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Does international competition enhance capacity utilisation? Evidence from Indonesia, Philippine and Vietnam

Does international competition enhance capacity utilisation? Evidence from Indonesia, Philippine and Vietnam

It is clear from both linear and u-shaped models that the variable measuring firm export intensity is positively significant in explaining the capacity utilisation of a firm. Within the two models the export intensity coefficients are statistically significant at 1 per cent level. Holding all else constant, a one-percentage point increase in the percent of export is associated with a 0.062 to 0.662 percentage point increase in capacity utilisation. These results support the hypotheses specified in this study (the degree of capacity utilisation is expected to increase as the firms’ export intensity increases) and are corresponding to previous studies concluded that international engagement may increase demand and competition for a firm’s product that raise its capacity utilisation. Exporters, therefore, should demonstrate higher productivity and efficiency than non-exporters (Goldberg et al., 2005). These result, however, are inconsistent with the initial finding (non-exporting SMEs have a relatively higher mean of capacity utilisation than their exporting counterparts), suggesting that the sample developing ASEAN SMEs have a strong orientation on large domestic markets and exporting SMEs might be simply shedding their underutilized capacity to marginal markets through learning-by-exporting approach. The u-shaped model, further, suggests that although SMEs should increase their export intensity as to allow for more capacity utilisation to take place, past a certain point, increased export intensity will increase capacity utilisation by only insignificant amount. More exactly, all things being equal, increased export intensity that passes the slope of 0.528 (0.661/(2*0.626) or approximately after 50 per cent of total sales will, in fact, decreases expected capacity utilisation. The stated hypotheses (the degree of capacity utilization is expected to falls as the firm’s export intensity decreases), therefore, is accepted at 1 per cent significance level as capacity utilisation is declining as the export intensity descends after reaching 50 per cent of total sales.

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Capacity Utilisation and Unemployment in Selected West Africa Countries

Capacity Utilisation and Unemployment in Selected West Africa Countries

More recently, attention has been diverted from labour market “flexibility” to the potential impact of changes in interest rates and capital shortage on the un- employment rate that is consistent with non-accelerating inflation (NAIRU), and wages (Allen and Nixon [2], Arestis and Biefang-Frisancho Mariscal [3], Bean [4], Rowthorn [5] [6], Sawyer [7]). Much of the debate on the relationship between capital shortage and unemployment seems to be concerned with the degree of substitutability between labour and capital (Bean [4], Jerger [8], Row- thorn [6]). In response to the fluctuations in oil prices, contractionary monetary and fiscal policies were introduced which squeezed profits and investment, so that capital stock fell below a level adequate for high levels of employment. Real wages were too high for changed productivity conditions and excessive substitu- tion of capital for labour with a prevalence of capital intensive investment was introduced. As a result, labour requirement for any given level of output was reduced. As a consequence of the pace and quality of capital accumulation, the level of employment corresponding to full utilisation of capital stock was lower than that would correspond with full employment (however that may be meas- ured). Gordon [9] finds that countries that experienced the largest slowdown in capital accumulation per labour hour faced the highest unemployment rates. He concluded that the European countries did not have sufficient capital in the 1980s to equip all employees who would have had a job if unemployment rates remained the same as in the 1970s. Bean [4] predicted a similar result. Capacity utilisation adjustment is an important mechanism ensuring adjustment to the macroeconomic equilibrium. Low capacity utilisation is a concern for fiscal and monetary authorities that are willing to engage in simulation aiming particularly at the level of unemployment. The argument of this study is that low capacity utilisation leads to higher unemployment which in turn creates even greater slake in the economy. The main research question which remains unanswered in the literature, is how the labour market reacts to capacity utilisation changes.

