

Both designs reduce direct materials and direct labor content over the current model.

Suppose that engineers are considering two new product designs for one of its power tools. An Example: Suppose that the Thompson Company produces precision parts for 11 major buyers.

The data of the new design and its effects on demand are given below: Current Expected Activity Cost Driver Capacity Demand Demand Material usage # of parts 200,000 200,000 80,000 Labor usage Labor hours 10,000 10,000 5,000 Purchasing # of orders 15,000 12,500 6,500 Warranty repair # of defects 1,000 800 500. They plan to reduce the price by per-unit savings. An Example: Assume that design engineers have been told that the number of parts is a significant cost driver and that reducing the number of parts will reduce the demand for various activities downstream in the value chain. Proses bisnis adalah serangkaian tahapan yang harus dilakukan untuk menjalankan tugas-tugas dalam dalam suatu bisnis. Dalam PR suatu proses bisnis diplot dalam sebuah diagram secara detail, dikritik dan kemudian dirancang ulang untuk menghilangkan langkah-langkah yang tidak diperlukan, mengurangi kemungkinan terjadinya kesalahan dan mengurangi biaya.
