SE-CO 2.3 ABC How the Wrong Solution can mean Higher Costs
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Make Decisions Based on value, Not Cost
How to Avoid the Cost Reduction Trap
As low-priced products from emerging economies enter the market, it can be tempting to purchase cheaper components. Unfortunately, lower prices often come with lower quality, and the up-fron reduction in prices can actually create higher total costs. In order to avoid the cost reduction trap, a manufacturer must be aware of how a new component might affect their production process and brand image.
In How the Wrong Solution can Mean Higher Costs , you will learn:
In How the Wrong Solution can Mean Higher Costs , you will learn:
- What to watch for when considering a new, lower quality component
- Where problems with lower quality components are likely to occur
- How to evaluate a component based on overall value rather than cost