T-generators and Critical Resources—Two New Required Terms
Eli Schragenheim, Henry Camp, Rocco Surace · Productivity Press eBooks · 2019
The basic structure of a T-generator is a list of its raw materials and their quantities to the unit. Every T-generator also needs a price tag. Sometimes there is a need to consider additional truly variable costs (TVC) that are required by the T-generator, such as the TVC of special packaging required by the T-generator or the cost of additional services, such as home delivery and installation. A product can be a part of many T-generators. Each T-generator may include many different products and related services. The sales profile consists of all the T-generators and their forecasted sales for the time horizon over which the new opportunities to be considered are going to be analyzed. Emphasizing an interest in new T-generators as a method for price differentiation and their impact on the capacity of the key resources can encourage the flow of new ideas from employees, especially from marketing and sales people.