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Informing additive manufacturing technology adoption: total cost and the impact of capacity utilisation

Informing additive manufacturing technology adoption: total cost and the impact of capacity utilisation

Informing Additive Manufacturing (AM) technology adoption decisions, this paper investigates the relationship between build volume capacity utilisation and efficient technology operation in an inter-process comparison of the costs of manufacturing a complex component used in the packaging industry. Confronting the reported costs of a conventional machining and welding pathway with an estimator of the costs incurred through an AM route utilising Direct Metal Laser Sintering (DMLS), we weave together four aspects: optimised capacity utilisation, ancillary process steps, the effect of build failure, and design adaptation. Recognising that AM users can fill unused machine capacity with other, potentially unrelated, geometries, we posit a characteristic of “fungible” build capacity. This aspect is integrated in the cost estimation framework through computational build volume packing, drawing on a basket of sample geometries. We show that the unit cost in mixed builds at full capacity is lower than in builds limited to a single type of geometry; in our study this results in a mean unit cost overstatement of 157%. The estimated manufacturing costs savings from AM adoption range from 36% to 46%. Additionally, we indicate that operating cost savings resulting from design adaptation are likely to far outweigh the manufacturing cost advantage.

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Capacity utilisation, effective demand and unsteady growth

Capacity utilisation, effective demand and unsteady growth

So long as investors carry on believing that current utilisation is the best indication of future capacity utilisation, capacity utilisation itself will keep adjusting until saving and investment become equal. When this equality is obtained, it means that the degree of capacity utilisation which justifies a particular growth rate of capacity turns out to be precisely the degree which equates saving and investment. Expectations are fulfilled: the conventional way of extracting knowledge from a not entirely adequate evidence proves effective. However, fulfilment of expectations may not be enough to keep the system going once equilibrium has been reached. Only when hypotheses have to be tested against experience can individuals assume, having seen their expectations confirmed, to have discovered the "true" model of the economy. In this approach hypotheses are validated by a process of knowledge which may have nothing to do with empirical verification. The crucial question is whether there exists any ground for believing that some variable will assume a particular value in the future. The consequence is that the ground for rational belief can change regardless of whether expectations are fulfilled or not. This means that equilibrium is maintained only as long as the convention holds good.

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IMPROVING CAPACITY UTILISATION OF FURNITURE MANUFACTURING SMEs THROUGH MARKET BASED VIEW: A CASE OF GWERU, ZIMBABWE

IMPROVING CAPACITY UTILISATION OF FURNITURE MANUFACTURING SMEs THROUGH MARKET BASED VIEW: A CASE OF GWERU, ZIMBABWE

Organisations both large and small can improve their capacity utilization through new product development. Coker and Helo (2016) denoted that Product development in refers to actions such as new product introductions, adjusting modular variations in functionality, or re-aiming the price-point for products to cover more customers. Furthermore, a new product can be referred as original products, product improvement, product modifications and new brands that the firm develops through its own research and development effort. Ewah et al (2008) defines new products as the life blood of companies, large or small. In addition he also states that new product can be defined as an innovation or modification or invention of an existing product to an extent that consumer perceive the modified version as a different or existing product just entering the market. New product development can contribute to the success of many companies who have a knowhow on the new product development.

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Link Volume And Capacity Utilisation Of Roads in Kondotty Town

Link Volume And Capacity Utilisation Of Roads in Kondotty Town

It is shown that the v/c value is maximum for the road stretch between Kondotty-17 junction and Pandikkadu, followed by Kuruppath Junction – Kodangad Junction. It was observed from analysis that the road stretch between Pandikkadu and Kondotty 17 were over utilised to about 2 times its handling capacity. The volume-capacity ratio for all stretches between the end nodes of NH 966 within the study area is more than the threshold value of 1. In short, even in the current scenario, the road stretches on NH is having the highest volume-capacity ratio and hence needs capacity augmentation. The other road stretch having V/C ratio equal to or greater than one is which connects Thangals road and Chungam Junction on SH 65.The lowest V/C ratio is found on Thangals Road.

