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Bridle Paths (Hardcover)
Isaac Rusling Pennypacker; Created by Christopher Sower Company
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R816
Discovery Miles 8 160
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Ships in 10 - 15 working days
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Information is power in supply chain operations, negotiations,
continuous improvement programs, and process improvement, and
indeed in all aspects of managing an operation. Accurate and timely
information can result in better decisions that translate into
improvement of bottom line results. The development and effective
use of cost modeling as a method to understand the cost of
products, services, and processes can help drive improvements in
the quality and timeliness of decision making. In the supply chain
community an understanding of the actual cost structures of
products and services, whether with new or non-partner suppliers,
can facilitate fact-based discussions which are more likely to
result in agreements that are competitively priced and with fair
margins. Further, accurate cost models which are cooperatively
developed between supply chain partners can form the basis for
joint efforts to reduce non-value-added costs and provide
additional focus towards operational improvement.While many
organizations feel confident they have an understanding of the cost
structure for products and services produced internally, cost
modeling often uncovers areas where significant cost improvement
can be obtained. Cost of quality is a particular type of internal
cost model that analyzes the true costs associated with the
production of less than perfect products and services. The
development of a cost of quality model can provide insight into how
products or services of higher quality can be produced at lower
cost.This book provides the business student or professional a
concise guide to the creation and effective use of both internal
and external cost models. Development of internal cost models is
discussed with illustrations showing how they can be deployed to
assist in new product development, pricing decisions, make-or-buy
decisions and the identification of opportunities for internal
process improvement projects. The creation and use of external cost
models are discussed providing insight into how their use can drive
collaborative improvement efforts among supply chain partners,
better prepare for price negotiations, and keep negotiations
focused on facts rather than emotions - all while allowing for
future discussions with preferred suppliers to focus on more
strategic and operational improvement initiatives, and less on
pricing. A number of detailed cost model examples are provided to
educate on both how cost models are constructed, and to demonstrate
how they have been effectively deployed.
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