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Richard G. Newman - Capital Equipment Buying Handbook

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CAPITAL EQUIPMENT BUYING HANDBOOK Billions of dollars are spent every year on capital investments -- upgrading plant capacity, purchasing new technology, maintaining the old equipment. And each buying decision is critical and complex. If you purchase an obsolete machine or one that is not cost-effective to operate or one that simply can not handle the demands made on it ... and the financial impact is more than serious. It can be disastrous. Capital Equipment Buying Handbook is the biggest, most comprehensive reference available to every aspect of the buying process. from design to disposal. With a focus on gathering input and making smart, integrated decisions, the handbook explores sourcing * the purchase order * negotiating * leasing * buying used equipment * maintenance support * assessing total cost of ownership, and more. RICHARD G. NEWMAN (Kansas City, MO) is Professor Emeritus of Management at Rockhurst College and has written for many National Association of Purchasing Management publications. ROBERT J. SIMKINS (Berea, KY) has forty years of professional experience in purchasing and sales. He recently retired from his position as purchasing manager at Dresser Industries.

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title Capital Equipment Buying Handbook author Newman Richard G - photo 1

title:Capital Equipment Buying Handbook
author:Newman, Richard G.; Simkins, Robert J.
publisher:AMACOM Books
isbn10 | asin:0814403697
print isbn13:9780814403693
ebook isbn13:9780585026732
language:English
subjectIndustrial procurement.
publication date:1998
lcc:HD39.5.N482 1998eb
ddc:658.7/2
subject:Industrial procurement.
Capital Equipment Buying Handbook
Richard G. Newman and Robert J. Simkins
AMACOM
American Management Association
New York Atlanta Boston Chicago Kansas City San Francisco Washington, D.C.
Brussels Mexico City Tokyo Toronto
This book is available at special discount when ordered in bulk quantities. For information, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Newman, Richard G.
Capital equipment buying handbook / Richard G. Newman and Robert J. Simkins.
p. cm.
Includes bibliographical references and index.
ISBN 0-8144-0369-7
1. Industrial procurement.Picture 2I. Simkins, Robert J.Picture 3II. Title.
HD39.5.N482Picture 41998
658.7'2dc21Picture 5Picture 6Picture 7Picture 8Picture 9Picture 1097-45962
Picture 11Picture 12Picture 13Picture 14Picture 15Picture 16Picture 17CIP
1998 Richard G. Newman and Robert J. Simkins.
All rights reserved.
Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.
Printing number 10987654321
10 9 8 7 6 5 4 3 2 1
Page v
Contents
List of Exhibits
vii
Preface
ix
Acknowledgments
xi
1.Overview of the Field
1
2.Putting Together the Appropriation Request
24
3.The Financial Dimensions of the Capital Equipment Decision
49
4.Sourcing New Capital Equipment
98
5.The Purchase Order
124
6.Negotiating the Purchase
148
7.Leasing Capital Equipment
170
8.Buying Previously Owned Equipment
203
9.Spare Parts and Maintenance Support of the Equipment
229
10.Pricing of Capital Equipment
261
11.Total Cost of Ownership
286
12.Controlling the Acquisition of Capital Equipment
316
13.Some Closing Observations
362
Appendix A.Process Capability Index: An Overview
377
Appendix B.Reliability Analysis
385
Appendix C. Collecting Relevant Data on Prices From the Internet
393
Appendix D.Discounting Values for Select Interest Rates
397
Page vi
Appendix E.Area Under the Normal Curve
400
Appendix F.Some Useful Web Sites
403
Appendix G.Selected Bibliography
Next page
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