Tài liệu tiếng Anh thương mại quản lý Chapter 13 Total cost of ownership

Tài liệu tiếng Anh thương mại quản lý Chapter 13 Total cost of ownership

Chapter 13 Total Cost of Ownership 13-1 Total Cost of Ownership • Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business with a particular supplier for a particular good or service (Lisa Ellam, May 1999) TCO 13-2 Key Concepts • Three Components of Total Cost » Acquisition Costs » Ownerships Costs » Post-Ownership Costs • Purchase Price: But One Component of Cost 13-3 Key Concepts • TCO, Net Present Value Analysis (NPV), and Estimated Costs • The Importance of Total Cost of Ownership in Supply Management » Service Providers » Retail » Manufacturing 13-4 Three Components of Total Cost • Acquisition Costs • Ownerships Costs • Post-Ownership Costs 13-5 TCO Components • Acquisition costs » Purchase price » Planning costs » Quality costs » Taxes » Financing costs • Ownership costs » Downtime costs » Risk costs » Cycle time costs » Conversion costs » Non-value added costs » Supply chain costs • Post-ownership costs » Environmental costs » Warranty costs » Product liability costs » Customer dissatisfaction costs TCO 13-6 Acquisition Costs • Purchase Price • Planning Costs • Quality Costs • Taxes » Customs Duties and Tariffs » Regional Trade Agreements » Income-Base Shifting • Financing Costs 13-7 Ownership Costs • Downtime Costs • Risk Costs • Cycle Time Costs • Conversion Costs • Non-Value Added Costs • Supply Chain Costs 13-8 Ownership Costs • Supply Chain Costs » Forecasting » Administration » Transportation » Inventory » Manufacturing » Customer service » Supplier selection/relationships » Global sourcing 13-9 Post - Ownership Costs • Environmental Costs • Warranty Costs • Product Liability Costs • Customer Dissatisfaction Costs 13-10 [...]... (Alternative Method) Total of annual streams (from above) (120,000) Total of annual streams (from above) (120,000) 33,000 33,000 24,000 24,000 33,000 33,000 33,000 33,000 40,500 40,500 20% 20% Required rate of return Required rate of return 33,000 33,000 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Sum of present value of annual Sum of present value of annual streams equals net present value of streams equals... variance 13- 18 Activity Based Costing • A major problem in TCO analysis of manufacturers is accurate allocation of manufacturing overhead • Many manufacturers have used activity-based costing to help improve cost allocation • Activity-based costing (ABC) is a technique for accumulating cost for a given cost object that represents the total and true economic resources required or consumed by the object 13- 19... i=1 A = delivered acquisition cost P.V = net present value Ti = training costs in year i Oi = operating costs in year i Mi = maintenance costs in year i Sn = salvage value in year n 13- 13 PVA Incorporated into a TCO Analysis Acquisition Cost = PV Cash Outflows, yrs 1 - 6 = $120,000 23,279 PV of overhaul in yr 3 = 5,208 PV of salvage value in year 6 = (2,512) TCO = $145,975 13- 14 PVA Formulas • t PVAnnuity... divided by the number of periods in one year) » • t = total number of periods PV = FV / (1 + r) t » FV = future value of single cash inflow or outflow » r = discount rate per period (annual rate divided by the number of periods in one year) » t = total number of periods 13- 15 Importance of TCO in Supply Management • Service Providers • Retail • Manufacturing • Supply Chains/Supply Networks 13- 16 Service and... drives the cost of overhead expenditures is crucial to any service business • Revenue must cover the direct costs, material and labor, and overhead in order to generate a profit » TCO analysis of recurring material costs are often overlooked and can yield great savings » TCO analysis of the labor base can reap lower per person costs, greater benefits, and improved morale » TCO analysis of equipment... of streams equals net present value of potential investment potential investment (120,000) (120,000) 27,500 27,500 22,917 22,917 13, 889 13, 889 15,914 15,914 13, 262 13, 262 13, 563 13, 563 (12,955) (12,955) Internal rate of return Internal rate of return (120,000) (120,000) 33,000 33,000 33,000 33,000 24,000 24,000 33,000 33,000 33,000 33,000 40,500 40,500 15.66% 15.66% 13- 12 TCO Formula n TCO = A + P.V... regulations of: » Foreign political/economic stability » Manufacturability » Foreign exchange risk » Infrastructure » Language/communication requirements » Outsource decision » Volatility of end-customer demand » Analysis of suppliers beyond tier one » Inventory carrying costs » Structure of foreign and domestic » Inventory risk tariffs/duties/taxes » Quality costs » Costs of delivery 13- 20 Concluding... NPV less than 0 suggests rejecting the investment NPV = 0 is the point of indifference 13- 11 Tangential Reprographics Example Tangential Reprographics Tangential Reprographics Net Present Value Analysis - -Copier Net Present Value Analysis Copier Required rate of return Required rate of return Year Year Cost of machine including Cost of machine including installation and testing (actual) installation... and parts over the lives of the investments 13- 17 Manufacturing • Manufacturers are concerned with all of the same TCO issues as service and retail firms, with some added issues • Issues that are particularly important in cost analysis for manufacturers are: » » • Direct materials Manufacturing overhead Emphasis should be placed on the variance between “should cost and actual cost » This should not...TCO, Net Present Value Analysis (NPV), and Estimated Costs • • NPV analysis is frequently incorporated into TCO analyses NPV analyzes present values of the initial expenditure along with the likely future revenue and expenditure streams • The present value of a sum of future cash flows discounted by a required rate of return » » » NPV greater than zero suggests accepting the investment . Chapter 13 Total Cost of Ownership 13- 1 Total Cost of Ownership • Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business. Estimated Costs • The Importance of Total Cost of Ownership in Supply Management » Service Providers » Retail » Manufacturing 13- 4 Three Components of Total Cost • Acquisition Costs • Ownerships Costs • Post -Ownership. Ellam, May 1999) TCO 13- 2 Key Concepts • Three Components of Total Cost » Acquisition Costs » Ownerships Costs » Post -Ownership Costs • Purchase Price: But One Component of Cost 13- 3 Key Concepts • TCO,