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Structural Time Series Modelling of Capacity Utilisation

Structural Time Series Modelling of Capacity Utilisation

a deterministic polynomial trend. (iii) The monthly capacity series is obtained by linear interpolation of the end of year refined estimate. (iv) A further adjustment called annual capability adjustment is made to obtain more appropriate levels of utilization. (v) The individual series are aggregated into market and industry groups applying value-added weights. (vi) The utilization rates for each individual series and groups are calculated by dividing the pertinent production index by the related capacity index.

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Addressing nodal constraints on the capacity of railways

Addressing nodal constraints on the capacity of railways

Having established a measure of capacity utilisation for network nodes, the second stage of the OCCASION project entailed the development of methods for the re-routeing and re-sequencing of trains through the junctions and stations in the case study area, with the objective of minimising nodal capacity utilisation, and thus maximising reliability and potentially releasing capacity for additional services. This element of the project made use of well-established job shop scheduling techniques, whereby trains are treated as ‘jobs’ to be processed by ‘machines’ comprising the links and nodes of the railway network, train movements are treated as the ‘operations’ performed on jobs, and the sectional running times of trains through track sections are treated as the corresponding jobs’ processing times. The relationship between train scheduling and production scheduling has been known for some time, since the pioneering work conducted by Szpigel (14); however, its use for solving practical problems is comparatively recent, including, for example, its application by Liu and Kozan (15), in the form of a blocking parallel machine job shop scheduling problem, to the Train Timetabling Problem (TTP) on Australian railways.

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An Empirical Study of Labour’s Share in Income for Australia

An Empirical Study of Labour’s Share in Income for Australia

Weisskopf’s work on the rate of profit. Henley finds that a continued downward pressure on profitability is explained by capacity utilisation, in contrast to Weisskopf’s explanation of rising labour share. Raffalovich, Leicht and Wallace (1992) test several hypotheses regarding the impact of macroeconomic performance on the distribution of income between labour and capital in the United States during the period from 1950 to 1980.

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Interest rates, distribution and capital accumulation – A Post Kaleckian perspective on the US and Germany

Interest rates, distribution and capital accumulation – A Post Kaleckian perspective on the US and Germany

2.2. Effects of interest rate variations on capacity utilisation, accumulation and profits Following the Post-Keynesian ‘horizontalist view’, pioneered by Kaldor (1970, 1982, 1985), Lavoie (1984, 1996b) and Moore (1988, 1989a), we consider the rate of interest to be the exogenous variable in our model mainly determined by the interest rate policies of the central bank. 13 The volume of credit (as a flow) and the quantity of money (as a stock), however, are therefore endogenous to the income generation and accumulation process. The volume of credit supply is determined by the credit demand which commercial banks consider creditworthy, that is by that part of credit demand which is able to supply securities accepted by the central bank as collateral when providing commercial banks with central bank money in the money market. Loan demand which commercial banks deem creditworthy is granted, deposits are created with commercial banks, and the central bank accommodates the required amount of central bank money. The central bank determines the price for central bank money, the base rate of interest, and commercial banks mark- up this base rate when supplying credit to investors. The mark-up is affected by the degree of competition in the banking sector, on the one hand, and by commercial banks’ liquidity preference and risk assessment, on the other hand.

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The impact of the crisis on italian industrial capacity: an assessment based on the istat manufacturing survey

The impact of the crisis on italian industrial capacity: an assessment based on the istat manufacturing survey

