health care industry research.


2018 ◽  
Vol 2 (3) ◽  
Author(s):  
Xuhua Shao ◽  
Yayong Li ◽  
Runbing Yang ◽  
Chunhui Chen

In recent years, with the rapid development of China’s social economy, significant advances have also been made in the field of construction engineering. At the same time, with the advancement of urbanization and the increase in the demand for the construction of various infrastructure and service facilities, the number of construction projects has continued to increase. In project construction, project cost control plays a vital role. Implementing effective cost control measures at all stages of the project is an important task to ensure the company's economic benefits. Hereon, this article focuses on the importance of project cost, the factors that affect the cost control, and the related measures to reasonably control the cost at various stages of the project. It is hoped that this will have a certain reference value and will contribute to the improvement of project cost management and control. 


2020 ◽  
Vol 4 (2) ◽  
pp. 310-322
Author(s):  
Syamsu Alam

This study aims to trace the absorption of overhead costs in the production process at Sabbena Soppeng's silk house, to identify appropriate cost drivers in allocating overhead costs to products that are accurate and do not occur distortion. This research uses descriptive method. Collecting data through interviews, observation, documentation. The analysis was carried out by applying a two-stage activity-based costing model. First, trace overhad costs to the “cost pool”. Second, trace the overhead costs to the product using multiple cost drivers. The results showed: a) the product category " Kain Sutera" shows a smaller difference of Rp. 3,253.62; b) product category "Sarung sutra ST-0 Standar" shows a bigger difference of Rp 10,997.4; c) product category "Sarung sutera ST-1 Standar" shows a bigger difference of Rp 22,420.49; d) product category "Sarung sutera ST- Sedang" shows a bigger difference of Rp. 28,352.51; e) product category “Sarung Sutera ST-ASL” shows a bigger difference of Rp. 278,342.75. The difference is due to the fact that the traditional overhead system does not use several cost drivers. Meanwhile, the ABC system uses a multi cost driver in charging BOP. So that with the ABC System it is considered that the BOP allocation is more accurate. Keywords : Activity Based Costing, Cost of Production.


2018 ◽  
Vol 11 (6) ◽  
pp. 100-111
Author(s):  
V. B. Frolova ◽  
T. F. Khan

The subject of research is a set of methodological and practical aspects of assessing the cost factors of food companies. The study of the above factors is becoming relevant under the current conditions of environment instability and the necessity to stimulate investment, given the low elasticity of demand for products in this sector. The purpose of the research was to confirm the hypothesis of a variety of cost drivers that form the financial result of companies in a developed and emerging markets by an example of 39 food retailers in an emerging market and 48 companies in developed markets based on a system approach and the comparison method using elements of factor and correlationand-regression analysis. The research findings obtained are as follows: the choice of indicators for the regression analysis of cost factors mostly of a multiplicative type is substantiated; the research was carried out using the indicator of financial result less the tangible assets depreciation; to clarify the results of the research, the elements of the comparative analysis were applied, with the companies classified into four groups where Lenta and X5 were in the group of the most efficient companies of the first quantile, and Dixie fell into the group of the fourth quantile companies that had difficulty in generating their own funds; the cost drivers of food retailers in emerging and developed markets were identified. It is concluded that the cost driver of food retailers in developed markets is profitability of sales, and in emerging markets it is the share of capital inputs in sales revenues. It has been established that the growth rate of consumer consumption plays a key role in the retail market of all countries. At the same time, there is a market tendency to oust small companies by large players whose assets have a higher level of investment demand. The novelty of the research lies in using by the authors the EBITA profitability indicator in the regression model, where EBITA is the profit before tax, interest and intangible assets depreciation.


Author(s):  
Xuhua Shao ◽  
Yayong Li ◽  
Runbing Yang ◽  
Chunhui Chen

In recent years, with the rapid development of China’s social economy, significant advances have also been made in the field of construction engineering. At the same time, with the advancement of urbanization and the increase in the demand for the construction of various infrastructure and service facilities, the number of construction projects has continued to increase. In project construction, project cost control plays a vital role. Implementing effective cost control measures at all stages of the project is an important task to ensure the company's economic benefits. Hereon, this article focuses on the importance of project cost, the factors that affect the cost control, and the related measures to reasonably control the cost at various stages of the project. It is hoped that this will have a certain reference value and will contribute to the improvement of project cost management and control. 


