Quantifying the Tangible Value of a Smart Field Asset Implementation Leveraging on Digital Technology and Automation, Taking into Account the Intangible Value Element

2021 ◽  
Author(s):  
ElFadl Z. Ibrahim ◽  
Mariam A. Al Hendi ◽  
Abdulla Al-Qamzi ◽  
Nasser A. Ballaith ◽  
Dr Esra Y. Al Hosani ◽  
...  
Keyword(s):  
Net Present Value ◽  
Qualitative Description ◽  
Innovative Technology ◽  
Executive Management ◽  
Hurdle Rate ◽  
Mind Set ◽  
The Mind ◽  
The Cost ◽  
Digital Oilfield ◽  
Flow Graphs

Abstract The value calculation for a new digital and innovative technology is often requested by the executive management to justify the cost required for the implementation and maintenance of the technology. The value is normally segregated into a tangible and intangible value that correspond to a quantitative and qualitative description of those value elements. As part of the Digital Oilfield (DOF) assessment, the solution value has been defined using two approaches. Firstly, qualitative value is described using a "FEATURE_BENEFIT_VALUE" model. The qualitative value elements have been grouped to align with the company strategic pillars to achieve its vision. Secondly, the quantitative value has been estimated using an NPV model. It estimates the value of the complete digital solution (combined investment for all domains) being proposed for the Asset. The model estimates the net present value (NPV) of the expected Asset investment in digital enablement and digital capability as defined in the assessment report. Net cash flow graphs are also calculated. The approach used is to calculate an NPV for a GO-NOGO decision. Therefore, a conservative estimate of NPV is made with the mind-set that if even being conservative, the NPV clears the company's hurdle rate for such projects, then the decision to invest is undertaken. Sensitivity analysis has been performed using conservative estimates of production gain enabled by digital and conservative oil prices. The paper will detail out the approach for the value quantification of a DOF solution that will also correspond to the industry guidance. Example on how the value is calculated will also be outlined.

IMPROVEMENT OF INNOVATIVE ACTIVITY OF THE ENTERPRISE

2017 ◽  
Author(s):  
Nataliya Stoyanets ◽  
◽  
Mathias Onuh Aboyi ◽  
Keyword(s):  
Value Chain ◽  
Net Present Value ◽  
Successful Implementation ◽  
Innovative Development ◽  
Technological Equipment ◽  
Alliance Partner ◽  
Innovation Potential ◽  
Wide Range ◽  
Technological Platform ◽  
The Cost

The article defines that for the successful implementation of an innovative project and the introduction of a new product into production it is necessary to use advanced technologies and modern software, which is an integral part of successful innovation by taking into account the life cycle of innovations. It is proposed to consider the general potential of the enterprise through its main components, namely: production and technological, scientific and technical, financial and economic, personnel and actual innovation potential. Base for the introduction of technological innovations LLC "ALLIANCE- PARTNER", which provides a wide range of support and consulting services, services in the employment market, tourism, insurance, translation and more. To form a model of innovative development of the enterprise, it is advisable to establish the following key aspects: the system of value creation through the model of cooperation with partners and suppliers; creating a value chain; technological platform; infrastructure, determine the cost of supply, the cost of activities for customers and for the enterprise as a whole. The system of factors of influence on formation of model of strategic innovative development of the enterprise is offered. The expediency of the cost of the complex of technological equipment, which is 6800.0 thousand UAH, is economically calculated. Given the fact that the company plans to receive funds under the program of socio-economic development of Sumy region, the evaluation of the effectiveness of the innovation project, the purchase of technological equipment, it is determined that the payback period of the project is 3 years 10 months. In terms of net present value (NPV), the project under study is profitable. The project profitability index (PI) meets the requirements for a positive decision on project implementation> 1.0. The internal rate of return of the project (IRR) also has a positive value of 22% because it exceeds the discount rate.

Evolution de la gestion des chablis ces 50 dernières années dans la région du Bas-Valais (essai)

2015 ◽  
Vol 166 (3) ◽  
pp. 129-134
Author(s):  
Roland Métral
Keyword(s):  
Natural Hazards ◽  
Dead Wood ◽  
Task Force ◽  
Critical Assessment ◽  
Forest Dieback ◽  
Research Activities ◽  
Mind Set ◽  
The 1960S ◽  
The Mind ◽  
Management Priorities

