Complementary Investment in Change Management and IT Investment Payoff

Measuring information technology payoff continues to be a challenge for organizations. Considering the impact of complementary investments on IT payoff has been proposed by recent studies. This paper examines the impact of one type of complementary investment on IT payoff: organizational change management initiatives to support IT implementation. The paper reports a case study of Cisco Systems' IT investment in an operating systems upgrade of over 34,000 computer systems in 117 countries. The findings of the exploratory case study indicate that planned communications and change management strategies developed by their Organizational Change Management group led to the smooth implementation of the upgrade process and contributed to the payoff from the IT investment, measured in terms of client satisfaction with the process and system and reduced cost and time to upgrade all systems. The findings were supported by pre- and post-implementation surveys of clients, analysis of the change management initiatives and their impact on the process, and comparison of actual and budgeted costs for the project.     

Computer applications in petroleum reservoir research

The computer is an essential tool utilized by the research engineer in petroleum reservoir evaluations. The magnitude and technical difficulty of the work usually precludes any other study technique. The typical reservoir study is aimed at determining the optimally economic primary development plan for a newly discovered field, or the feasibility of a variety of enhanced recovery techniques for a nearly-depleted field.The reservoir study begins by defining the problem, identifying the desired output, and choosing the appropriate approach for the degree of detail needed. The computer is utilized to retrieve, reduce and statistically analyze the geological data, and production history from the company-wide data bank. The properties of the oil are determined through a non-linear curve fit, matching the theoretical test results of the computer modeled oil with lab test results. The resulting data is used to model the specific reservoir with a complex simulator. Physical parameters of the simulated reservoir are varied to match historical production, if any, validating the computer model.When the engineer is satisfied the computer simulator adequately describes the performance of the reservoir, alternate development plans can be forecasted and compared. This information provides a basis for the economic analysis that determines the best plan of action. The computer time required for such a study typically costs thousands of dollars. However, the cost of drilling a 5000 ft well can exceed $100,000 and deeper wells have run over $1 million, so an initial investment in computer and man time can make a tremendous difference in final development costs and receipts.     

The utilization of stand-alone microprocessor units to control energy intensive systems

Most energy intensive process control systems utilize an oversize dedicated computer system. The utilization of stand-alone microprocessor units to control energy intensive systems, reduces costs, facilitates rapid troubleshooting and provides a means to initially inexpensively monitor the operations of these systems to provide control design data. A manufacturing company inquired as to the possibility of reducing their operational costs utilizing computers. This resulted in the design of a multiple, stand-alone and modular Z8 microcomputer configuration to control their steam and compressed air production.     

The use of minicomputers in structural analysis

Currently available small computer systems and their potential use in the design and analysis of structures are summarized. The use of expensive main-frame computers in structural analysis is being challenged by the availability of inexpensive minicomputers and microprocessors. However, the use of this new equipment has not been fully exploited due to the lack of software which must be tailored for small computers.The development of interactive, computer assisted, structural design has not progressed significantly in the past due to expensive computer hardware or remote time-sharing costs. The availability of powerful inexpensive computer systems within small design firms will allow the design engineer to gradually integrate interactive computer assisted design into the design process without a major investment in computer hardware.The total cost of a small computer with extended BASIC and FORTRAN IV languages is less than $10,000. In addition to the ability to perform engineering computations the same computer system can be used for administration functions such as accounting, inventory, cost estimates and word processing associated with the writing of specifications and engineering reports. The total cost of a small microcomputer may be completely justified by its use as a high or low speed remote terminal to a larger computer.     

Distributed Data Acquisition and Control by Software Bus

Increasing global competition forces manufacturers of products fi‘om all technical fields to guarantee a high product quality for a long period of time. At the same time it is necessary to minimize production costs. In order to meet all these requirements, on-line data acquisition and processing ate of increasing importance in distributed automation systems. A software bus operating on industrial Ethemet has an ability to minimize operating costs by offering easy installation, scalability, high degree of reliability and remote monitoring and control.     

A refined cost-based approach to assembly scheduling

Increased emphasis on control of work-in-process costs in assembly scheduling of large, complex items leads to increased needs for aids to foremen in dealing with schedule changes. The task is complicated by constraints on resources that often require that activities are begun earlier than a just-in-time schedule would otherwise dictate. A criterion used in prototype tandem knowledge-based decision-aiding systems in the past was based on the assumption that investment costs do not compound. This can provide misleading choices in some cases. The present work refines the criterion previously used by including the compounding costs of holding subassemblies in inventory. A simplified version of the new formula is developed which provides simple rules for deciding which activities to start early if necessary. Numerical comparisons are made between the criteria.     

