By Richard G. Newman
CAPITAL gear purchasing guide Billions of bucks are spent each year on capital investments -- upgrading plant potential, paying for new know-how, protecting the previous gear. and every paying for choice is necessary and complicated. if you buy an out of date computing device or one who isn't comparatively cheap to function or one who easily can't deal with the calls for made on it ... and the monetary influence is greater than severe. it may be disastrous. Capital gear procuring guide is the largest, such a lot accomplished reference to be had to each point of the paying for method. from layout to disposal. With a specialise in collecting enter and making shrewdpermanent, built-in judgements, the guide explores sourcing * the acquisition order * negotiating * leasing * paying for used apparatus * upkeep aid * assessing overall rate of possession, and extra. RICHARD G. NEWMAN (Kansas urban, MO) is Professor Emeritus of administration at Rockhurst university and has written for plenty of nationwide organization of buying administration guides. ROBERT J. SIMKINS (Berea, KY) has 40 years undefined adventure in buying and revenues. He lately retired from his place as paying for supervisor at cloth wardrobe Industries.
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Placing too much emphasis on it will result in paying exorbitant sums to capture that latest increment of technology. Here, the marginal cost of that last increment can be very high indeed. That incremental increase in technology may be driven by other factors such as the product itself. Placement of the circuits on the chip closer to each other to reduce the travel time of the signal is going to cause the machine Page 15 designer to rethink the configuration of the machine. Is the faster transfer speed really needed, and is the cost generated by that transfer speed justifiable in the context of the final use of the product?
They become more visible when the purchase turns out to be a poor decision, based on incomplete information or faulty judgment. White elephants are not easily hidden. In terms of just the three industries selected, it is a $4-billion-dollar set of decisions, not counting the recurring costs of maintenance, spare parts, tools, and training. Add to this the associated costs of deciding to lease or buy use contract or in-house maintenance, customize the equipment, dispose of at the end of the equipment lifetime, and all the other miscellaneous factors that must be considered, and the result is a complex decision.
Capital Equipment Buying Handbook Richard G. Newman and Robert J. C. Brussels · Mexico City · Tokyo · Toronto This book is available at special discount when ordered in bulk quantities. For information, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service.