This book provides the business student or professional a concise guide to the creation and effective use of both internal and external cost models. Development of internal cost models is discussed with illustrations showing how they can be deployed to assist in new product development, pricing decisions, make-or-buy decisions and the identification of opportunities for internal process improvement projects. The creation and use of external cost models are discussed providing insight into how their use can drive collaborative improvement efforts among supply chain partners, better prepare for price negotiations, and keep negotiations focused on facts rather than emotions.
Victor E. Sower is a distinguished professor emeritus of operations management at Sam Houston State University (SHSU). Before entering the academic arena at SHSU, Vic worked for 18 years in a variety of manufacturing positions, including process engineer and process development engineering manager for Ampex Corp. At SHSU he taught courses in operations management, supply chain management, quality management, and technology and innovation management and established the Sower Business Technology Laboratory in the College of Business. Christopher H. Sower is director of strategic sourcing for ConocoPhillips in Houston, Texas. Prior to his employment at ConocoPhillips, Chris worked 11 years in a variety of supply chain, procurement, and management information systems (MIS) positions, including business systems analyst for Texaco, strategic sourcing analyst for ChevronTexaco, strategic sourcing specialist for ChevronTexaco, category manager for Limited Brands, and director of strategic procurement for Charming Shoppes. Chris has a BS in psychology and an MBA from Sam Houston State University.