Precision costs more money, but does not always guarantee better performance. Exotic materials cost more money, but do not guarantee better performance. There are also costs associated with R&D that are defrayed over the total expected run of a product. A lot of high dollar items sell fewer units, but have a lot more R&D costs. The scrap costs may also be higher because the finish standards are more stringent and the materials scrapped cast more. Not everything that makes that product more expensive may be important to you, but you’ll still have to pay for it as part of the package. You can arrive at any conclusion of relative worth simply by weighting the selection criteria a certain way. As a value proposition the more expensive item is rarely preferable. This falls in with diminishing returns. However, sometimes the performance aspired to is not a logistical problem that can be optimized economically, but a conceptual problem instead. “Can this be done?” rather than “What’s the most efficient method to reach a specific result?” Most of our systems are well within the realm of logistics and compromises or trade offs based on economics. But those systems unconstrained by conventional limitations are fascinating to read about.
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- 153 posts total
- 153 posts total