Trends in windthrow management during the last 50 years in Lower Valais (essay) A review on the measures taken in forests hit by storms during the last 50 years reveals the mind-set behind the evolution of management operations. In the 1960s, to remove all dead wood in a stand was perfectly normal due to timber prices. Between 1984 and 1990, vast sums of money were pumped into the improvement of forest structures facing the threat of a general forest dieback. As a consequence, only few of the windthrow areas caused by storm Vivian remained with no intervention. Vivian also marked the beginning of manifold research activities and practical terrain examination in windthrow gaps. Conclusions of this first research phase resulted in a critical assessment of the windthrow areas caused by Lothar in 1999, considering different goals than systematic removal of damage wood and the prevention of bark beetle outbreaks. Since the 1990s, retaining timber after windthrow has been lively discussed, as well as the maintenance of the protection function against natural hazards and opportunities for biodiversity. Several handbooks were developed and successfully used for the planning and defining of top priority measures in damaged forests that resulted from disturbances in 2011 and 2012 in Lower Valais. These recent disturbances together with the certainty that storms will recur led to the formation of a task force in the canton Valais, aiming to organize both logistics and funds, as well as to define management priorities regarding a next hazard.

scholarly journals Economic Analysis of the Use of VCS2000 for Pork Carcass Meat Yield Grading in Korea

Animals ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 1297
Author(s):  
Juntae Kim ◽  
Hyo-Dong Han ◽  
Wang Yeol Lee ◽  
Collins Wakholi ◽  
Jayoung Lee ◽  
...  
Keyword(s):  
Economic Analysis ◽  
Net Present Value ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Feed Consumption ◽  
Cost Ratio ◽  
Benefit Analysis ◽  
Labor Costs ◽  
Meat Yield ◽  
The Cost

Currently, the pork industry is incorporating in-line automation with the aim of increasing the slaughtered pork carcass throughput while monitoring quality and safety. In Korea, 21 parameters (such as back-fat thickness and carcass weight) are used for quality grading of pork carcasses. Recently, the VCS2000 system—an automatic meat yield grading machine system—was introduced to enhance grading efficiency and therefore increase pork carcass production. The VCS2000 system is able to predict pork carcass yield based on image analysis. This study also conducted an economic analysis of the system using a cost—benefit analysis. The subsection items of the cost-benefit analysis considered were net present value (NPV), internal rate of return (IRR), and benefit/cost ratio (BC ratio), and each method was verified through sensitivity analysis. For our analysis, the benefits were grouped into three categories: the benefits of reducing labor costs, the benefits of improving meat yield production, and the benefits of reducing pig feed consumption through optimization. The cost-benefit analysis of the system resulted in an NPV of approximately 615.6 million Korean won, an IRR of 13.52%, and a B/C ratio of 1.65.

Economic considerations and decision support tool for wastewater reuse scheme planning

2007 ◽  
Vol 56 (5) ◽  
pp. 175-182 ◽  
Author(s):  
R. Hochstrat ◽  
D. Joksimovic ◽  
T. Wintgens ◽  
T. Melin ◽  
D. Savic
Keyword(s):  
Water Reuse ◽  
Net Present Value ◽  
Wastewater Reuse ◽  
Reclaimed Water ◽  
Decision Support Tool ◽  
Critical Issue ◽  
Economic Feasibility ◽  
Support Tool ◽  
The Cost ◽  
Economic Considerations

The reuse of upgraded wastewater for beneficial uses is increasingly adopted and accepted as a tool in water management. However, funding of schemes is still a critical issue. The focus of this paper is on economic considerations of water reuse planning. A survey of pricing mechanisms for reclaimed water revealed that most schemes are subsidised to a great extent. In order to minimise these state contributions to the implementation and operation of reuse projects, their planning should identify a least cost design option. This also has to take into account the established pricing structure for conventional water resources and the possibility of gaining revenues from reclaimed water pricing. The paper presents a case study which takes into account these aspects. It evaluates different scheme designs with regard to their Net Present Value (NPV). It could be demonstrated that for the same charging level, quite different amounts of reclaimed water can be delivered while still producing an overall positive NPV. Moreover, the economic feasibility and competitiveness of a reuse scheme is highly determined by the cost structure of the conventional water market.

scholarly journals Exercising Musical Minds: Phrenology and Music Pedagogy in London circa 1830

2015 ◽  
Vol 39 (2) ◽  
pp. 99-124
Author(s):  
David Trippett
Keyword(s):  
Music Pedagogy ◽  
Journal Articles ◽  
Creative Imagination ◽  
Early Nineteenth Century ◽  
Popular Appeal ◽  
Life Of The Mind ◽  
Dynamical Nature ◽  
Loss Of Contact ◽  
The Mind ◽  
The Cost

The icon of the machine in early-nineteenth-century Britain was subject to a number of contemporary critiques in which pedagogy and the life of the mind were implicated, but to what extent was education in music composition influenced by this? A number of journal articles appeared on the topic of music and phrenology, bolstered by the establishment of the London Phrenological Society (1823), and its sister organization, the British Phrenological Association (1838). They placed the creative imagination, music, and the “natural” life of the mind into a fraught discourse around music and materialism. The cost of a material mind was a perceived loss of contact with the “gifts of naturer … the dynamical nature of man … the mystic depths of man's soul” (Carlyle), but the concept of machine was also invested with magical potential to transform matter, to generate energy, and can be understood as a new ideal type of mechanism. These confliciting ideals and anxieties over mechanism, as paradigm and rallying cry, are here situated in the context of music pedagogy during the second quarter of the century, with particular reference to amateur musicians and the popular appeal of phrenological “exercise,” and of devices such as Johann Bernhard Logier's “chiroplast.”

