Five page paper, double spaced, 12 Font, TNR. It needs to have images, graphs, and info from the attached excel (don’t count toward the 5 pages). This may be time consuming so please try to start it right away and don’t hesitate to ask any questions.
This paper involves an excel assignment. Please don’t bid before looking at the attached excel file.
Part Teardown Exercise – The Computer Mouse
Situation:You are a buyer at a major computer manufacturing company.Having recently been hired after graduating from the prestigious WSU Supply Chain Management program, your management has decided to let you lead your own sourcing package in order to demonstrate your purchasing abilities.You have been assigned to work in a team.The product you have been tasked to source is the computer mouse.Recently technological innovations have rendered the traditional mechanical mouse with the rolling ball underneath obsolete.The new technology is the optical mouse.Your organization does not know how much the new optical mouse will cost and has therefore asked you to run a sourcing package in order to find out the new market price and identify a recommended supplier to partner with.
The current supplier of the mechanical version of the mouse has been an excellent supplier in the past and has gone out of their way to try to win the business for the new optical versions.In fact they have even given you a prototype sample to demonstrate the maturity of their development process.The supplier will be providing you with a quotation for the product using the standard piece price breakdown form at a later date.
Task: Your task is to get ahead of the curve and develop your own price analysis of what the part should cost. You will do this by taking apart the prototype mouse down to the component level and building up your own price breakdown sheet that you will be able to use in price negotiations with the supplier.
( I found a link which could give you some idea as to how this may work: https://www.myeducator.com/reader/web/908a/topic10…)
Traditionally, suppliers are less than complete in their piece price breakdowns, choosing to lump together numerous cost components in order to inhibit full visibility into component pricing. You however, cannot do this, but must estimate costs down the component level of purchase for your supplier.In other words, the paper label on the bottom side of the mouse must be a separate line item, just as each screw, resistor, capacitor and microprocessor, to name a few items, should also be separate line items.You will use your company’s standard quoting template / piece price breakdown form for all parts.
Volume Assumptions:100,000 units per year for 3 years
Use a standard Dell Computer Mouse. Please be specific about the mouse parts. (I mean very specific. List everything you can think of, even the smallest parts that are used to make the mouse, don’t forget the interior along with the exterior i.e the plastic used to bulit it, wire etc) Look at the attached excel for price breakdown template which needs to be in the paper.
The paper should have the information below and whatever else you think is necessary
Executive summary: Overview of the whole paper
Supplier Quotation
Team estimate: Insert copy of breakdown here for example, (excel)
Material: Labor:Burden:Etc….Total:
Table here comparing supplier quote to your estimate. Highlight the discrepancies as “opportunities” for improvement on quotation
Details of each component
Mouse Cover
Material:ABS
Weight: 0.05kg
Per Piece Material Cost: $2.00/kg * 0.05kg = $0.10
Price estimate source: http://www.icis.com/v2/chemicals/9071045/acrylonit…
Painting and Printing Logo: $0.20
Estimated Tooling Cost: US$50,000 (capacity 100,000 units per year)
Per Piece Tooling Cost: US$0.10
Total Estimated Piece Cost: $0.40
Quoted Piece Cost: $0.90
Opportunity: $0.50
NOTE:I MADE UP THESE NUMBERS – DO NOT INTERPRET AS ACTUAL FIGURES
Summary of the paper : Total up the opportunity and document what you feel the quoted price should reduce to….. This will “kick off” negotiations with the supplier
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