However, potential capacity and potential output are inherently unobservable variables, and estimating them is not an easy task: various methods, relying both on univariate and multivariate techniques, have been used in the literature, but results are often un - satisfactory, especially because they are found to depend heavily on the method chosen to filter original variables (GDP, Industrial production, capacity utilization, the unemployment rate) and to be prone to large revisions over time, especially at endpoints (see on this, among others, Orphanides and van Norden, 2002). The aim of this paper is to try to derive a capacity gap measure that will not depend on filtering or econometric techniques, relying uniquely on firm - level information: in doing so we will make use of data stemming from the ISTAT manufacturing survey regarding the level of capacity utilisation. From those data, we will derive a Non Inflationary Rate of Capacity Utilisation (NIRCU), which can be considered as the equivalent of the well - known Non inflationary rate of unemployment (NIRU) firstly introduced in the literature by Modigliani and Papademos (1975).According to the definition, the NIRCU is the capacity rate at which firms do not feel any pressures to adjust their selling prices; thus the NIRCU is defined as the level of capacity associated with zero investment gap and no change in prices. This definition has been first used by Koberl and Lein (2011) for the Swiss economy; different measures for the Austrian and Brazilian economy have recently been derived by Fesserl et al (2014) and Bezerra and Malgarini (2014), respectively. The main innovation of the Koberl - Lein paper is that their measure of the NIRCU is not derived from appropriately filtering current capacity utilisation, but rather from micro - level information based on survey data; in this way, they are able to circumvent some of the typical problems associated with data filtering, especially that of being particularly affected by data revision towards the end of the sample, exactly when the information is particularly relevant for policy makers. Moreover, filtering methods (e.g., Kalman Filter) often rely on strong statistical assumptions (e.g. trend and cycle components being uncorrelated), lacking solid theoretical support. On the other hand, the Koberl and Lein approach uses firm level information concerning the level of capacity utilisation and price expectations; on the basis of those information, according to this methodology it is possible to link the utilisation rate to the knowledge of whether, and at what given utilisation rate, a firm expects to adjust

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The pipfruit export season at the Port of Napier container terminal : an exploratory case study : a thesis submitted in partial fulfilment of the requirements for the degree of Master of Logistics and Supply Chain Management at Massey University, Palmerst

The pipfruit export season at the Port of Napier container terminal : an exploratory case study : a thesis submitted in partial fulfilment of the requirements for the degree of Master of Logistics and Supply Chain Management at Massey University, Palmerston North

ownership structures. Private companies are not obligated to do so and do not normally divulge such information. Fees may apply to access such information but some may be available from trade journals, newspapers or databases on the Internet (Veal, 2005). As an employee of the Port of Napier, the researcher was in the privileged position of having access to the company data base. The Information Officer was contacted by email and kindly asked to furnish records pertaining to vessel calls, vessel exchange lengths, reefer capacity utilisation, reefer dwell times and rehandles for the period between January 2008 and December 2009. These records were used to address Research Question 4 which is to find out what happens in the terminal during the pipfruit export season in the second analysis chapter (Chapter 6). Secondary qualitative data was retrieved from the websites of the four exporters interviewed, the New Zealand Shipping Gazette and the Port of Napier weekly newsletter, and combined with the interviews to present the first analysis chapter (Chapter 5). The data collected was saved in the case study database on the researcher’s computer.

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THE EFFECT OF ECONOMIC DETERMINANTS ON PERFORMANCE OF DAIRY COOPERATIVE SOCIETIES IN KERICHO COUNTY, KENYA

THE EFFECT OF ECONOMIC DETERMINANTS ON PERFORMANCE OF DAIRY COOPERATIVE SOCIETIES IN KERICHO COUNTY, KENYA

It is further recommended that the cooperatives prepare and implement strategic plans to promote structured and focused decisions and actions to achieve development, growth and enhanced performance in dynamic economic environment characterized by technological changes, industrialization, liberalisation and globalisation affecting business enterprises. The key strategic thrusts should include capital formation which is the most important economic determinant of performance. Other critical strategic thrusts required for the cooperatives are; development of entrepreneurship, capacity utilisation, adoption of technology and competition.

