Cost Avoidance Defined

Cost Avoidance is the calculation of unplanned costs which would have been required if proactive or strategic Diminishing Manufacturing Sources and Material Shortages (DMSMS) management was not in place to solve an issue. Cost Avoidance is used to assist with planning future DMSMS funding needs.

Resolution Types

ACCESS

To PCNs, Crosses, and a list of BOMs containing the part with the issue.

TRACK

DMSMS issues and capture/calculate the cost avoidance of issues.

SET DEFAULTS

Costs for each resolution type; however, those costs can be overwritten with actual costs.

REPORTING

And rollups, for totals, by resolution type, and by year.