Cost Estimation Tool Development for Industrial Site Service Activities by application of Service Design Methods
Yasir, Muhammad (2019)
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019100719666
https://urn.fi/URN:NBN:fi:amk-2019100719666
Tiivistelmä
Main objective of thesis is to develop a novel cost estimation model for industrial site service activities. This financial model is devised for a particular global industrial firm specialized in delivering electrical and automation solutions for marine business. General principles of the new cost estimation model can be also utilized for other industrial service organizations. Overall development of cost estimation tool is based on double diamond service design process which considers main aspects of user experience. Cost calculation tool is devised keeping in view the firm’s product portfolio and requirement of marine projects. This tool will be utilized by firm’s sales support engineers in estimating site costs of new building projects.
This thesis starts with introduction of shipping industry in general. It highlights the incredible growth in this sector owing to mainstream tourist activity which is boosting cruise industry and ever-increasing demand of cargo worldwide. In the beginning, overview of cost estimation methods for service business is given with aim to familiarize readers about challenges and key concepts. This acts as a guide and naturally helps readers in better understanding of the study.
Theoretical background of this thesis is built on various pricing methods and concepts that can be applied to service industry. It gives a solid foundation about pricing strategies and key principles about each method. This is followed by description of service design process, benefits of co-creation and discussion how service design process is utilized in this thesis for estimating the service pricing for the case study. Afterwards, there is discussion related to motivation for choosing double diamond process and details of how different service design tools help in our research process.
Empirical findings are based on detailed statistical analysis, depicting the dire need of new cost based financial model. Qualitative research pointed out the limitations of existing financial tool used in the firm and sheds light on the reasons behind its inability to rectify the errors embedded in existing cost estimation tool. New cost calculation tool is developed based on double diamond process and associated service design tools with emphasis on user needs and intended purpose.
Developed cost estimation tool was prototyped in Microsoft Excel and after rounds of feedback, it was tailored to address gaps present in the old monetizing model. Modular structure of new tool offers robustness and flexibility. It can be easily customized to future needs of the organization. Proposed cost estimation method presented in this thesis can be easily implemented in related service firms for estimating service and site cost estimation. This study showed a general approach how service design process and tools can be applied in developing financial schemes for service-based firms operating in diverse environments.
This thesis starts with introduction of shipping industry in general. It highlights the incredible growth in this sector owing to mainstream tourist activity which is boosting cruise industry and ever-increasing demand of cargo worldwide. In the beginning, overview of cost estimation methods for service business is given with aim to familiarize readers about challenges and key concepts. This acts as a guide and naturally helps readers in better understanding of the study.
Theoretical background of this thesis is built on various pricing methods and concepts that can be applied to service industry. It gives a solid foundation about pricing strategies and key principles about each method. This is followed by description of service design process, benefits of co-creation and discussion how service design process is utilized in this thesis for estimating the service pricing for the case study. Afterwards, there is discussion related to motivation for choosing double diamond process and details of how different service design tools help in our research process.
Empirical findings are based on detailed statistical analysis, depicting the dire need of new cost based financial model. Qualitative research pointed out the limitations of existing financial tool used in the firm and sheds light on the reasons behind its inability to rectify the errors embedded in existing cost estimation tool. New cost calculation tool is developed based on double diamond process and associated service design tools with emphasis on user needs and intended purpose.
Developed cost estimation tool was prototyped in Microsoft Excel and after rounds of feedback, it was tailored to address gaps present in the old monetizing model. Modular structure of new tool offers robustness and flexibility. It can be easily customized to future needs of the organization. Proposed cost estimation method presented in this thesis can be easily implemented in related service firms for estimating service and site cost estimation. This study showed a general approach how service design process and tools can be applied in developing financial schemes for service-based firms operating in diverse environments.