scholarly journals A Scorecard to Detect Financial Leverage Profitability

2018 ◽  
Vol 13 (3) ◽  
pp. 244
Author(s):  
Laura Broccardo ◽  
Luisa Tibiletti ◽  
Pertti Vilpas
Keyword(s):  
Net Present Value ◽  
Economic Value ◽  
Weighted Average ◽  
Cost Of Debt ◽  
Corporate Management ◽  
External Financing ◽  
Present Value ◽  
Financial Decisions ◽  
Proposed Model ◽  
The Cost

This study investigates how balancing internal and external financing sources can create economic value. We set a financial scorecard, consisting of the Cost of Debt (COD), Return on Investment (ROI), and the Cost of Equity (COE). We show that COE should be a cap for COD and a floor for ROI in order to increase the Net Present Value at Weighted Average Cost of Capital and the Adjusted Present Value of the levered investment. However, leverage should be carefully monitored if COD and ROI go off the grid. Situations where leverage has the opposite effect on value creation and the Equity Internal Rate of Return are also discussed. Illustrative examples are given. The proposed model aims to help corporate management in financial decisions.

Barriers to business model innovation in the agri-food industry: A systematic literature review

2018 ◽  
Vol 47 (4) ◽  
pp. 308-314 ◽  
Author(s):  
Pia Ulvenblad ◽  
Henrik Barth ◽  
Jennie Cederholm* Björklund ◽  
Maya Hoveskog ◽  
Per-Ola Ulvenblad ◽  
...  
Keyword(s):  
Literature Review ◽  
Business Model ◽  
Systematic Literature Review ◽  
Food Industry ◽  
Business Model Innovation ◽  
Mind Set ◽  
Main Barrier ◽  
The Mind

The importance of business model innovation (BMI) is widely recognized. BMI is especially important in the agri-food industry that faces enormous challenges as the demand for food increases worldwide. Much of the BMI research focuses on the technology and biomedical industries. Far less attention has been paid to the agri-food industry. This article is a systematic literature review of the BMI research in the agri-food industry. The article’s aim is to identify and categorize various barriers to BMI as described in the literature (in English) published in peer-reviewed journals between 1990 and 2014. The findings show a fairly even distribution among external and internal BMI barriers. Because the main barrier is the mind-set that is resistant to change, it is recommended the researchers and practitioners should focus more on the cognitive barriers to BMI in the agri-food industry.

scholarly journals Studi Kelayakan Ekonomis Rencana Pembangunan Pelabuhan Sungai Liong Desa Berancah Kabupaten Bengkalis

2019 ◽  
Vol 3 (2) ◽  
pp. 146
Author(s):  
Nur Rahmani ◽  
Akmal Lazuardy
Keyword(s):  
Net Present Value ◽  
Payback Period ◽  
Economic Feasibility ◽  
Rate Of Return ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Benefit Analysis ◽  
Present Value ◽  
The Government ◽  
The Cost

The fish shelter port (TPI) is a need that needs to be prepared by local village officials and the government for every coastal village in Bengkalis Regency. This research was conducted in the Berancah village of Bantan District. The analysis in this study describes the economic feasibility mathematically for the construction of a fish storage port (TPI) by calculating the cost ratio (B / C ratio) benefit analysis, payback period (PP), net present value (NPV), and internal rate of return ( IRR). The results obtained from the NPV value (3,661,267,645), BCR value (0.943), IRR value of 10.01%, and PP are in the period of 30 years. Taken as a whole by standardizing the calculations, it can be concluded that the planned construction of a fish shelter in Berancah village is considered not economically feasible, but economic analysis is not merely a benchmark for feasibility, reviewed for the future many benefits will be received by the community around the location of the development plan so that it can improve the welfare of the community in Berancah village.

scholarly journals Analisis Kelayakan Ekonomi Mesin Pencacah Rumput Gajah Tipe Reel

Agrikultura ◽  
2018 ◽  
Vol 29 (3) ◽  
pp. 144
Author(s):  
Wahyu K Sugandi ◽  
Asep Yusuf
Keyword(s):  
Net Present Value ◽  
Payback Period ◽  
Economic Feasibility ◽  
Cost Ratio ◽  
Elephant Grass ◽  
Period Analysis ◽  
Benefit Cost Ratio ◽  
Cutting Machine ◽  
The Cost ◽  
Benefit Cost

