Looking at newspapers nowadays, you are likely to see reports about public projects which turn out to be more expensive than estimated, sometimes even fourteen times the planned cost budget as in the case of the Sydney Opera. In order to gain a new insight on how this problematic could be improved, this paper aims to find correlations between the causes of deviations in public procurement and in the private market. Data from a on a global scale operating firm has been analyzed and compared to causes found in prior research. The questions this paper aims to answer are “Are causes and correlations found in smaller, private projects consistent with causes of cost overruns in public procurement?” and “Which implications and recommendations can be derived from the smaller dimension for the larger dimension of public procurement?”   After introducing the theoretical framework and its theories, the individual cost deviations and correlations of the different segments are introduced and analysed. As a result, one can see how the rational behaviour model and asymmetric information influence the estimated cost and that, in order to decrease the problematic of cost overruns, estimation techniques and especially the way contracts are constructed have to be improved. Furthermore, positive correlations between the size of cost deviations and number of employees, possible chain of events and pay offs between

I examine the influence of ownership structure on labor decisions by comparing how public and private banks manage their labor costs. I find that, compared to private banks, public banks grow their labor force by more when activity increases. However, due to capital market pressure, managers of public banks reduce labor costs to avoid reporting earnings declines while private banks increase labor costs around the same benchmark. In particular, I find that managers of public banks reduce labor costs to avoid reporting an earnings decline when they have diversified lines of business or when they do not make use of alternative methods of earnings management. Furthermore, public banks that reduce labor costs and report a small earnings increase experience improved subsequent performance. Overall these findings suggest that financial reporting pressure in public firms can constrain empire building by incentivizing managers to make strategic cost cuts.

ACE inhibitors have been widely used in the treatment of certain diseases of the cardiovascular system, the major use being hypertension, since all ACE inhibitors are prescribed for its treatment. ACE inhibitors is also used in the treatment of congestive heart failure. The angiotensin-converting enzyme (ACE) converts angiotensin 1 into angiotensin I1 and also stimulates the production of aldosterone (a hormone produced in the adrenal glands that influences salt and water retention by the kidneys, increasing blood volume and blood pressure). The cost benefit, cost-effectiveness and cost utility of ACE inhibitors have not been established. The objective of the study was to review and analyse the cost of ACE inhibitors by using a medical aid claims database. Data for the study population consisted of all prescriptions containing one or more ACE inhibitor combinations and were extracted from the central database of Interpharm datasystems for a period of one year, from 1 January 2001 to 31 December 2001. A total of 1 475 532 prescriptions containing a total of 2 953 244 ACE inhibitor items represented the study population. Through the analysis of the general medicine utilisation patterns that were obtained from the medicine claims database, it became evident that ACE inhibitor utilisation contributes considerably to the total prevalence and cost of all the medicine items available on the database. It constituted a total prevalence of 4,62% (n =1 475 532) of all the prescriptions and a total prevalence of 2,31% (n =2 953 244) for all the medicine items in the prescriptions with a cost of 3,65% (n =R379 91 1 472,OO). It was concluded that in the analysis of ACE inhibitors according to the innovator/generic classification, the majority of ACE inhibitors prescribed during the twelve-month period were for the innovator product, with a prevalence of 82,56% (n =68 162) and a cost of 89,11% (n =R13 863 080, 90). The utilisation of the generic ACE inhibitors, with a prevalence of 17,44% (n =68 162) and at a cost of 10,89% (n =R13 863 080, 90), was under-utilised. If the total number of prescriptions containing innovator ACE inhibitors could be generically substituted, (37,54%) R5 204 392,68 in cost expenditure could be saved over a twelve-month period. However, the fact that not all the innovator ACE inhibitors have generic equivalents available must be taken into account. If only the prescriptions containing ACE inhibitor items that have generic equivalents were to be substituted with their generic equivalents, R899 751.29(6.5%) would be saved. This was found by adding all the costs saved by substituting innovator drugs with their generics. Consequently, it can be concluded that the extensive use of the innovator ACE inhibitors could mean an exceptional increase in the cost expenditure associated with ACE inhibitor therapy. In completion of the study, recommendations were formulated as an aim to optimise the utilisation of ACE inhibitor generic equivalents. / Thesis (M. Pharm.)--North-West University, Potchefstroom Campus, 2004.

The objective of this thesis is to undertake a cost analysis of an HIV/AIDS prevention programme targeting vulnerable groups in Benin. The AIDS-3 project (Projet Sida 3), a project targeting Female Sex Workers (FSWs), which was implemented from 2001 to 2005, is used as a case study to see how costs vary with location, volume of activities, and HIV prevalence rate. Activities and delivery modes were documented, and cost data have been collected both retrospectively (data on previous “Projet Sida 3” costs already available) and prospectively, using an ingredients-based costing methodology to consider both the financial and economic costs. Output measures were compiled directly from the intervention, and are related to the efficient delivery of different components of the intervention. Average cost per output or per outcome was estimated and cost variation within and between health centres over time was assessed. Results reveal that only the volume of activity is a prominent factor that affects the average cost. The location of the project and the experience of the staff also affect costs as well, but their significance is low. Field work activities that are more efficient in urban areas than in rural communities appear to be paramount in the fight against HIV as far as costs are concerned. / HIV/AIDS Cost analysis

