Application of the cost value-technique for the AMT acquisition

The cost-value technique is shown to be a powerful method to evaluate vendors' proposals involving advanced manufacturing technologies (AMTs). This technique forces an engineering manager to analyze and arrive at the mandatory and desirable features of an AMT before an acquisition is made. As a result, the procurement decisions are made more because of the engineering needs than because of the marketing features extolled by the vendor. In addition, the cost value technique also requires assignment of values (in dollars) to the desirable attributes. This allows an engineering manager to justify AMTs based on their features, rather than their low cost.<>