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Complex railway systems: capacity and utilisation of interconnected networks

Complex railway systems: capacity and utilisation of interconnected networks

Basically the approach indicates elements which should be kept under observation, but it might happen that the sections or stations identified as critical would result to be less prob- lematic with a more accurate and complete analysis. The pro- posed procedure, in fact, considers mainly the topological configuration of the system (length of the line, distances be- tween consecutive stations, number of block section per seg- ment, extension of the stations’ areas and number of plat- forms, etc.), the composition of the rolling stock (suburban/ metropolitan, regional, long distance or freight trains) and the performance of the vehicles (speed, acceleration, deceleration) while neglecting other elements influencing, in a more or less direct way, the rail capacity, such as: the adopted operating systems, the cyclic (or not) clocking of the services (influenc- ing considerably the regularity), the station equipment (traffic/ routes control and safety system), the elastic release of routes, the overlap of block sections, etc.

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Reconfiguration in multi class of services networks

Reconfiguration in multi class of services networks

Using an inverse capacity, the Cisco recommendation, as the shortest path routing metric gives the worst performance of all. This is true across different network loads in our experiments. The utilisation reaches 100% when the average demand is 57 Mbps. With the unit weight and weight setting, the 100% utilisation is reached when the total demand is 72 Mbps. Furthermore, due to the capacity constraints in the model, the weight setting can restrict the maximum utilisation at 100%, whilst the other results 120% and 155% (highest traffic load). Variation in the maximum link utilisation in the Unit Weight and Inv Cap case is higher because none of these models have capacity restriction.

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Determinants for receiving acupuncture for LBP and associated treatments: a prospective cohort study

Determinants for receiving acupuncture for LBP and associated treatments: a prospective cohort study

Results: A total of 179 (13 %) out of 1,345 patients received acupuncture treatment. The majority of those (59 %) had chronic LBP. Women and elderly patients were more likely to be given acupuncture. Additional determinants of acupuncture therapy were low functional capacity and chronicity of pain. Chronic (vs. acute) back pain OR 1.6 (CL 1.4– 2.9) was the only significant disease-related factor associated with the treatment. The strongest predictors for receiving acupuncture were consultation with a GP who offers acupuncture OR 3.5 (CL 2.9–4.1) and consultation with a specialist OR 2.1 (CL 1.9–2.3). After adjustment for patient characteristics, acupuncture remained associated with higher consultation rates and an increased use of other health care services like physiotherapy.

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The importance of gas infrastructure in power systems with high wind power penetrations

The importance of gas infrastructure in power systems with high wind power penetrations

The largest change in RCUC/SCUC and DQ flows due to wind generation occurs when the NWP pipeline is on outage. Both the SNIP and NTS lines experience increases of 3% and 6.5% respec- tively. The NWP pipeline effects a relatively small change in overall flows, representing a low stress gas system which is more suscep- tible to wind variability induced gas nomination changes. In con- trast, during the NTS outage, the SNIP pipeline operates at near 100% capacity over 50% of the time periods analysed. Therefore, the ability of wind to effect change on this high utilised pipeline is minimised since the main stress of the pipeline is supplying demand regardless of wind. In a less stressed state, the necessity to supply demand is much less, presenting an opportunity for the effect of wind forecast error to be accentuated. This is also applica- ble in the Inch case. However, the ability of the SNIP pipeline in the Inch scenario to supply fast acting gas generation in the event of a significant drop in wind power is severely limited. This would pre- sent a significant problem for the system operators, as lack of flex- ibility on the system to respond to high ramp up in residual demand could lead to significant level of load shedding on the sys- tem. In addition, large swings in gas demand for power generation assets negatively impact the shippers involved in the purchase of gas unit fuel. Uncertainty around fuel requirements and lack of available well developed storage infrastructure on the island of Ire- land increase the risk profile of gas unit operation. Large swings in wind generation ultimately increase the vulnerability of gas unit operators to the spot market instead of long term fuel contracts, directly impacting on the ability to operate the gas plant in the most economical fashion. As can be seen from the SMP results in Section 3.1, this uncertainty over gas flows and infrastructure oper- ation is directly passed onto consumers.

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