No abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to create a cost model at the general equipment level for industrial maintenance services. Design/methodology/approach -The study is divided into two main sections. In the first phase the idea is to create a framework for a cost model with a literature review. The second, empirical part of the study is based on costing information from interviews and information given by network companies: a pulp mill, a maintenance company and an equipment provider. The maintenance of three different equipment processes is examined in the network through a case study, to get more specific information from real world situations to develop the model. Findings -The findings concern the cost items that should be considered in the model, the structure of the model, and how the general cost model is constructed. During the research the model has been extended, and new cost categories included. Practical implications -The cost model can be used in various performance measurement and decision-making situations, such as maintenance service pricing, contract negotiations, outsourcing decisions, and life cycle cost management. Originality/value -The cost model differs from traditional cost models. Earlier models have focused on the perspective of either the service provider or the customer, but not on both perspectives at the same time. However, in order to achieve a win-win situation in a business network, open books practice is expected from each member of the network.

Servitization and rapid technological development have made data-based services a feasible way for many manufacturing companies to increase their cash flow and support their core products. In this paper, an analytical model is presented for studying the development costs and pricing of new Internet of Things -based services for especially populations, or fleets, of industrial production equipment and machines. The model suggests the optimal price of a fleet service as a function of the life cycle of the service, the required rate of return, the size of the fleet, and the extent of economies of scale in fleet research and development. The paper contributes to the research on servitization of manufacturing, and sheds light on the different natures of service and equipment sales. Also a numerical study is presented to bring forward the managerial implications of the model.

Outsourcing of maintenance operations has created new kind of decision-making situations. These situations require above all increased cost-awareness. Our industrial research partners have noticed in several occasions that there is a need for a common network-level tool which would enable the planning of maintenance operations. Most planning is even today made by each partner's own simple calculations or is based on the empirical knowledge of maintenance experts. Cooperation between the customer and the service provider is still rather uncommon. This article presents a life-cycle model that helps in planning maintenance operations better than previous models. Most models are very case-specific, suitable only for the item or the purpose of use in question. In many cases the models are quite theoretical and include complicated mathematical solutions, requiring special skills from the user. Usually the models have also been constructed for the needs of asingle company without a network perspective. Our general item level life-cycle model takes into account the point of view of all maintenance network members, it makes planning the future scenarios of maintenance operations together possible, and it provides a practical tool for daily use to reach cost and time savings in the whole network.

In recent decades, energy-efficiency improvements and aging dwelling stocks have grown the renovation need in many countries. This research compares the profitability of building renovation companies and companies specialising in new construction using financial statement analysis and analysis of variance. Profitability is assessed through EBITDA and return on assets (ROA). Debt to equity (D/E) ratio as solvency measure supports the analysis. The findings show micro and small companies in the new building sector have a statistically significant advantage in EBITDA over renovation in same size groups; projects in the renovation sector appear to be more complex, especially in terms of design, causing cost overruns. The more cyclical nature of new construction, however, equalises EBITDA differences over time. Medium-size companies overall had the lowest EBITDA following the 2008-2009 financial crisis. ROA were generally higher for renovation sector highlighting the more capital-intensive nature of new construction; unsold apartments and land for future projects hold capital, which results in higher D/E ratios. D/E ratios also revealed that both sectors have faced the COVID-19 pandemic less indebted compared to the 2008-2009 financial crisis. Since both sectors' profitability has been decreasing during the research period (2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019), actions are needed especially in the renovation sector, which has an increasingly important role in developed societies.