Author(s):  
Paul Burdett ◽  
Gregory Y H Lip

Abstract Background Atrial fibrillation (AF) is the most common sustained heart arrhythmia and a major preventable cause of stroke, heart failure and dementia. AF already accounts for a significant amount of National Health Service (NHS) funding, and over the coming years is highly likely to impose a growing cost on NHS budgets and the wider UK health care system. We therefore need greater understanding of the main cost drivers (e.g. hospitalisations) of this increasingly prevalent arrhythmia. Such data would help with NHS resource planning over the next decades. Methods Based on prior published data, we initially calculated the cost of AF for 1995, and then again for 2000 which was calculated from a combination of contemporary and extrapolated data from that time. These data have been used as the basis for forecasting AF costs in the UK and as a share of total NHS expenditure. AF direct costs were split between cost driver categories; General Practioner (GP) consultations, GP referred OPD (Out Patient Department) visits, prescriptions and monitoring visits, primary admissions and post-discharge OPD visits. Forecast assumptions used: (i) NHS expenditure from 2020 onwards assumed to increase at annual rate of 3%/year; and (ii) the UK inflation rate to increase by 2% annually. Sensitivity modelling of 3%, 4% and 6% projected annual increase in AF prevalence amongst the population was applied. Results The estimated direct and proportion of NHS expenditure of AF in 2020 for each of the assumed increases of 3%, 4% and 6% would be £1,435m (0.91%), £1,741m (1.11%) and £2,548m (1.62%) respectively. For 2030, the modelling would mean that the direct costs of AF and proportion of NHS expenditure would be £2,351m (1.11%), £3,141m (1.48%), £5,562m (2.63%), respectively. For 2040, the modelling shows that the direct costs of AF and proportion of NHS expenditure would be £3,851m (1.35%), £5,668m (1.99%), £12,143m (4.27%), respectively. By far the largest contributor to the total direct AF costs in 2020 was for Primary Admissions (nearly 60%), with a further 7% with post-discharge Outpatient Clinic visits. Taken together the total for these two categories in 2020 would cost the NHS between £949m and £1,685m, depending on the projected increase in annual rate of AF prevalence. The full cost of AF related hospitalisations may be underestimated, due to the other admissions associated with a secondary coding of AF, which in 2020 are forecast to cost between £2,269m and £4,030m, depending on the annual population increase of AF prevalence. There will be an increasing number of patients discharged to a nursing home after a hospital admission associated with a principal AF diagnosis, with cost estimates for this in 2000 being £111m, and predicted to rise to between £346m and £614m by 2020. Conclusions Focussing on 2020, AF is predicted to directly cost the NHS a total of a minimum of £1,435m and a maximum of £2,548m (depending on AF prevalence); hence, between 0.9-1.6% of NHS expenditure, mostly from primary admissions. The total direct costs of AF would increase to 1.35-4.27% of NHS expenditure, over the next 2 decades. If hospitalisations can be avoided or reduced, we would substantially reduce the healthcare costs of AF to the NHS.


2012 ◽  
Vol 433-440 ◽  
pp. 1705-1709
Author(s):  
Tao You ◽  
Zhuo Hong Yao ◽  
Wei Wang

A qualitative analysis has been made on the slow development of the engineering project management and corresponding cost control method which has been the bottleneck of the rapid development in the engineering industry and construction production. The economic development of the market and the changing investigation subjects urgently need the reform and renewal to the current engineering project management and the cost control. The unification of engineering project management system in China to the international practice after reform not only adapts the requirements of national economic market development, but also creates conditions for the Chinese construction enterprises to participate in the international construction market successfully.


2016 ◽  
Vol 20 (4) ◽  
pp. 28-45 ◽  
Author(s):  
Riccardo Giannetti ◽  
Laura Risso ◽  
Lino Cinquini

Purpose The aim of this paper is to explore the managing of cost drivers using a business model (BM) design. Particularly, the paper explores the link between a BM and cost driver analysis adopting a service-dominant logic (SDL) perspective. The empirical domain addresses the dynamic and complex scenarios of electric cars, where many actors are involved, several marketing and technological aspects are still unclear and where the high cost of batteries delays the wide diffusion of electric vehicles. The paper explores how SDL could support the BM design and how the cost driver analysis and BM design are linked when the SDL perspective is adopted. Design/methodology/approach This paper analyses secondary data and findings collected by interviews performed with managers belonging to the automotive sector. Findings The results show that the BM design could be a solution to address cost problems and the cost driver analysis may play a role in formulating an economically sustainable BM. Splitting a product into a “package of services” can provide direction for research of an alternative BM design in an attempt to manage the impact of cost drivers and pursue economic sustainability. Originality/value This paper explores a topic that has not yet focused on cost management research, i.e. the link between BM and cost driver analysis adopting an SDL perspective.


2020 ◽  
Vol 2 (1) ◽  
pp. 13
Author(s):  
Mengli Li

<p>As a pillar industry in China, the construction industry is developing rapidly at this stage. In order to better promote the development of the construction industry, it is necessary to reasonably ensure the economic benefits of the project and do a good job in the cost management of the project. Based on this, this paper analyzes the construction cost control and management measures, aiming to take effective measures to control the construction cost and promote the better development of the construction project.</p>


2021 ◽  
Vol 248 ◽  
pp. 03026
Author(s):  
Yujia

With the rapid development of China's economy and technology, great progress has been made in all fields. Especially in the field of decoration engineering, great breakthroughs have also been made. The strength of enterprises continues to increase, and the gap between enterprises continues to narrow. In this context, how to strengthen the cost control of decoration enterprises and continuously improve their own strength has become an urgent problem. Based on this, this article carried out the budget analysis of the decoration project and analyzed the problems existing in the enterprise cost budget control. Finally, this paper proposes a series of measures such as unifying the cost budget specifications, continuously improving the project cost budget control system, and strengthening the project cost budget monitoring.


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