Ad
related to: product management explained diagram examples model of service cost pricing
Search results
Results From The WOW.Com Content Network
In project management under the PRINCE2 methodology, a product breakdown structure (PBS) is a tool for analysing, documenting and communicating the outcomes of a project, and forms part of the product based planning technique.
Cost plus pricing is a cost-based method for setting the prices of goods and services. Under this approach, the direct material cost, direct labor cost, and overhead costs for a product are added up and added to a markup percentage (to create a profit margin) in order to derive the price of the product.
When combining the activities with the concepts of the product structure model it will result in a process-data diagram. This diagram displays the steps which need to be taken within the process of product structure modeling together with the deliverables, at the right side, which are outcomes of these activities.
Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [1] [2] An alternative pricing method is value-based pricing. [3]
The price of a product or service is defined as cost plus profit, whereas cost can be broken down further into direct cost and indirect cost. [1] As a business has virtually no influence on indirect cost, a cost reduction oriented cost breakdown analysis focuses rather on factors contributing to direct cost.
Service parts pricing refers to the aspect of service lifecycle management that deals with setting prices for service parts in the after-sales market. Like other streams of pricing , service parts pricing is a scientific pursuit aimed at aligning service part prices internally to be logical and consistent, and at the same time aligning them ...
The Hayes-Wheelwright matrix is a four-stage model; each stage is characterized by the management strategy implemented to exploit the manufacturing potential. In stage 1, the production process is flexible and high cost, and becomes increasingly standardize, mechanized, and automated, resulting in an inflexible and cost-efficient process.
The product flow diagram (PFD) is a representation of the order by which a sequence of products is created according to product-based planning principles. It is related to the product breakdown structure (PBS). The product flow diagram is a prescribed activity of the PRINCE2 project management methodology which mandates the use of product-based ...