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A Method and Apparatus For Cost Opportunity Management of Outsourced Designs and Products

IP.com Disclosure Number: IPCOM000213191D
Publication Date: 2011-Dec-07
Document File: 2 page(s) / 51K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a piece of software that is used to analyze multiple Electronic Card Assembly & Test (ECAT) Bill of Materials (BOMs) at the same time for cost data, so cost opportunities can be identified in a timely fashion, using the same set of cost drivers across the board. It also analyzes the data to identify a company's disadvantage with respect to cost against competitors and suppliers to provide market intelligence for comparison of their component procurement performance.

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A Method and Apparatus For Cost Opportunity Management of Outsourced Designs and Products

In the high speed server arena, Electronic Card Assembly & Test (ECAT) currently makes up approximately 70% of the base platform spend (without hard disk drives (HDDs), Central Processing Unit (CPU), memory, etc.). Ensuring ECAT costs are at an optimum low cost is essential to prospering in a very competitive environment.

Most often cost analysis is done one card at a time in a spreadsheet and is usually compared to a single known cost standard for the components used in the assembly. Drawbacks of this approach include:


• Very time consuming. Analyzing the component cost opportunities for a single card may take a day or more each. This is especially not viable for systems that have hundreds of card assemblies comprising a high percentage of ECAT spend. In addition, if cost opportunities are analyzed monthly, it is not likely that a cost analysis for each card will be completed every month.


• Base component costs change on a monthly basis, so analyzing one card at a time could never be done by one person using the same up to date, latest cost data


• Like parts across each card should be treated the same. Running cost analysis on individual cards in different files over a long period of time would make it impossible to ensure that the same data is used for like parts across a common portfolio.


• Accuracy can and will vary over time and with different people doing the analysis


• If any comparisons to past ECAT or similar ECAT assemblies are required, then a separate piece of analysis needs to be initiated manually by bringing two or more spreadsheets together.

This invention describes a piece of software that is used to analyze multiple ECAT Bill of Materials (BOMs) at the same time for cost data, so cost opportunities can be identified in a timely fashion, using the same set of cost drivers across the board. It also analyzes the data to identify a company's disadvantage with respec...