ABSTRACTEconomic analysis reel type cutting machine for elephant grassThe need grass for fodder in the region Lembang has been increasing, but it does not followed byits quality. Therefore, cutting machine which is able to cut the fodder no more than 5 cm size is needed. The Laboratory of Agricultural Machinery and Machinery Department of Agricultural Engineering and Biosystem FTIP Unpad had been developed an elephant grass enchant machine inaccordance with the requirements of making the silage, but no economic feasibility analysis has been done for the machine. Therefore it was necessary to study the economic feasibility analysis of elephant grass cutting machine. The method used in this study was the economic analysis methodwhich includes the cost of production and the breakeven point, and business feasibility including net present value (NPV), benefit cost ratio analysis (BCR), internal rate of return (IRR) and payback period analysis (PBP). The results showed that the cost of production of elephant grass enemies was Rp 2,178 / kg with production breakeven 18.769 kg, BC ratio of 1.15, NPV1 of Rp 70,770, - NPV2 of Rp 61.333, - IRR of 27% and payback period during 2 months. So it can be concluded that the use of elephant-type elephant chopper machine was feasible to use.Keywords: Elephant grass, economic analysis, cutting machineABSTRAKKebutuhan rumput gajah untuk pakan ternak (silase) di daerah Lembang terus meningkat. Syarat pembuatan silase tersebut bahwa panjang potongan rumput gajah sebaiknya < 5 cm. Untuk itudiperlukan sebuah mesin pencacah rumput gajah sesuai syarat pembuatan silase. LaboratoriumAlat dan Mesin Pertanian Departemen Teknik Pertanian dan Biosistem FTIP Unpad telah mengembangkan sebuah mesin pencacah rumput gajah sesuai syarat pembuatan silase tersebut, tetapi belum dilakukan analisis kelayakan ekonomi untuk mesin tersebut. Oleh karena itdiperlukan suatu penelitian berkenaan dengan analisis kelayakan ekonomi mesin pencacah rumput gajah. Metode yang digunakan pada penelitian ini adalah metode analisis ekonomi yang meliputi biaya pokok produksi dan titik impas, serta kelayakan usaha yang meliputi net present value(NPV), benefit cost ratio analysis (BCR), internal rate of return (IRR) dan payback period analysis(PBP). Hasil penelitian menunjukkan bahwa biaya pokok produksi mesin pencacah rumput gajah adalah Rp 2.178/kg dengan titik impas produksi 18.769 kg, BC rasio sebesar 1,15, NPV1 sebesar Rp 70.770,- NPV2 = Rp 61.333,- IRR sebesar 27% dan payback period selama 2 bulan. Maka dapat disimpulkan bahwa pengunaan mesin pencacah rumput gajah tipe reel layak digunakan. Kata Kunci : Rumput Gajah, Analisis Ekonomi, Mesin Pencacah

scholarly journals A novel economic-filter for evaluating sub-Saharan diamondiferous kimberlites

2020 ◽  
Vol 120 (9) ◽  
Author(s):  
P. Leach ◽  
B.P. von der Heyden ◽  
P. Ravenscroft
Keyword(s):  
Net Present Value ◽  
Early Stage ◽  
Economic Status ◽  
Economic Viability ◽  
Preliminary Evaluation ◽  
Cost Models ◽  
Sub Saharan ◽  
Filter Approach ◽  
Geological Complexity ◽  
The Cost

SYNOPSIS Because of their high degree of geological complexity, kimberlite-hosted diamond deposits are exceedingly difficult to evaluate for economic viability. Accordingly, standard mineral asset evaluation protocols (e.g., the Cost-, Market-, and Income Approaches defined in the SAMREC Code) may not hold sufficient predictive abilities for these deposit types, especially at the early stages of exploration. Here we present a novel tool, a cost filter approach towards preliminary evaluation of economic viability of southern African kimberlite-hosted diamond deposits, using the AK6 and BK11 diamond deposits from the Orapa diamond field as case studies. The development of this cost filter is underpinned by elements of both the Market Approach (i.e., comparisons to similar deposits) and the Income Approach (i.e., use of net present value (NPV) calculations) for mineral asset evaluation. Importantly, the cost filter is constrained through modification of only two primary variables (the average diamond value and the diamond grade) and thus differs significantly from other cost filters that rely on estimation and assumptions for every parameter input into an NPV calculation. The cost filter correctly predicts the sub-economic status of the BK11 diamond pipe, and is thus presented as a useful geo-economic tool for early stage kimberlite evaluation within the local southern African context. The approach and its theoretical underpinning foreseeably hold vast potential for use in the economic evaluation of other ore commodities, particularly where socio-economic and political risk factors can be negated by employing a geographic constraint. Keywords: diamond, economic viability, kimberlites, southern Africa, cost models filter.

Sign in / Sign up

Export Citation Format

Share Document