| Design Costing | Many of today’s companies purchase a
higher percentage of the final product cost from vendors than they
manufacture. By using the KAPES system and its data as a basis for
negotiation with suppliers, the cost of these parts can greatly reduced.
The system can also be used to support cost effective make or buy
decisions allowing the most efficient use of a company’s
facilities. “Companies should perform only those functions that cannot be performed more cheaply by the market.” -- Ronald Coase, Nobel prize-winner Potential Benefits: 7% of revenues KMPG (10) | ||
| Annual
Turnover Annual Profit Overhead Rate Overhead Value Product
Cost Purchase Cost |
$ | ||
| % Saving | % | $ | |
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| Total Savings | $ | ||
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