Industrial Engineering and Management Systems

  • 제14권2호
  • /
  • Pages.122-128
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  • 2015
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  • 1598-7248(pISSN)
  • /
  • 2234-6473(eISSN)
대한산업공학회 (Korean Institute of Industrial Engineers)
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Method and Procedure for Economic Evaluation of Improvement Activities

  • Kono, Hirokazu (Graduate School of Business Administration, Keio University) ;
  • Ichikizaki, Osamu (Graduate School of Business Administration, Keio University)
  • 투고 : 2015.02.02
  • 심사 : 2015.06.05
  • 발행 : 2015.06.30
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초록

The purpose of this paper is to propose an appropriate evaluation scheme for improvement activities, based on a simple model comprising cash inflow by sales as well as variable and fixed cost expenditures. The paper distinguishes capacity surplus and capacity shortage situations, and examines economic benefits gained by yield increase improvement and capacity increase. The paper then proposes a basic rule of thumb for economic evaluation of improvement activities. The logic is simple but useful in practice, being conducive towards improvement activities under current economic conditions with uncertainties.

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참고문헌

  1. Kono, H. (2003), A Method for Evaluating Investment Alternatives on the Total-Cost Unit-Cost Domain, Proceedings for the Autumn Conference of the Japan Industrial Management Association, Osaka, 124-125.
  2. Kono, H. and Mizumachi, T. (2004), Economic Evaluation for Multiple Investment Alternatives under Uncertainty, Proceedings of the 5th Annual Conference of Asia-Pacific Industrial Engineering and Management Systems, Gold Coast, Australia, 8.3.1-8.3.10.
  3. Kono, H. and Mizumachi, T. (2009), Profit Sensitivity Analysis under Uncertainty for Cases of Production Capacity Surplus and Shortage, Journal of Japan Industrial Management Association, 59(6), 464-476.
  4. Kono, H. (2010), Economic Risk Analysis for Investment Alternatives Considering Yield and Capacity over Multiple Periods, Journal of Japan Industrial Management Association, 60(6E).
  5. Nakamura, Z. (1985), Economic Evaluation on the Variable-Cost Fixed-Cost Domain, Proceedings for the Spring Conference of the Japan Industrial Management Association, Tokyo, 209-210.
  6. Nakamura, Z. (2002), Safety Indices of Profit under Uncertainties, Proceedings for the Autumn Conference of the Japan Industrial Management Association, Fukuoka, 54-55.
  7. Senju, S. and Fushimi, T. (1982), Fundamentals of Engineering Economy, Japan Management Association Press, Tokyo.
  8. Senju, S., Fujita S., Fushimi T., Yamaguchi T. (1986), Engineering Economic Analysis, Nihon Kikaku Kyokai, Tokyo.
  9. Senju, S., Nakamura, Z. and Niwa, A. (1994) Exercises of Engineering Economy, Japan Management Association Press, Tokyo.

피인용 문헌

  1. Profitability and Risk Analysis for Investment Alternatives on C-R Domain vol.16, pp.4, 2015, https://doi.org/10.7232/iems.2017.16.4.647