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The Natural Gas market in the U.S is growing rapidly with evidence that the nation has enough shale reserves to power the country for the next century. To ensure continued economic benefits through the use of this environmentally desired energy source, it becomes important to optimize the transportation network system design. Transportation through pipelines is one of the most common methods used to distribute Natural Gas from source to destination. This transportation system, consisting of pipelines, compressors and other supporting equipment, must be optimized, considering all relevant parameters to minimize cost and increase profit. The research presented here improves on the fuel cost minimization models in literature to incorporate pipeline elevation and safety requirements. A new model is proposed to consider the entire transportation network as a single system and optimize it considering all relevant parameters. The optimization model is setup as a mixed integer nonlinear program. The proposed model is used to optimize the pipeline network for a case study, evaluate the model as well as investigate design capacity and installed capacity of pipeline network.

ACE inhibitors have been widely used in the treatment of certain diseases of the cardiovascular system, the major use being hypertension, since all ACE inhibitors are prescribed for its treatment. ACE inhibitors is also used in the treatment of congestive heart failure. The angiotensin-converting enzyme (ACE) converts angiotensin 1 into angiotensin I1 and also stimulates the production of aldosterone (a hormone produced in the adrenal glands that influences salt and water retention by the kidneys, increasing blood volume and blood pressure). The cost benefit, cost-effectiveness and cost utility of ACE inhibitors have not been established. The objective of the study was to review and analyse the cost of ACE inhibitors by using a medical aid claims database. Data for the study population consisted of all prescriptions containing one or more ACE inhibitor combinations and were extracted from the central database of Interpharm datasystems for a period of one year, from 1 January 2001 to 31 December 2001. A total of 1 475 532 prescriptions containing a total of 2 953 244 ACE inhibitor items represented the study population. Through the analysis of the general medicine utilisation patterns that were obtained from the medicine claims database, it became evident that ACE inhibitor utilisation contributes considerably to the total prevalence and cost of all the medicine items available on the database. It constituted a total prevalence of 4,62% (n =1 475 532) of all the prescriptions and a total prevalence of 2,31% (n =2 953 244) for all the medicine items in the prescriptions with a cost of 3,65% (n =R379 91 1 472,OO). It was concluded that in the analysis of ACE inhibitors according to the innovator/generic classification, the majority of ACE inhibitors prescribed during the twelve-month period were for the innovator product, with a prevalence of 82,56% (n =68 162) and a cost of 89,11% (n =R13 863 080, 90). The utilisation of the generic ACE inhibitors, with a prevalence of 17,44% (n =68 162) and at a cost of 10,89% (n =R13 863 080, 90), was under-utilised. If the total number of prescriptions containing innovator ACE inhibitors could be generically substituted, (37,54%) R5 204 392,68 in cost expenditure could be saved over a twelve-month period. However, the fact that not all the innovator ACE inhibitors have generic equivalents available must be taken into account. If only the prescriptions containing ACE inhibitor items that have generic equivalents were to be substituted with their generic equivalents, R899 751.29(6.5%) would be saved. This was found by adding all the costs saved by substituting innovator drugs with their generics. Consequently, it can be concluded that the extensive use of the innovator ACE inhibitors could mean an exceptional increase in the cost expenditure associated with ACE inhibitor therapy. In completion of the study, recommendations were formulated as an aim to optimise the utilisation of ACE inhibitor generic equivalents. / Thesis (M. Pharm.)--North-West University, Potchefstroom Campus, 2004.

A system has been developed and is being used at H. M. -Ltd. for estimating the labour and overhead costs of components manufactured by a wide variety of production processes. The system uses multiple linear regression analysis to develop estimating equations that quantitatively measure the relationship between the production time of a component and the factors that influence this time. Production times can then be converted to cost using appropriate labour and overhead cost rates. The system uses design features only for predictor variables in the estimating equations. Hence designers with little concept of manufacturing methods can use the system to cost designs as they evolve. This feature therefore provides designers with a powerful cost optimization tool. The manufacturing time data used to develop estimating equations represents current operating conditions at Herbert Morris Ltd. Hence the estimated times can be used directly as standard times for the planning and control of manufacturing. In this way manufacturing costs will be directly linked to the design features of a product. Software has been developed to allow a computer to retrieve appropriate equations and compute the production times and costs of components. This software could form the basis for a larger system that also generates producibility data for designers. A method of allowing designers to estimate the development times for individual components and assemblies has been developed. This facility enables the design process to be scheduled such that the overall new product development time could be minimized. An important element of this scheduling method is the ability to allocate resources between components to be designed on the basis of relative cost and importance to. the overall success of the project.

