Download Capital Equipment Purchasing: Optimizing the Total Cost of by Erik Hofmann, Visit Amazon's Daniel Maucher Page, search PDF

By Erik Hofmann, Visit Amazon's Daniel Maucher Page, search results, Learn about Author Central, Daniel Maucher, , Jens Hornstein, Rainer den Ouden

Compared to different major teams of procurement, capital apparatus gains a variety of features that considerably effect the deciding to buy strategy. the method of buying capital gear for this reason calls for particular consciousness and mainly a scientific method. to beat those demanding situations, a holistic strategy version and particular instruments and strategies for capital gear procuring are presented.

The following themes relating to capital apparatus buying are presented:

• Compliance management

• reductions measurement

• existence cycle expenses and overall expense of ownership

• deciding upon the optimal worthwhile lifestyles and alternative time

• actual techniques procedure for the evaluate of funding alternatives

• functionality contracting

Readers are supplied with a finished and dependent technique version for capital apparatus procuring. the great set of tools together with quite a few tools and techniques offered during this publication help the institution of a pro capital gear procuring process.

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Extra info for Capital Equipment Purchasing: Optimizing the Total Cost of CapEx Sourcing

Sample text

Irrespective of opportunistic behaviour, a multitude of other influencing factors may complicate any evaluation of the costs incurred, especially follow-up costs. g. corrosion due to salty air in maritime areas), transport costs regarding the construction of installations or long replacement periods—all of which permit only the limited comparability of historical prices with current market prices. One of these factors is the restrictions and dependencies to be taken into account in the decision for or against a component and/or a service from a specific supplier.

When two or more parties participate in an investment, different communication and information systems will also meet in this cooperation scenario. The specification and written manifestation of these systems and communication channels take into account the objective of risk minimisation in capital equipment purchasing. The construction of wind turbines generally requires that not only several investors but also service providers are involved in all partial projects and these all need to be informed about any decisions.

Cf. Götze et al.  175). 4 Connecting Cross-Sectional Activities Useful Life Expenditures (€ million) Procurement Strategy 1 1 -20 m € -20 m € Sum Total -70 m € -100 m € Net Present Value -210 m € x1 b B Revenues (€ million) III Procurement Strategy 2 1 2 0€ 0€ +70 m € +400 m € 470 m € Expenditures -100 m € (€ million) -10 m € -90 m € -20 m € -200 m € x2 c E Revenues (€ million) IV 0€ 0€ +70 m € +400 m € 470 m € Fig. 4 Weighting ….. Value Procurement Strategy 1 1 b B III Procurement Strategy 2 1 2 E c IV Fig.

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