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July 2004

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Subject:
From:
"Kasprzak, Bill (sys) USX" <[log in to unmask]>
Reply To:
TechNet E-Mail Forum.
Date:
Fri, 16 Jul 2004 06:45:30 -0400
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Cal,

All I can say is, to measure the cost savings to be realized, there must be
unbiased analysis that considers all associated costs as part of the
equation. But for now I'd like to focus on...

"Purchasing has decided they would like to entertain off shore (Asia)"

I love this kind of thinking where the light bulb goes on over someone's
head like it's some innovative concept without doing the homework ahead of
time. If you've never done this, then you must carefully plan and study
experiences of others who have done so. As many have alluded to, language
barriers, time zone differences, overseas  trips, etc. all have intangible
costs that are frequently overlooked in the final analysis.

Hopefully someone in your purchasing department has gone down this road
before and understands all of the pitfalls. If they haven't and you're going
to decide solely on the price per board, I think you're going to be in
trouble.

My recommendation is to pick a pilot project, purchase boards in parallel
with who you're working with now and slowly evolve this process.

Good Luck.

Bill Kasprzak
Moog Inc., Systems Group, Process Engineer


-----Original Message-----
From: Cal Driscoll [mailto:[log in to unmask]]
Sent: Thursday, July 15, 2004 1:07 PM
To: [log in to unmask]
Subject: [TN] Cost of off shore (Bare board)


Hi all-

Purchasing has decided they would like to entertain off shore (Asia) quotes
for bare boards and compare them with our domestic prices. It is obvious to
me that the cheaper of the two is the direction they will proceed.

Aside from raw cost of the board alone....what other variables need to be
considered (i.e. import cost, tax, etc...).

Any experiences or input you may have would be great.

Thanks in advance,
Cal

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