Understanding total cost ownership issues from a value analysis perspective

摘要: Commodity industrial products are no longer self-selling ticket items for manufacturers. Such manufacturers need to assess their value chain from a total cost ownership perspective both outsourced and in-house parts needed assemble the commodity product in order better compete market place. The key question becomes what procedures should follow understand mark-up behavior patterns documentation such parts? In identify eliminate waste at inter-firm intra-firm levels case study using analysis was conducted manufacturer that its component independent suppliers. Activity Based Management approach used added activities unnecessary resources these activities. Using simple affinity diagram approaches list of questions methodology were prepared analysis. Three models manufacturer’s required similar components but slightly different designs selected comparison purposes, drives determined. Problems differentiating strategies identified practical solutions offered.