Predictive Cost Reduction Based On A Thermodynamic Model

• US 20080235067A1
• Filed: 03/20/2008
• Published: 09/25/2008
• Est. Priority Date: 03/20/2007
• Status: Active Grant

• Current Assignee: Accenture Global Services Limited (Accenture PLC)
• Original Assignee: Accenture (Accenture PLC)
• Inventors: George, Michael L.
• Granted Patent: US 8,069,122 B2
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 30/0283 Price estimation or determination

Abstract

Predictive cost reduction based on a thermodynamic model, in which parameters associated with a process are accessed. The parameters include a quantity of units of work-in-process at first and second times, and first and second constants respectively indicative of growth between the first and second times, and of a translated reduction of the work-in-process to a reduction of cost. A thermodynamic model is applied to the accessed parameters, and a predictive cost reduction associated with an improvement of the process based on applying the thermodynamic model is output.

Claims

1. A cost reduction system comprising:

a thermodynamic model configured to determine a predictive cost reduction for a process, the predictive cost reduction being derived from thermodynamic principles;

a processor configured to;

access parameters associated with a process, the parameters comprising;

a quantity of units of work-in-process at first and second times, and

first and second constants respectively indicative of growth between the first and second times, and of a translated reduction of the work-in-process to a reduction of cost,

apply the thermodynamic model to the accessed parameters, and

determine a predictive cost reduction associated with an improvement of the process; and

an output module configured to output the determined predictive cost reduction.

2. A computer-implemented method:

accessing parameters associated with a process, the parameters comprising;

a quantity of units of work-in-process at first and second times, and

first and second constants respectively indicative of growth between the first and second times, and of a translated reduction of the work-in-process to a reduction of cost;

applying a thermodynamic model to the accessed parameters; and

outputting, based on applying the thermodynamic model, a predictive cost reduction associated with an improvement of the process.

3. The computer-implemented method of claim 2, wherein the thermodynamic model is derived from Carnot'"'"'s equation.

4. The computer-implemented method of claim 3, wherein the thermodynamic model derived from Carnot'"'"'s equation comprises an expression analogous to Carnot'"'"'s equation, the expression being derived from Little'"'"'s Law.

5. The computer-implemented method of claim 2, wherein the second constant indicative of a translated reduction in work-in-process to a reduction in cost comprises a constant indicative of a reduction in entropy corresponding to a reduction in cost.

6. The computer-implemented method of claim 2, wherein the first constant indicative of growth comprises a ratio of an economic value at the second time and the economic value at the first time.

7. The computer-implemented method of claim 6, wherein the economic value at the second time represents demand at the second time, and the economic value at the first time represents demand at the first time.

8. The computer-implemented method of claim 6, wherein the economic value at the second time represents revenue at the second time, and the economic value at the first time represents revenue at the first time.

9. The computer-implemented method of claim 6, wherein the economic value at the second time represents units produced at the second time, and the economic value at the first time represents units produced at the first time.

10. The computer-implemented method of claim 5, wherein applying the thermodynamic model further comprises determining the predictive cost reduction using:

11. The computer-implemented method of claim 10, wherein the second constant has a value between 0.09 and 0.11.

12. The computer-implemented method of claim 2, further comprising determining the first and second constants based on empirical data.

13. The computer-implemented method of claim 2, wherein the process comprises value-added costs and non-value added costs, and the non-value added costs comprise 50% or more of a total cost associated with the process.

14. The computer-implemented method of claim 13, wherein the non-value added costs comprise rework of at least one of the units of work-in-process, the rework including performing the at least one of the units of work in process more than one time.

15. The computer-implemented method of claim 14, wherein the total cost associated with the process is driven by the rework.

16. The computer-implemented method of claim 3, wherein the cost reduction is proportional to the logarithm of a reduction in the quantity of units of work-in-process from the first time to the second time.

17. The computer implemented method of claim 2, further comprising modifying the process based on the predictive cost reduction.

18. A computer-implemented method comprising outputting a predictive cost reduction associated with improvement of a process, the predictive cost reduction being based on applying a thermodynamic model to an accessed quantity of units of work-in-process at various times, and constants indicative of growth between the various times, and of a translated reduction of work-in-process to reduction of cost.

19. The computer-implemented method of claim 18, wherein the thermodynamic model is derived from Carnot'"'"'s equation.

20. The computer-implemented method of claim 19, wherein the thermodynamic model derived from Carnot'"'"'s equation comprises an expression analogous to Carnot'"'"'s equation, the expression being derived from Little'"'"'s Law.

21. The computer-implemented method of claim 18, wherein the constants indicative of growth comprise a ratio of an economic value at one of the various times and the economic value at another of the various times.

22. The computer-implemented method of claim 21, wherein the economic value represents demand.

23. The computer-implemented method of claim 21, wherein the economic value represents revenue.

24. The computer-implemented method of claim 18, wherein applying the thermodynamic model further comprises determining the predictive cost reduction using:

25. A computer program product, tangibly embodied in a machine-readable medium, the computer program product comprising instructions that, when read by a machine, operate to cause a data processing apparatus to:

access parameters associated with a process, the parameters comprising;

a quantity of units of work-in-process at first and second times, and first and second constants respectively indicative of growth between the first and second times, and of a translated reduction of the work-in-process to a reduction of cost;

apply a thermodynamic model to the accessed parameters; and

output, based on applying the thermodynamic model, a predictive cost reduction associated with an improvement of the process.

26. The computer program product of claim 25, wherein the thermodynamic model is derived from Carnot'"'"'s equation.

27. The computer program product of claim 26, wherein applying the thermodynamic model further comprises determining the predictive cost reduction using: