所有权的总成本一个关键的概念战略成本管理的决定外文翻译已处理.docx

1、所有权的总成本一个关键的概念战略成本管理的决定外文翻译已处理所有权的总成本：一个关键的概念，战略成本管理的决定外文翻译 外文文献翻译译文一、外文原文原文:Total cost of ownership: a key concept in strategic cost management decisions Strategic cost management is not a new concept in theory. In application, however, it presents major opportunities for decision-making improvemen

2、ts for most organizations. As described by Shank and Govindarajan. strategic cost management takes a broad view of the organizations costs, both internal and external in such a way as to enhance competitive advantage. Much of the literature on strategic cost management has approached it from a finan

3、cial or accounting perspective. This is logical, since those functions of the organization often have fiduciary responsibility for cost control. In many organizations, however, it is the supply management area, also referred to as purchasing, procurement, sourcing. or a number of other names, that h

4、as the ultimate responsibility for controlling the bulk of the organizations expenditures. A recent study indicates that purchased items make up an average of 63.5% of total costs for manufacturing firms and 25% for nonmanufacturers. Such expenditures are directly related to the organizations costs,

5、 but many discussions of strategic cost management concepts focus primarily on control of manufacturing costs, such as labor and machine time. In most organizations, the costs of purchased materials and services far outweigh internal manufacturing costs This article has several purposes. It begins w

6、ith an exploration of the concept of total cost of ownership TCO and why it is an increasingly viable model for use in acquisition decisions today. Second, a review of the TCO literature as it applies to purchasing decisions is presented. Next, the relationship between strategic cost management and

7、TCO analysis in purchasing decisions is explored. Case studies of eleven organizations that apply TCO concepts to their purchasing decisions are used to overview how and where TCO models are currently being applied. Based on those data and previous research, evidence is presented as to why TCO conce

8、pts are not more widely implemented. Managerial/strategic suggestions are presented for overcoming barriers to applying TCO in purchasing and for linking TCO to strategic cost management concepts. The paper closes with suggestions for future research. TCO is a purchasing tool and philosophy aimed at

9、 understanding the relevant cost of buying a particular good or service from a particular supplier. References to TCO and related concepts, such as life cycle cost analysis, have been in the literature for some time, but its practical application has been somewhat limited. TCO is an important tool t

10、o support strategic cost management. It is a complex approach that requires the buying firm to determine which costs it considers most relevant or significant in the acquisition, possession, use, and subsequent disposition of a good or service. In addition to the price paid for the item, TCO may inc

11、lude the costs incurred by purchasing for order placement, research and qualification of suppliers, transportation, receiving, inspection, rejection, storage, and disposalReview of the literature One use of TCO analysis is to support the supplier selection and evaluation decision. Traditional approa

12、ches include selecting and retaining a supplier based on price alone, or based primarily on price. or qualitatively evaluating the suppliers performance using categorical or weighted point/matrix approaches. While the latter arc preferred to a price only focus, such approaches tend to deemphasize th

13、e costs associated with all aspects of a suppliers performance and generally disregard internal costs. Examination of such costs is a strength of the TCO approach.TCO Analysis Selection and evaluation concepts closely aligned with TCO include life-cycle costing, zero-base pricing, all-in-costs, cost

14、-based supplier performance evaluation. and the cost-ratio method, None of these approaches have received significant, widespread support in the literature or in practice for a variety of reasons, primarily because of their complexity and the lack of general understanding of the concepts. Life-cycle

15、 costing focuses primarily on capital or fixed assets, The aim is to go beyond the purchase price of an asset, to determine how much it actually costs the organization to use, maintain, and dispose of that asset during its lifetime. Pre transaction costs tend to be de-emphasized. This approach is co

16、ngruent with TCO but is only a subset of TCO activity. TCO is applicable to virtually every type of purchase and includes the pre purchase costs associated with a particular supplier. Zero-base pricing and cost-based supplier performance evaluation both advocate understanding suppliers total costs.

