MIL-HDBK-9660B
k. Plan for the impact on maintaining and updating data. Determine the process needed to update. Evaluate redistribution approaches.
l. Evaluate any similar products. Determine any advantages and disadvantages.
m. Develop an investment strategy based upon a cost and benefit analysis, comparing CD-ROM
dissemination of information with the use of paper medium for distribution.
5.2.3.1 Commercial CD-ROM Replication Versus Local Production Break-Even Analysis Tool. When many copies of a CD-ROM are to be produced, one decision to be made is whether to produce CD-ROMs locally (in-house) using one-off machines or to contract the job to a CD-ROM replication company. If time is critical, local one-off production may be the only satisfactory alternative (although one-day turnaround can be obtained from a production vendor). If there is time to have a company replicate the CD-ROM, however, the prime consideration becomes cost. The following tool is provided to identify the crossover point (number of CD-ROMs) at which it becomes less expensive to use a CD- ROM replication company. If a CD-ROM production run is below the crossover point, it costs less to produce them locally; if higher than the crossover point, it costs less to have them produced by a CD- ROM replication company. For the purpose of this equation/example, it is assumed that the producer currently has the capability in-house to produce.
The price charged by a CD-ROM replication company is divided into two categories: fixed price and variable price. The fixed price is the same regardless of how many CDs are produced. The variable price is equal to the number of CD-ROMs produced times the total "per CD-ROM" price. The CD-ROM replication company may identify just the total fixed price and the total "per CD-ROM" price or it may itemize the prices. If itemized, you will need to identify fixed prices and the "per CD-ROM" prices. The
fixed price is the total of the fixed price components for a production run. The "per CD-ROM" price is the composite of the "per CD-ROM" price components.
Many replication companies have block rates; for example, one rate for up to 2,000 CD-ROM discs and another rate for 2,000-5,000 which permits greater volume discounts. This analysis will need to be accomplished for each block.
The following equations are used to determine the CD-ROM break-even number. If the planned production run is larger than the break-even number, the production can be contracted to a CD-ROM replication company. If it is less, the CD-ROMs can be produced locally as one-offs.
Break-even # = FcC/(ADo - Pdc)
Break-even # = ((1 + S) x FcC)/(ADo - ((1 + S) x Pdc))) (when a surcharge is applied)
FcC - Fixed charges, Commercial: This is the total of one-time fixed costs charged by the CD-ROM replication company. Fixed costs include the substantial "start up" costs associated with developing a CD-ROM template (glass master and metal press). It may also include a single charge for etching sequential numbers (serialization) on every disc.
Pdc - Per Disc Charge, Commercial: This is the CD-ROM replication company charge for each CD-ROM
produced. It may be provided as a total or may be calculated by adding the following together:
- Charge per disc
- Charge for serialization per disc (may be fixed)
- Charge for printing each included booklet
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