On Mon, 2 Jun 1997 RoyJRATC@aol.com wrote:
> In a message dated 97-05-30 12:57:43 EDT, you write:
> << Managers who know the cost of delay for each of their development projects
> include this factor in loading their people and equipment, deliberately
> allowing some slack that provides the flexibility needed to respond
> quickly. >>
> Couldn't this also be handled equally as well through out sourcing? Many of
> my customers have their own equipment (RP, machining etc) & farm work out
> when they lack either capacity or time.
> Roy Sheppard Jr.
> Atlantic Technical Components
> 269 Heather Lane
> Franklin Lakes, NJ 07417
> (201) 337-2477 FAX (201) 337-3008 Email firstname.lastname@example.org
Absolutely. Product developers who calculate and use the cost of delay
(the profit lost from being a week late on a project) use this value for
making make - buy decisions. These decisions can be for components of
their product or for development services, such as rapid prototyping, that
could be done in-house or farmed out. We call this "buying time," and
rapid developers have a budget for it.
New Product Dynamics telephone: +1 (503) 248-0900
Portland, Oregon USA fax: +1 (503) 294-1192
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