Economic design of process parameter control limits and process adjustment intervals for continuous production processes

In this paper, the concept of controlling the process parameters which is referred to as on-line feedback quality control is implemented for continuous production processes. The optimal process parameter control limits and process adjustment intervals which minimize the total quality cost of production are obtained. The quality costs considered are the diagnosis cost, the adjustment cost, the measurement error cost and the cost due to deviation of product characteristics from their target values based on loss function. The relationships between process parameters and quality characteristics of the product can be either linear function or nonlinear function. Using the computer program written in BASIC, the optimal solution can be adjusted resulting in the economical solution for more practical industrial application.     

A decision support system for evaluating intangible investments

In this research project we have connected the procedural and substantive decision support by means of modern information technology. We have showed how the semistructured strategic decisions concerning intangible investments can be supported effectively by relating appropriate analysis methods to the different phases of the investment process. Because for the intangible investments there is no well-defined solution procedure available, a variety of methods must be integrated to support the solution process.

As a demonstrative example we showed how the intangible investments in logistic systems can be managed. It was highlighted that the logistics systems are complex, cross-functional systems that affect all major functions or departments within the firm beginning from the raw material deliveries and ending with the deliveries of finished goods. Investments in the logistics systems have corporatewide, cross-functional effects, and the investment decisions are strategic decisions. Consequently, the investments in the logistics systems should be strategically justified, not only cost-justified. The cross-functional effects imply that the investment analysis concerning the whole logistics system must be fulfilled under multiple, diversified criteria. We can not, however, ignore the financial, cost and revenue oriented, traditional investment criteria. They just have to be used in a new, flexible way in relation to the goals and objectives of the firm.

Strategic planning is a managerial area where semistructured problems frequently exist. One of the key problems faced in strategic management is the issue of investment decisions. Investments in information systems, logistic systems, flexible production systems, corporate image, etc, are examples of complex investment problems that are difficult to quantify and analyze with traditional techniques. Modern computer technology can enrich the analysis and improve the quality of strategic decision making.     

Management and control systems in the steel industry

Kimitsu Works, built during the period of Japan's rapid economic growth, was conceived and designed as a modern plant with emphasis on applying computers throughout its operation.Since the prototype of Kimitsu Integrated Information System (KIIS) was completed in 1970, KIIS has realized an integration of systems for processing information and data on steel plant operations from the receiving of orders to the shipping of products by assigning various functions of production control and operating control to a hierarchical structure of business computers, and process computers.After the oil crises, however, restructuring and modification of the existing systems became necessary to adopt to changes in the economy and plant-operating conditions, and to meet changes in manufacturing processes. Against such background, computer applications have been further expanded to fit the application of online systems to administrative areas in addition to the area of production control, and new computer systems have been developed to facilitate the control and analysis by staff departments.     

Methodologies for the cost-benefit analysis of computer graphics systems

This paper assesses the state of the art in cost-benefit analyses of computer graphics systems and suggests an approach for developing improved methodology. Cost-benefit analyses are distinguished from analyses of system performance in that the latter is directed at optimizing system performance at a given level of investment, while the former is directed at justifying the investment itself.Computer graphic system design alternatives are first outlined. Then methods of analyzing the performance and costs of computer systems in general and graphic systems in particular are discussed. With this information it is shown how cost-effectiveness analyses may be performed. The next crucial step is to conduct benefit analysis, an ill-defined art. The results of benefit analysis must be combined with cost-effectiveness analysis in order to perform the desired cost-benefit analysis.An experimental methodology is suggested for better performing benefit analyses of computer graphics systems. A more rigorous formulation of the cost-benefit procedure is then outlined. No attempt is made in this report to actually perform such an analysis.     

Improvement inconsistency of the metallic film thickness of computer connectors

The variation of the film thickness and associated increase in cost are vital problems to computer connector producers. However, no scientific adjustment method is currently available. Transfer function and engineering process control are proposed to adjust the production processes for improving the quality of the metallic film of the connectors and reducing the cost of production. The analyses of the confirmatory experiments from using the two proposed approaches show significant gains in quality improvement and cost reduction. Furthermore, the engineering process control approach reveals a better improvement over the transfer function approach. Thus this approach is recommended to improve the quality of the film thickness and reduce the production cost in the computer connector industry     

Computer control in the polymerization industry

Experiences in control of continuous and discontinuous polymerization processes did prove that process computers can successfully replace conventional control systems, yielding a better performance. It has also been shown that marked process improvements are possible by application of advanced control concepts such as multivariable control, adaptive control and dynamic optimization. Because of the complexity and size of new batch systems, computer control is widely accepted. Its ability to enforce on-off sequencing and continuous control on the batch process and its adaptation flexibility to all process needs ensures high production levels by minimizing labor cost and lost production on idle equipment.     

