Re: Very Interesting

Posted by Rundquist from adsl-63-201-187-189.dsl.lsan03.pacbell.net on April 26, 2001 at 14:01:54:

In Reply to: Cost Accounting and the price/volume paradox... posted by Patterson on April 26, 2001 at 00:02:46:

: : It's more expensive than their A2 or G1 and Wested & US wings. Why?

: A fair question. Basically, it boils down to a few issues. How many will I sell? How much down time and set up is involved to make one? How complicated is the pattern?

: For the first question - while I love this jacket, there is absolutely no way in hell they will ever come close to selling as many of these in a year as they can move in A2's in a month. That's life. As such, the cost of developing the jacket, and direct as well as indirect overhead is spread across fewer jackets. Remember the crap they went through to develop this jacket? That was some seriously expensive payroll sitting around the table hashing things out with Lee and I. Not a few jackets were sacrificed to get to the end product.

: The second and third are really related to the basic fact that making a plain cuffed and hemmed jacket is complicated - much more so than making one with knit cuffs and hem. That knit can accommodate a wide range of sizing issues on the A2 and G1 jacket - issues that we all discussed ad naseum here on the forum. Fitting is a lot tougher with this plain cuffed design. Also, the general layouts of the panels, making the pleats function and hang right - not as simple as an A2. One of the reasons the A2 won the bid as the standard issue jacket for the Army Air Corp was because of its simplicity of design. It could be made cheaply.

: I believe the standard they are using for the Expedition is 2 man hour days to complete one, or 16 hours. Fully loaded, labor and overhead without materials? Each jacket is probably burdened with $300 of labor and overhead. I believe the A2 is about half to ž that.

: Hope this helps.

: Patterson

Follow Ups:

Post a Followup:

Name:    
E-Mail:  
Subject: 
Comments:

: : : It's more expensive than their A2 or G1 and Wested & US wings. Why?

: : A fair question.  Basically, it boils down to a few issues.  How many will I sell?  How much down time and set up is involved to make one?  How complicated is the pattern?

: : For the first question - while I love this jacket, there is absolutely no way in hell they will ever come close to selling as many of these in a year as they can move in A2's in a month.  That's life.  As such, the cost of developing the jacket, and direct as well as indirect overhead is spread across fewer jackets.  Remember the crap they went through to develop this jacket?  That was some seriously expensive payroll sitting around the table hashing things out with Lee and I.  Not a few jackets were sacrificed to get to the end product.

: : The second and third are really related to the basic fact that making a plain cuffed and hemmed jacket is complicated - much more so than making one with knit cuffs and hem.  That knit can accommodate a wide range of sizing issues on the A2 and G1 jacket - issues that we all discussed ad naseum here on the forum.  Fitting is a lot tougher with this plain cuffed design.  Also, the general layouts of the panels, making the pleats function and hang right - not as simple as an A2.  One of the reasons the A2 won the bid as the standard issue jacket for the Army Air Corp was because of its simplicity of design.  It could be made cheaply.

: : I believe the standard they are using for the Expedition is 2 man hour days to complete one, or 16 hours.  Fully loaded, labor and overhead without materials?  Each jacket is probably burdened with $300 of labor and overhead.  I believe the A2 is about half to ž that.

: : Hope this helps.

: : Patterson

Optional:

Link URL:   
Link Title: 
Image URL:

[ Follow Ups ] [ Post Followup ] [ The Indyfan Forum ] [ FAQ ]