What is this thing called Resource Distraction Value? (sidebar)

Putting a value on the process

Pw 11751 Formulas

What is the actual value of using a contract packager? First, we need to total the dollar value of the resources that were distracted from Company A. These line items don’t always appear on a general ledger. It soon becomes obvious this number will vary wildly, depending on who does the calculations.

Regardless of the method used, the number will be huge. Do your own math based on your company’s experiences. Account the value of the involved resources discussed in Company A’s approach and calculate their worth based on a significant percentage of their worth being distracted and dedicated to a non-core event.

Next, we know there is a direct cost to both Company A and Company B. For Company A, the direct cost includes additional labor, materials, equipment, space, utilities, and overtime for core staff. For Company B, the cost is merely the charge for the contract packager. Our example assumes that both work-in-progress and component costs are the same for both companies.

Assume that the direct costs wash out. That means the per-package price to produce internally when accounting only for direct labor, space, equipment, and so on, is equal to the co-pack fee. A good co-packer should be competitive with direct costs on price.

因此,对A和公司的直接成本都是相同的。公司A失去的竞争优势和市场份额失去了公司的份额,而差异是资源分心价值™。

在许多情况下,此值大于直接成本本身。发生这种情况时,可以说B公司免费外包。可以使用两个公式来表达两种情况之间的差异。(看图)

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