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Cost Effect of Uniquely Designed Component Choices Over the Product Life of a Workstation

Updated: 26-Feb-97

Student: Anne Di Censo
Companies: HP
Advisor: Larry Wein
John Tsitsiklis
Contact Info: (508)-231-1017
mitadicens@aol.com
Organization: MIT Leaders for Manufacturing
Address: 49 Brimstone Way
Ashland, MA 01721

Project Goals

Traditionally, the workstation business has found competitive advantage through its use of internally produced, unique components which optimize product performance due to component interplay. By taking as an example one recently released configuration of a mid-range workstation product, material costs, infrastructure costs, and other costs that permeate the supply chain are examined to determine the impact of such choices on supply chain costs and break-even revenue. By tracing the cost impact of internally designed components, especially where industry standard component choices could have been made, we can determine an estimate of the complete cost implications as opposed to material cost alone.

Project Progress

Data collection and modeling for the project have been completed. A slide presentation outlining the results of the project is available. Current work includes thesis creation.

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