A FIFTY-YEAR EDITORIAL HISTORY OF THE ENGINEERING ECONOMIST

One problem with internal race of return is the possibility that given cash flows may result in more than one internal rate of return. The purpose of this paper is to develop a method for determining relevance of an internal rate of return. An Internal rate of return is considered relevant if its derivatives with respect to each of the cash flows are positive. It is determined that the necessary and sufficient conditions for relevance are: (1) the net future value function has a negative derivative at a relevant root; and (2) a relevant Internal rate of return must be greater than -1. Our method of analysis identifies a single relevant rate for the dual race problem and for a special case when there are three rates, However, when more than one Internal rate of return meets the conditions for relevance, our analysis cannot be extended to choose among the relevant rates.     

THE IDENTIFICATION OF TARGET FIRMS AND FUNCTIONAL AREAS FOR STRATEGIC BENCHMARKING

In recent years there has been an increased emphasis on quality, Total Quality Management (TQM), and re-engineering. The practice of benchmarking is inherent to the success of any of these. Despite its obvious strategic implications, benchmarking has received little theoretical or analytical attention in the literature. Moreover, studies show that many firms are unsure about how to implement the benchmarking process. A critical aspect of benchmarking is the identification of who to benchmark against and what functional areas to benchmark. In this paper we show that Data Envelopment Analysis (DEA) can provide a structured methodology which, when used in conjunction with expert/managerial insight, can be a useful toot for providing necessary analytic support for the managerial practice of benchmarking. DEA uses multiple input and multiple output measures to assess efficiency. In this paper we first use DEA analysis to identify a subset of efficient firms which could be targeted for benchmarking. In a second stage, a constrained least absolute value (goal programming) method is used to ascertain input elasticities for the designated efficient firms in order to pinpoint important specific areas for benchmarking comparisons. We use macro-level data from the computer industry to illustrate this application of DEA and constrained least absolute value regression to benchmarking.     

DOMESTIC MARKETS AND INTERNATIONAL COMPETITIVENESS: GENERIC AND PRODUCT-SPECIFIC COMPETENCIES IN THE ENGINEERING SECTOR

This paper develops a theory of how the size of the domestic market shapes firm competencies. Our theory implies that large markets are beneficial even if factors such as economies of scale or learning effects are absent. We validate our model by an international comparison of the performance of firms that provide engineering services to the oil and petrochemical industry. We conclude that, relative to the United States, the competitiveness of European or Japanese industries is greater in activities whose underlying competencies are not product specific and can be utilized across a variety of products. The benefits of large markets are greatest for activities based on product-specific competencies. © 1997 by John Wiley & Sons, Ltd.     

我国主要童车产区扫描

据数据显示,我国每年约有1600万婴儿出生。婴儿用品市场空间不可小觑、觑,所以婴童用品产业被国家列为朝阳产业,而童车则在整个婴童产品消费中占到约20％的份额。随着童车市场的潜力不断释放,童车企业如雨后春笋般地不断涌现,这些企业借助政府在打造产区优势的政策帮扶下,逐步形成了一定的产区集群优势,并建立了相对完善的童车产业链。     

陕西省太空生物制药工程技术研究中心

西安亨通光华制药有限公司位于农业商新产业技术示范区——杨凌，公司注册资金4亿元，总投资11亿元，公司工业园区占地450亩。[第一段]     

MINUTES OF THE 2004 IIE ENGINEERING ECONOMY DIVISION BUSINESS MEETING

Destruction from natural and man-made disasters can result in extensive damage to the affected area's infrastructure. While the destruction results in costs that are necessary to restore the physical destruction and repair of existing infrastructure, a wider economic impact is often indirectly measured and felt. Policy-makers generally focus only on losses that are directly caused by the destruction, such as the replacement of roads and bridges, yet tend to overlook the consequences from indirect economic losses. This study proposes a framework to estimate the indirect economic loss due to damaged bridges within the highway system of a major metropolitan area. For the research, a simulated earthquake within the St. Louis metropolitan region is selected as a case study. The computable general equilibrium (CGE) model is applied as the loss estimation tool for modeling the indirect cost. The study results show that the indirect loss is significant when compared to the direct loss and should therefore be considered by policy-makers when making both pre- and post-disaster infrastructure decisions.     

AN ANALYSIS OF CONTRACT COST PHASING ON ENGINEERING AND CONSTRUCTION PROJECTS

The development and implementation of engineering and construction projects for new manufacturing facilities in the oil, gas, and petrochemical industry is largely contracted out. Progress and cost control by the owner is an intrinsic part of these projects. The results of an empirical analysis of payment and progress schedules for different contract types are presented, indicating a practice of advance payments on lump sum/fixed price contracts. The Value of Work Done concept and a normalized approximation function for progress control are discussed. The results provide guidance for progress management and contract cost phasing on engineering and construction projects.