Your task is to develop your own price analysis of what computer mouse parts should cost. You will do this by taking apart the prototypeDell wired computer 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.
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 (so basically have a breakdown for all mouse piece parts and their cost, the picture below shows some of the parts that may be helpful.
You want to make sure your prices are cheaper than the suppliers quote which can be found in the attached excel). You will use your company’s standard quoting template / piece price breakdown form for all parts. Use Dell wired computer mouse for the sample.
Volume Assumptions: 100,000 units per year for 3 years
Result: Once you have developed your own piece price breakdown (part A) you will then compare it to the supplier’s quote submission (attached). In part B and you will prepare a presentation to the supplier on the accuracy (or not) of their submitted quote. Separately on a word doc briefly explain how you calculated everything so it makes sense.
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