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1 – 10 of over 61000The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is…
Abstract
The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.
Marc Wouters and Susana Morales
To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle…
Abstract
Purpose
To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.
Methodology/approach
The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.
Findings
The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.
Research Limitations/Implications
The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.
Originality/value
The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.
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John R. Selman and Rich Schneider
The US National Park Service (NPS) is responsible for the management of some of the most recognisable and notable natural and cultural resources in the USA. To make the case for…
Abstract
The US National Park Service (NPS) is responsible for the management of some of the most recognisable and notable natural and cultural resources in the USA. To make the case for additional maintenance funding, NPS is instituting life‐cycle cost management practices. Over the 50‐year life cycle of the Redwood Information Center at Redwood National and State Parks in Crescent City, California, custodial costs alone will sum to more than the total replacement construction cost for the entire facility. This point illustrates an important aspect regarding the true cost of operating and sustaining physical infrastructure over its life cycle. It also suggests that understanding life‐cycle costs is a critical element of effective, long‐term portfolio and asset management. Often, institutional owners of physical assets inadequately assess the true cost of building and owning facilities, typically overemphasising initial construction costs. Life‐cycle operations and maintenance (O&M) and capital renewal costs, however, almost always comprise a far greater percentage of total life‐cycle building costs. Using actual life‐cycle costs for an asset that is owned and managed by NPS, this paper explores the development of full life‐cycle costing, highlighting key life‐cycle cost drivers, of an information centre at the Redwood National and State Parks.
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Seyedhabibollah Sadrinooshabadi, Afshin Taheri, Ibrahim Yitmen and Rogier Jongeling
Each building project demands an integrated method for information and requirement management in its life cycle. The main purpose of this paper is to explore the major obstacles…
Abstract
Purpose
Each building project demands an integrated method for information and requirement management in its life cycle. The main purpose of this paper is to explore the major obstacles in integrated life cycle information management and recognize the potentials of CoClass as the new Swedish digital classification system to tackle them throughout asset life cycle.
Design/methodology/approach
The industry viewpoint toward the current status of asset information management considering ISO 19650-1 principles and the existing obstacles and the industry practitioners' ideas regarding CoClass capabilities and applicability were captured and analyzed. A total of 13 semistructured interviews were conducted with the AECO industry professionals to have an understanding of information requirement management. Then the results were analyzed qualitatively, using the NVivo 12 software. Different attributes of a component (heating panel) in a meeting room according to CoClass and data deviations throughout the asset life cycle were elaborated.
Findings
This study reveals some obstacles in information management process in seven categories in relation to: (1) the need to employ information exchange platforms as common data environments (CDEs) by all actors from early stages; (2) the communication issues caused by lack of utilizing common languages; (3) the costly and time-consuming implementation process; (4) the misunderstandings in terms of data communication between service providers and owners; (5) the definition and fulfillment of information requirements as well as keeping track of data deviations throughout asset life cycle; (6) the information update difficulty; and (7) the need for training practitioners dealing with new systems such as CoClass.
Originality/value
The research explores the major obstacles in information requirement management concerning the practical implementation of the new Swedish classification system, CoClass, supporting the asset life cycle.
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ALI JAAFARI and KITSANA MANIVONG
The focus of this paper is on life‐cycle objective‐based project management systems in general, and SPMIS in particular. SPMIS (short for Smart Project Management Information…
Abstract
The focus of this paper is on life‐cycle objective‐based project management systems in general, and SPMIS in particular. SPMIS (short for Smart Project Management Information System), has been designed: (a) to facilitate the employment of life‐cycle objective‐based project management approaches; and (b) to support concurrent engineering and construction, thus promoting greater integration of the processes under which projects are proposed and implemented. In order to validate the functions designed for SPMIS the authors undertook a detailed case study of a large capital project. The actual project management functions employed by the project team on the case project were researched and charted using the best current PM practices as the guide. While this field research shed light on the actual needs and requirements, the design of the SPMIS functions was approached from first principles in order to incorporate the basic shift from the traditional objectives of cost, time, and quality to life‐cycle objective functions, such as return on investment, facility operability, and life‐cycle integration. This paper describes the fundamental philosophy and framework for the development of life‐cycle objective function‐based project management systems in general, and contrasts these with the existing PM methods.
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The purpose of this paper is to investigate how the organization’s life-cycle stages influence the venture capital investor’s decision. The present study also aims to explore the…
Abstract
Purpose
The purpose of this paper is to investigate how the organization’s life-cycle stages influence the venture capital investor’s decision. The present study also aims to explore the relationships between life cycle stages and financing decisions of investors of an organization.
Design/methodology/approach
The research focuses on a qualitative approach and adopts descriptive and case study methods to perceive the data collected. By the multi-case research approach, the authors conducted interviews in analytics and technological companies. The data originates from semi-structured interviews and publicly available data with various venture capital firms.
Findings
In this research, 10 stages of the organization’s life cycle from the Adizes theory have been considered. It starts from the first two stages as courtship and infancy to bureaucracy and death to the final stages. The results and findings indicate that life cycle stages influence venture capitalist financing decisions.
Research limitations/implications
The implications of the current research help venture capitalist to take investment decisions according to the life cycle stage of the organization. Furthermore, according to the stage of the organization, the owner of a venture capital firm can approach various venture capitalists for the betterment of the organization.
Originality/value
The novelty of this research is to consider a case-based approach involving Adizes’ life cycle in all 10 stages of venture capital firms that affect venture capitalists.
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This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and provides 667…
Abstract
This article surveys the literature dealing with theory and applications of life cycle costing (LCC). It deals with the literature published in the last 25 years and provides 667 references.
Defines life cycle costing, which gives rise to Life Cycle Cost(LCC). Defines LCC as “The total cost of the system or productunder study over its complete life cycle or the…
Abstract
Defines life cycle costing, which gives rise to Life Cycle Cost (LCC). Defines LCC as “The total cost of the system or product under study over its complete life cycle or the duration of the period of study, whichever is the shorter”. Stresses that LCC can be used at whatever level is chosen (estate or, say, a boiler). Explains the timing and mechanism of measurement. Argues that the application of LCC at an early design stage will greatly enhance system design and operation. Offers other pertinent definitions.
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Anni Lindholm and Petri Suomala
The purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long‐term cost…
Abstract
Purpose
The purpose of this paper is to discuss life cycle cost management and highlight the practical challenges related to collecting adequate data and practicing long‐term cost management in an uncertain environment.
Design/methodology/approach
The paper reports a case study conducted in the Finnish Defence Forces. As part of the case study, a life cycle cost model for a case product was developed.
Findings
Activity‐based life cycle cost modeling can provide relevant information for varying product management needs at different stages in the life of a product. Quantification of uncertainty is one of the elements in the modeling that can improve the feasibility of LCC both for cost estimation and tracking purposes.
Originality/value
Only a few empirical studies on life cycle costing have been reported which focus on the defence sector. The paper contributes to our understanding of how LCC can be used in a continuous manner and depicts how LCC can produce a sharpened cost image of a particular product.
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