Hierarchical Decomposition of Production and Capacity Investment Decisions in Stochastic Manufacturing Systems

This paper is concerned with hierarchical decisions regarding production and investment in capacity in manufacturing systems with production subject to breakdown and repair. The production capacity can be increased by investing continuously in new capacity which is available upon completion. The decision variables are the rates of production and investment in capacity. The investment rate is assumed to have an upper bound. If, as assumed, the rates of breakdown and repair of production equipment are much larger than the rate of discounting of costs, the given problem can be approximated by a simpler problem in which the stochastic production capacity is replaced by the average capacity. Asymptotically optimal controls for the given problem are constructed from nearly optimal controls of the limiting problem. In addition, we analyse the behaviour of the solution as the investment rate is allowed to become arbitrarily large.     

A simulation‐based differential evolution algorithm for stochastic parallel machine scheduling with operational considerations

We consider a parallel machine scheduling problem with the objective of minimizing two types of costs: the cost related to production operations and the cost related to due date performances. The former could be reduced by reasonable settings of the operational variables (e.g., the number of workers, the frequency of maintenance), while the latter could be reduced by appropriate scheduling of the production process. However, the optimization of both targets is significantly complicated by the influence of human factors that play a dominant role in real‐world manufacturing systems. To cope with this issue, a simulation‐based optimization framework is adopted in this paper for obtaining high‐quality robust solutions to the integrated scheduling problem. Meanwhile, differential evolution, a metaheuristic algorithm based on swarm intelligence, is applied for a systematic search of the huge solution space. Finally, numerical computations are conducted to verify the effectiveness of the proposed approach. Sensitivity analysis and practical implications are also presented.     

Econometric analysis of the construction and operating costs of municipal solid waste incinerators

This multivariate statistical analysis is designed to isolate the effect of size from other variables that influence the underlying cost structure of municipal solid waste incinerators. Hence, the regression models for both construction and operating costs investigate several inherent factors, including design capacity, material and/or energy recovery, air pollution control, ownership, as well as actual and expected operating hours for different technologies. Several econometric model structures are evaluated systemmatically to find the most appropriate functional form for both construction costs and operating costs. The tested functional forms cover multiplicative single equation models, multiplicative recursive equation systems, just or over identified simultaneous systems, nonlinear seeming unrelated regression (SUR) systems. IML and ETS subroutines in SAS package have been applied for solving these models. Nonlinear SUR is selected as the representative model in this paper. The major estimation issues examined are heteroscedasticity, collinearity and the influence of outliers. But the scale economy, cost elasticity, and the interaction between construction and operating costs are also of significance economically. Based on nearly 150 observations, normalizations for different geographic regions and time are conducted and facilities are classified as mass burn waterwall, modular, refuse-derived-fuel (RDF), refractory incinerators and rotary combustors. The results show that it is important to model individual technologies separately to avoid exaggerating the importance of scale economy by overall observations.     

Mathematical programming approach to inventory control

In many production systems inventory cost is the major element of investment. It is essential in these systems to hold inventory at a near optimal level to minimize the total costs of the system. This paper presents a procedure for developing an optimal inventory control plan which can be solved by mathematical programming. Input to the model includes demand forecasts, ordering costs, carrying costs, shortage costs, price break data, space constraints, and probability of usage. Most of the factors affecting this plan are investigated in order to simplify the way of handling all the input values.     

Stability of digital control with computer interruptions

This note analyzes centralized digital control systems in which feedback loops are closed through a digital computer which generates the control law. Intermittent computer interruptions result in the deterioration of control quality and may even render the system unstable. A criterion that guarantees asymptotic stability under any admissible interruption pattern is presented in this note.     

邯钢冷轧厂精整线计算机过程监控系统的设计与实现

详细介绍了使用美国Rockwell公司PLC组成的一条横切生产线和一条亘卷生产线。该系统具有三层网络，上层为以太网实现各生产线间的数据交换；中间控制网负责PLC系统通信；底层设备网或远程I／O；计算机系统采用客户／服务器结构，为工艺过程优化，分析各种操作，预防各种事故的发生打下了良好的基础。该系统整体设计程序严谨、条理清晰，将分散于现场的检测单元，操作站和上位机有机的结合、协调控制，具有动态性好，跟随性强等特点。此系统提高了产品质量，降低了生产成本，增强了企业的竞争力。     

Data-based fault detection in chemical processes: Managing records with operator intervention and uncertain labels

Developing data-driven fault detection systems for chemical plants requires managing uncertain data labels and dynamic attributes due to operator-process interactions. Mislabeled data is a known problem in computer science that has received scarce attention from the process systems community. This work introduces and examines the effects of operator actions in records and labels, and the consequences in the development of detection models. Using a state space model, this work proposes an iterative relabeling scheme for retraining classifiers that continuously refines dynamic attributes and labels. Three case studies are presented: a reactor as a motivating example, flooding in a simulated de-Butanizer column, as a complex case, and foaming in an absorber as an industrial challenge. For the first case, detection accuracy is shown to increase by 14% while operating costs are reduced by 20%. Moreover, regarding the de-Butanizer column, the performance of the proposed strategy is shown to be 10% higher than the filtering strategy. Promising results are finally reported in regard of efficient strategies to deal with the presented problem.