Strategic business management : from planning to performance

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A method of comparing the costs of platform and unique product design

Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 1999.Includes bibliographical references (leaf 34).by Adam J. King.S.M

Framework For Cost Modeling A Supply Chain

Researchers are interested in value chain analysis to identify the different opportunities for cost savings. The literature have been narrow in scope and addressed specific problems; however none has addressed the need for a general framework that can be used as a standard template in the supply chain cost management and optimization, though Dekker and Goor (2000) said that the goal was to develop a model that would allow direct comparison of specific activities between firms, such as warehousing activities costs. There was no indication in the literature of a cost model that can identify all costs and cost drivers through the supply chain. Some firms built models to analyze the effect of changes in activities but only with limited activities such as logistics. The purpose of this research is to create a general framework that can express the cost data for the partners of the supply chain in similar terms. The framework will layout the common activities identified within the firm and the relationship of these activities between the partners of the supply chain, and the framework will identify the effect of changes in activities on other partners within the supply chain. Cost information will help in making decisions about pricing, outsourcing, capital expenditures, and operational efficiency. The framework will be able to track cost through the chain, which will improve the flexibility of the supply chain to respond to rapidly changing technology. The framework will help in developing product strategy paradigms that encompass the dynamics of the market, in particular with respect to the technology adoption lifecycle

The Cost Saving Potential of Standardization, -a study at a global packaging company

To introduce a standardized component assortment takes a lot of effort in order to make real cost savings. The rationalization effect itself is important, but perhaps even more important is to state the aim of the standardization efforts in a well-defined way. How can an organization assure that they are working in a proper way? How do they know that their efforts are being interpreted into the whole organization? And, how do they know that the standardization efforts actually save money? Different components differ heavily e.g. in technical complexity and quality issues. The purpose of the master thesis is to identify the parameters affecting the potential of cost savings due to standardization of components. To standardize a component assortment is difficult and requires involvement from different functions within the organization. It is essential to state a defined purpose of the standardization work and assure that the actual efforts contribute to the overall savings. Generally a high volume value and quality aspects should have significant impact when prioritizing among the components. The result of this study suggests that pumps and valves should be prioritized

Methodology development for the cost-benefit analysis of pneumatic and electromechanical drive structures

Metodología de análisis del TCO (coste total de propiedad) para la comparación de estructuras neumáticas y electromecánicos basados en las propiedades mecánicas y los costes de adquisición y operación de cada tecnologíaDepartamento de Ingeniería Energética y FluidomecánicaMáster en Ingeniería Industria

A new framework for making sourcing decisions regarding low-volume, high-complexity products

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, February 2002.Includes bibliographical references (leaves 49-50).Compaq Computer Corporation's High Performance Systems Business Unit (HPSBU) manufactures a series of high-end computer servers called Alpha Servers. These servers are manufactured in relatively low volumes, typically for large institutions that require complex computer systems - either rapid number processing, as in scientific applications, or massive data processing, as in large database applications. They are mostly custom-configured for each customer, each server specifically assembled, and each system specifically configured to meet each customer's needs. As computer manufacturing processes become more standardized, and computers almost commoditized, it becomes impractical to manufacture all system components in-house. To that extent, Compaq has gradually outsourced more and more of the functions, which, combined, are necessary to deliver finished product to Compaq's Alpha Server customers. For instance, as computer manufacturing technology progressed, it quickly became evident, that keyboard manufacturing can, and should, be outsourced to a contract manufacturer, which can achieve economies of scale and produce large quantities of standard keyboards at minimal cost. On the other extreme, Compaq has made sure to keep most of its core competencies in-house, in order to preserve its competitive advantage. The key question faced by Compaq today is which functions to preserve in-house, and which to outsource. A new conceptual model for making this make or buy decision is presented. The purpose of this model is to raise the numerous issues at stake when considering outsourcing of a particular function, specifically when dealing with low-volume, high-complexity products, such as the Alpha Server. This model provides Compaq with a structured method of analyzing the various components that make up the finished product delivered to the customer, and deciding which need to be maintained in-house, which should be outsourced, and which of those can be outsourced. Initial model implementation was performed on the latest Alpha Server product family, dubbed Miracle for the purpose of this document.by Dan Moshe Grotsky.S.M.M.B.A