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.
To PCNs, Crosses, and a list of BOMs containing the part with the issue.
DMSMS issues and capture/calculate the cost avoidance of issues.
Costs for each resolution type; however, those costs can be overwritten with actual costs.
And rollups, for totals, by resolution type, and by year.