Tài liệu tiếng Anh (cao học) Chapter 8 The procurement of equipment

Tài liệu tiếng Anh (cao học) Chapter 8 The procurement of equipment, dành cho cao học

Key Concepts

uances of Capital Equipment Procurement

» Nonrecurring Purchases

» Nature and Size of Expenditure

* Building the Foundation

» Identify the Need for a Procurement

» Project Management

» Selection of an Equipment Sourcing Team

» Build and Train the Team

- Identify Objectives and Estimate Cost

Key Concepts

lop Specifications and Initiate

sourcing, Pricing & TCO Analysis

» Develop Specifications

» Sourcing

» Develop Updated Acquisition Cost and TCO

Estimates

» Updated Cost Estimates

» Meet Budget and TCO Objectives

» Top Management Approval

» Negotiation

Key Concepts

» Types of Leases

» Factors Favoring Leasing

» Factors Weighing Against Leasing

» To Lease or to Buy?

¢ Initiate Lease or Contract

° Post Award Activities

The Nuances of Capital Equipment Procurement

* Nonrecurring Purchases

¢- Nature and Size of Expenditure

- Price vs total life cost (TCQ)

¢ Single-purpose vs multi-purpose

- New, Used, Lease?

¢ Who should be involved in the process

supply Management's Role

Process coordinator

Consultant to management

Contract administration

Phase I: Build the Foundation

¢ Build and Train the Team

To Phase Il

Phase II: Identify Objectives and Estimate Costs

Estimating Acquisition Costs and the Total Cost

| Consider Used Equipment |

| Address Need for Spares |

Estimate Total Cost of

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ons for Purchasing Used Equipment Used Equipment

» Cost

» Availability

» Used equipment may satisfy the purchasing

need

° The Used Equipment Market

» Used equipment dealers

» Sale by owner

» Brokers

» Auctions

Used Equipment

- Cautions in Purchasing Used Equipment

» Difficult to determine the true condition

» Check the reputation of the supplier

» Inspect the equipment

» Observe the equipment under power

» Determine the age

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Estimating Acquisition Costs and the Total Cost

Life Cycle Cost Analysis

Total Cost of Ownership for Equipment

TCO = (A) + (NPV š C) - NPV S,

=| 1

A = delivered acquisition cost

NPV = net present value

C = total operating costs incurred in year |

S, = salvage value in year n

Develop Specifications and Initiate Sourcing,

- Updated Cost Estimates

- Meet Budget and TCO Objectives

- Top Management Approval

* Negotiation

Phase Ill: Develop Specifications and Initiate

Develop Updated Acquisition Cost & TCO Estimates

; Meet Budget &

Develop Updated Acquisition Cost and TCO

Estimates

Meet Bu iget and TCO Objectives?

- Top Management Approval

° Negotiation

Develop Updated Acquisition Cost and TCO

Phase IV: Sourcing Lease/Buy Analysis

and Post Award Activities

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Leased Equipment

Operating Lease

» Used by most firms to facilitate business operations

» Focus Is on operating convenience and flexibility

» Firm is usually not interested in ownership

» Most operating leases are short term

» Most often used when firm wants freedom/flexibility

Financial Lease

» Primary motivation is to obtain financial benefits

» Usually they are long 'term

» Length is usually shorter than the life of the equipment

» Many financial leases are non-cancelable

» Some argue financial leases distort the financial reports

Protection

Financial Leverage

Income Tax Considerations

— difference between lease payments and allowable depreciation can be written off

- Factors against

» Cost

» Control

» If leasing is preferable, calculate and compare

the present value costs of the two alternatives

» Make the decision

Initiate Lease or Contract

- Acceptance testing and inspection

Post-Award Activities

* Work closely with the users of the equipment to ensure that performance expectations are fulfilled

» Collect and interpret performance data

» Use techniques from the chapter on Relationship and Contract Management where applicable

Supply management personnel function as facilitators, coordinators, contract

administrators, and consultants in

procurement of equipment Specifications must be precise and complete

Economic analyses must be thorough and

accurate

Total cost of ownership analysis must be

used

Responsibilities of both the supplying and

buying firms should be established