17、In contrast to TCO, zero-base pricing focuses heavily on the suppliers pricing structure and cost of doing business. Cost-based supplier performance evaluation has a narrower scope than TCO, focusing primarily on the external costs of doing business with a supplier rather than considering both the i

18、nternal and external costs. More recently, several articles have focused specifically on TCO. Handfield and Pannesi explore understanding TCO specifically for components. They note that TCO components issues are directly related to where the component is within its life cycle, which may not be relat

19、ed to the overall product life cycle. Carr and Ittner overview TCO approaches used by several organizations. The models they present are all modified versions of the cost-ratio method. Using that method, an organization usually identifies several key factors or activities that increase costs. Factor

20、s such as those resulting from poor quality and late delivery are added to the total purchase price. Dividing these total costs by the total purchase price yields an index. This index is then used as a multiple for future bids/prices from thesupplier to evaluate the true total cost of ownership of d

21、oing business with that supplier. Ellram and Siferd developed a conceptual framework for costs to be included in TCO analysis, Ellram used case studies of organizations that have used formal TCO analysis to develop a framework for TCO implementation. Ellram also developed a taxonomy for classifying

22、TCO models based on the type of buy, also known as buy class. and according to whether the TCO model is standard or unique. Bennett presents a TCO approach used by Compumotor, a manufacturer of flow control equipment. Compumotor links TCO to its activity-based costing system to provide an integrated

23、 approach to TCO analysis. Approaches similar to TCO in purchasing have been advocated in the logistics literature and strategic management literature. These approaches are a means of understanding total costs throughout the supply chain in order to provide direct support for strategic cost manageme

24、nt efforts. Lack of understanding of TCO can be very costly to the firm. Poor decisions will likely result, hurting the firms overall competitiveness, profitability, pricing decisions, and product mix strategies.Theoretical Roots Economists have long acknowledged the importance of going beyond price

25、 to encompass the transaction costs in purchasing from external sources. Economists have focused on transaction cost analysis primarily from a make-or-buy perspective, considering vertical integration versus buying goods or services in the market. Transaction costs analysis is also the foundation of

26、 TCO analysis While TCO analysis can be applied to the analysis of the make-or-buy decision, it should also be applied after an organization has determined that it will use a third party buy rather than use an internal source make. Transaction costs can vary significantly among suppliers and can be

27、an important decision factor Previous literature on TCO analysis defined transaction costs as costs incurred prior to actual sale; associated with the sale, including price; and after the sale has occurred, including disposal. From this perspective, transaction cost analysis in the economics literat

28、ure provides the theoretical basis for further examining TCO analysis. TCO analysis is the tool and philosophy to support the theory of transaction cost analysis.When TCO Is Strategic Cost Management It can be argued that TCO is only truly strategic cost management when it occurs on a strategic leve

29、l, as in helping to Improve the processes in the organization or the supply chain. In order for TCO analysis to qualify as strategic cost management, cost considerations must span the boundaries of the organization to include costs both external and internal to the organization. By definition, all a

30、pplications of TCO analysis do this by specifically considering the effects of the suppliers performance, and the performance of purchased goods or services, on the organizations total costs. Unlike traditional cost reduction and cost savings techniques, which focus internally. All TCO analysis is s

31、upportive of strategic cost management. That is because all TCO analysis considers the broad effect of purchase decisions on the organizations costs, as well as the implications of purchase decisions on other cost parameters.How TCO Models Support Strategic Cost Management According to Shank and Gov

32、indarajan, three key themes are blended in strategic cost management: value chain analysis, strategic positioning analysis, and cost driver analysis. Each is discussed briefly below, as related to TCO analysis. The value chain analysis concept is quite similar to the supply chain management concept

33、discussed in the purchasing and logistics literature. Simply stated, the value chain framework requires that an organization consider all activities in which it engages that are required to produce the product or serve ice and provide it to the ultimate consumer. This focus is external, considering all activities, which