scholarly journals Understanding the costs of urban sanitation: towards a standard costing model

2020 ◽  
Vol 10 (4) ◽  
pp. 642-658 ◽  
Author(s):  
Tristano Sainati ◽  
Fiona Zakaria ◽  
Giorgio Locatelli ◽  
P. Andrew Sleigh ◽  
Barbara Evans

Abstract There is a dearth of reliable cost data for urban sanitation. In the absence of high-quality global data, the full cost of sustainable implementation of urban sanitation remains uncertain. This paper proposes an approach for developing bespoke parametric cost estimation models for easy and reliable estimation of the costs of alternative sanitation technologies in a range of geographical contexts. A key requirement for the development of these models is the establishment of a large database of empirical information on the current costs of sanitation systems. Such a database does not currently exist. Two foundational tools are proposed. Firstly, a standard metric for reporting the costs of urban sanitation systems, total annualised cost per household. Secondly, a standardised approach to the collection of empirical cost data, the Novel Ball-Park Reporting Approach (NBPRA). Data from the NBPRA are presented for 87 individual sanitation components from 25 cities in 10 countries. Broad cost ranges for different archetypal systems have been estimated; these currently have high levels of uncertainty. Further work is proposed to collect additional data, build up the global database, and develop parametric cost estimation models with higher reliability.

2021 ◽  
Author(s):  
◽  
Prianca Naicker

Optimal costing decisions are required in order to ensure that organisations are globally competitive. The case study company is a global affiliate based in Durban, KwaZulu-Natal, South Africa and is involved in the manufacture and assembly of automobiles and automotive components. It was noticed that cost estimation models were only introduced at an advanced stage in the project life cycle. The concept of cost estimation and its application to improve various factors of a business has been investigated previously and existing evidence could be utilised to support further study in the field. Therefore, the aim of the study was to improve the quality of sourcing decisions by means of the introduction of a parametric cost estimation model and business process re-engineering. A case study approach was adopted. The first objective was to develop an overview of the current sourcing processes and understand the factors which influenced sourcing decisions. The methods used included the generation of a Standard Operating Procedure (SOP) for the current sourcing process, an online survey and interviews. It was concluded that there was a need to develop a detailed SOP which identified and included all impacted departments. The second objective was to redesign the sourcing process. It was concluded that the current sourcing processes did not take cost estimates into account at the early stages of the project life cycle and the inability to accurately predict costs consequently negatively impacted the cost competitiveness of the organisation. The third objective was to develop and implement a parametric cost estimation model. The model was created using Microsoft Excel. The results revealed that the Parametric Cost Estimation Model (PCEM) needed to focus on small injection moulded components as they were the highest contributor to the high Cost Index Manufacturing (CIM), which made the organisation globally uncompetitive. The results revealed that with the introduction of the PCEM and the revised sourcing process, the selected component was competitively priced.Recommendations were made for continuous process improvement and a roadmap for the further introduction of cost estimation models. Further research could also be conducted to develop an optimal cost estimation model based on analogous costing techniques or to develop a comprehensive database for other complex commodities.


2013 ◽  
Vol 55 (8) ◽  
pp. 1496-1511 ◽  
Author(s):  
Ye Yang ◽  
Zhimin He ◽  
Ke Mao ◽  
Qi Li ◽  
Vu Nguyen ◽  
...  

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