Outsourcing Evaluation

I would like to do a fair evaluation of the costs involved in outsourcing PCB assembly work vs. the costs of keeping the work in-house. If anyone could recommend articles, text-books, or cost models that address this, I would be truly grateful. Please send replied to mdemos@oconee.rms.slb.com . Thanks!

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| I would like to do a fair evaluation of the costs involved in outsourcing PCB assembly work vs. the costs of keeping the work in-house. If anyone could recommend articles, text-books, or cost models that address this, I would be truly grateful. | Please send replied to mdemos@oconee.rms.slb.com . | Thanks! Mike: I clipped this from our spreadsheet model. Hope it helps get you started. Dave F Capital Assembly Testing Total

Working capital Expenses Consulting fee Engineering support Upfront assessment Part number generation Purchasing support Floor space Shop supplies Incoming freight Maintenance Operators Training Supervision Total Direct material cost Product #1 Product #2 Product #3 Total

Cost rollup PCB direct material costs Expenses Working capital cost Total Sales forecast Product #1 Product #2 Product #3 Net present value Outsourcing In-house assembly Difference in cash flow

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