Integrated value engineering: Consideration of total cost of ownership for better concept decision

Maisenbacher, Sebastian; Klöppel, Markus; Laubmann, Jonas; Behncke, Florian G. H.; Mörtl, Markus

doi:10.1109/picmet.2016.7806729

Cited by 4 publications

(4 citation statements)

References 17 publications

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“…Maisenbacher et al (2015) introduced the term integrated VE to the VM knowledge domain and it has become a new initiative. Integrated VE facilitates matrices to combine the two concepts of target costing and VE in a structural model to deduce value optimisation potentials (Sadi et al , 2015; Behncke et al , 2014; Maisenbacher, Klöppel, Laubmann, Behncke and Mörtl, 2016). Therefore, the new method targets value optimisation by a combination of either increasing the functionality of the customer or reducing the product’s costs (Maisenbacher, Fürtbauer, Behncke and Lindemann, 2016).…”

Section: Resultsmentioning

confidence: 99%

Mapping the knowledge domains of value management: a bibliometric approach

Ekanayake

Shen

Kumaraswamy

2019

ECAM

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Purpose The purpose of this paper is to review the state-of-the-art of literature of value management (VM) and to map the VM domain to provide a launch pad for further knowledge development and dissemination. Design/methodology/approach This study employed CiteSpace bibliometric analysis software to systematically, comprehensively and accurately review the VM-related literature and to map the VM knowledge domain. Findings The results reveal the current VM knowledge base, clusters, research hotspot, and the evolutionary trajectory while contributing to the development of VM knowledge by providing a dynamic platform for integrating future developments in research. Originality/value The contribution of this paper to scientific VM knowledge is, therefore, a quantitative and accurate VM knowledge map based on a bibliometric analysis of data from the VM knowledge base, domains and evolution. The findings can be generalised and used as an effective knowledge mapping tool in a specific field of study that could complement and add significant value to the often adopted more traditional literature reviews. This study further recommends that the proposed knowledge map be frequently updated by similar future studies to fill gaps that arise with changing needs, priorities and contexts, as well as to identify corresponding future demands in the VM research domain.

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Section: Resultsmentioning

confidence: 99%

Mapping the knowledge domains of value management: a bibliometric approach

Ekanayake

Shen

Kumaraswamy

2019

ECAM

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“…According to Maisenbacher et al [18], these methodologies have proven to be highly reliable, enabling an accurate and comprehensive evaluation of all capital and operation costs of different types of investments in production systems. As a result, a range of models have been proposed to estimate life-cycle costs in complex industrial facilities.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

et al. 2023

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In capital-intensive organizations, decisions regarding capital costs play an important role due to the significant amount of investment required and the expected return on investment. Spare parts management is crucial to those ends, as spare parts management can constitute a significant portion of OPEX. Companies must implement a trade-off analysis between stock levels and assets’ availability. Decision-making supports mechanisms such as the Level of Repair Analysis (LORA), Integrated Logistics Systems (ILS), and life-cycle costing (LCC) models have been developed to aid in equipment selection, implementation, and decommissioning. Nowadays, these mechanisms appear to be integrated with risk-management models and standards. This paper proposes a long-term costing model that integrates a capacity analysis, reliability functions, and risk considerations for the cost management of logistics activities, particularly in MRO structures. The model is built upon Time-Driven Activity-Based Costing (TD-ABC) and incorporates the volume of activities generated by MRO needs. It also addresses uncertainty through the integration of a cost-at-risk model. By integrating spare parts, activity-based cost models, and risk measurement through Monte Carlo simulation, this study offers powerful insights into optimizing spare parts logistics activities. The proposed model is a novel approach to include the risk of cost in spare parts management, and its matrix-activity-based structure makes possible the development of sophisticated mathematical models for costing and optimization purposes in different domains.

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“…Therefore, future spare parts' demand at the warehouse could be modelled using this distribution. As commented above, (λ(t)), can be estimated using Equation (5). Basically, the Weibull-based model allows the estimation of the failure rates and corresponding spare parts' demand.…”

Section: Weibull-based Reliability Equationsmentioning

confidence: 99%

“…According to [5], Total Costs of Ownership (TCO) and LCC are models that allow a more accurate and complete assessment of all costs that are related to investment decisions or purchasing activities. Furthermore, two highly-cited works [6,7] included reliability factors in an attempt to improve the accuracy of such models.…”

Section: Introductionmentioning

confidence: 99%

Spare Parts Cost Management for Long-Term Economic Sustainability: Using Fuzzy Activity Based LCC

2019

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The concept of life cycle sustainability assessment provides an interdisciplinary space to discuss the main challenges in addressing sustainability from a long-term perspective. However, uncertainty related to cost parameters constitutes one of the main challenges in LCC. This uncertainty prevents managers from precisely anticipating the exact values of important variables. These variables include the costs of spare parts inventories, which in some cases can constitute high percentages of the total cost of a product or service. We propose an activity-based costing model that handles uncertainty using triangular numbers, along with a matrix representation, and Weibull functions to incorporate the projected equipment reliability into the model. A case study based on a spare parts distribution center, which serves the mining industry in Northern Chile, is presented. The results obtained are compared with a traditional costing method. The advantage of using the proposed approach over the traditional one is evident. Future research is directed towards the implementation of a larger number of inventory policies, along with experimentation with other types of fuzzy numbers.

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Integrated value engineering: Consideration of total cost of ownership for better concept decision

Cited by 4 publications

References 17 publications

Mapping the knowledge domains of value management: a bibliometric approach

Mapping the knowledge domains of value management: a bibliometric approach

Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

Spare Parts Cost Management for Long-Term Economic Sustainability: Using Fuzzy Activity Based LCC

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