Over the past few years, the Swedish Armed Forces (SAF) in similarity with forces inmany other countries has been undergoing a major process of change. One of the majorreforms is the government‘s decision to replace the compulsory military service with aprofessional army. In order to manage this, SAF requires tools to evaluate the long-termconsequences of different decisions regarding its manpower, such as different recruitment,training and educations policies, mission rehearsal, mission planning, and etc.These tools should, for instance, include information about different type of resourcessuch as weapon systems and materials required for conducting training and missions, asthey directly affect planning of courses, training sessions, etc. These resources have a totallife cycle cost that besides the acquisition cost includes maintenance costs, cost forspare parts and cost of human resources which are required for training and deploymentof the resource.This thesis has been performed in collaboration with FOI (Swedish Defence ResearchAgency) in order to support development of a decision support simulation tool for assistingin the personnel planning process of the SAF. The main objective is to determinethe connection between LCC (Life cycle cost) of personnel and LCC of system Hence,the study facilitates flow of information between the Human Resource Department atSAF and the Defence Material Administration (FMV) in order to base their decisionmaking process on more accurate and complete information about resource costs relatedto different activities that are important to both organizations.In this paper, the inductive approach is the chosen approach as appropriate theories arestudied and used for making hypothesis in order to create a new model. Consequentlythe interpretive approach is deployed as it is associated with this reasoning style. Furthermore,the research purpose is exploratory as it is essential to identify the resourcescost factors and the relations between them.The research strategy is case study and the utilized technique for collecting primary datais interview. The secondary data is gathered by studying hard or digital copy of books,articles, journals, handbooks and dictionaries.Hence, through a set of interviews, information about different activities regarding theeducation and operation phases of the fighter pilots at the Swedish Air Force has beencollected. As a result a corresponding model consisting of resources employed in thoseiiactivities and their relation has been developed. The model is based on the Unified EnterpriseCompetence Modelling Language (UECML).The contributions of this thesis are (1) Identification of the cost factors of personnelrelatedactivities including courses, training sessions and missions, 2) Classification ofcost factor elements in a number of classes, and 3) Illustrating the connections betweenthe classes using UECML.

Walking tracks with provision for overnight stays exist in many countries. They are a tourism drawcard and some (e.g. the Milford Track in New Zealand) have icon status. In Australia, long-distance tracks exist in most states but had not until recently been developed in north Queensland. The working hypothesis for this thesis is that a new long-distance walking track in the tropical rainforest environment could be a valuable recreation asset for the region, and a major tourism attractor. Since a long-distance walking track in a natural environment would be situated in a rural region away from major cities, there is potential for tourism expenditure by long-distance hikers to contribute positively to the economy of remote towns. It is proposed that a walking track can be created relatively easily in the rainforests if disused former logging roads are used as the basis. The new walking track on a logging road base could be developed at moderate cost, and with minimal ecological and environmental disturbance. A new track created within a protected natural area is usually regarded as a public good and most associated costs may be considered to be appropriately funded through the taxation system. However, it may be argued that the recreational use of a long-distance walking track provides benefits to those who use it, and that hikers should contribute towards the recovery of managerial costs. An appropriate level of user fee may be obtained from a market model. In this thesis, an annual market model is estimated for the recreation service which provides a short-term efficient price. A long-distance walking track is an investment in recreation infrastructure the benefits of which are intergenerational. Thus efficiency in the long-term is also an important consideration. Both a static analysis and cost-benefit dynamic analysis are presented in this thesis. When a track does not exist (as was the case in north Queensland when this thesis commenced) or when it is under construction (as when the thesis was nearing completion), direct evaluation is not possible and so demand (consumer surplus) and supply (marginal cost of recreation service) estimates for a new track must be obtained from other sources. A key original contribution in this thesis is the application of economic transfer to derive a market model for a proposed recreation service infrastructure item, and a further application of economic transfer involves the use of the benefit level from the market model as an input into the cost-benefit analysis. Demand estimates have been obtained from surveys of visitors on two other walking tracks in north Queensland. Zonal travel cost methodology has been applied to the survey data to develop demand curves for these long-distance hiking opportunities and measures of value in terms of consumer surplus. Zonal rather than individual travel cost was necessary since most respondents were walking the particular track for the first time. Since the Centenary of Federation in Australia in 2001, when seed funding was made available, some new long-distance walking tracks have been developed in the Queensland Wet Tropics World Heritage Area. One of these has been selected as the case study developing track for this thesis. Demand and cost estimates for the new trail have been transferred, with appropriate adjustments, from the studies conducted on the two other trails. An interesting feature in this transfer process is that close substitutes exist for the target walking track but not for either of the two source walking tracks. An innovation in this thesis is the development of a market model for the new track. Two market models are derived, one from each of the source tracks, and are used to determine the socially efficient price and visitation levels. These may be used by management as a basis for the setting of user fees. The equilibrium values obtained from the static analysis have also been incorporated into the dynamic analysis together with the consumer surplus estimates from the travel cost demand curve. The equilibrium quantities provide the basis for an estimate of the visitation level expected for the new track on which many of the continuing management costs depend. Two scenarios (with and without hut infrastructure) have been investigated in cost-benefit analyses. Both scenarios were found to be economically worthwhile.