4TH INDUSTRIAL REVOLUTION….DESIGN COSTING … SERIES 3
Indraneel Sen Gupta
In my third series, I find that under the 4th Industrial revolution design based costing plays a pivotal role. Small things with huge capacity, cheap things with huge quality are the key boon to support the 4th industrial revolution. I am talking about nanotechnology and its design costing impact on the global industry and the 4th Industrial revolution. I have discussed two subjects here where I find cost management and costing tools will have a huge impact in the coming days. The 1st one was Nanotechnology and the second is climate change and its economic aspect which leads to economic growth during these tough times of trade war without focusing much on export-driven economic growth. Well In my 1st part I will discuss the design costing and the upcoming Femtotechnology. But before all these, I will present the whole research in parts so that readers can absorb it slowly.
Cost management and cost reduction can be a boon for stopping the radical climate change. The biggest question which will strike everyone is that how this could be possible. Climate change has been a known global issue and no country is left from its curse. Cost management means efficiency in cost which is a reflection of the efficiency of the production process, improvisation of the traditional process and improvement in the society. Design costing has been an important topic which needs no introduction also since nanotechnology has changed the landscape of production and resources management. Nanotechnology is one of the finest products of design based cost management which improves the production and efficient resources management. This resource management creates a ripple effect on the climate and hence its boon.
Before we get into further we need to clear few meanings deeply. Nano is the prefix that refers to a one billionth of a quantity in many sciences like physics. Since dimensions of an atom are about 10nano-meters, this prefix is popular in studying atoms and molecules as well. Nano was coined by Richard P. Feynman’s classic talk at the annual meeting of the American Physical Society at the California Institute of technology in 29thDecember, 1959. Later, Feynman’s idea was followed by Eric Drexler.
The main difference of nanotechnology in comparison with other technologies lies in materials scale and structure of this technology. Thus, nanotechnology is in relation with the production process which has an important effect on the implementation of this phenomenon. This is one of the finest design based technological improvisation which has a huge impact on the climate.
Climate change targets can only be achieved when efficient production and resource management is being implemented and this subject is dominated by cost accountants since they are being taught about these two key areas. Cost reduction leads to the elimination of inefficiencies and hence journey from better to best in terms of manufacturing.
Capitalist and business models don’t want to deploy capital to change the traditional cost of production since they will have to face a longer gestation period in improving the production process. This has been evident in many countries due to which these countries don’t implement the climate change related trade policies in a faster way. Private segment shy away from the investments and they demand more tax benefits for implementing the same which is actually at the cost of the economy. Capitalist minds always stay away from these transformation phases. This area has now been broken and disruptive production and business models have come up to give a challenge to the capitalist mindsets.
Nanotechnology has a huge impact on the energy cost saving and reduction of carbon dioxide into the atmosphere. Costing tools improves the design cost and hence a vast number of industries gets to benefit from the Nanotechnology segment. Nan technological approaches like light-emitting diodes (LEDs) or quantum caged atoms (QCAs) lead to a strong reduction of energy consumption for illumination.
Lighter stronger materials are being produced in manufacturing which leads to efficiency in production and also saves energy cost significantly. Skyscrapers and construction industry get a significant boost up from the nanotechnology-driven production process with low-cost material but with a high density of quality. The current steel designs are based on the reduction in the allowable stress, service life or regular inspection regime. Extra copper of nano-particles reduces the surface unevenness of steel which then limits the number of stress risers and hence fatigue cracking. Design costing leads to business opportunities and creates disruptive growth avenues replacing the traditional process.
But the world is moving ahead of Nanotechnology now. The 4th Industrial revolution would improvise the efficiency of the production process and would lead a quantum jump in the cost management segment. Climate issues can be resolved provided the too much capital chasing limited assets are being realigned and focused towards the climate change. Climate change would result in a stupendous implementation of costing tools and design costing methods which leads to change of production process. Export-driven economic growth is not the way for s sustainable economic growth. The recent trade war and its impact on the export-driven economy will be very harsh on the society and on the GDP growth.
It’s not about a number, rather I am about the economic growth distributed among the society. We have seen historically that a huge amount of capital keeps chasing a limited asset class or segment. This is due to the capitalist mindsets and lack of government policies to frame equal growth within its own economy. Today we find that there is a wide disparity of economic growth within countries internal due to lack of vision.
Climate change is an opportunity for the economic growth provided efficient policies are being deployed to bridge the gap which is existing within every country. One can pick up any country to find the widening gap of growth. The best I can remember now is the growth of the German economy and the rest of the EU. China today is facing trade war problems, well it can easily mitigate the risk of slowdown provided it fasten the process of adhering to the climate goals. These goals itself are highly economic growth supportive. Climate change is an integral part of the 4th industrial revolution and one should work on the lines to get growth. I repeat again what I have said many times in my previous articles that all traditional economic theory is redundant and 4th industrial revolution will create new theories.