Procurement FAQs

Click on a link below to access that FAQ (frequently-asked question) topic.


Procurement and Transportation Costs For Sub-Assembly Components
Product Quality Perceptions and Sub-Assembly Component Failures
Raw Materials, Set-Top Box Configurations, and Product Quality
Raw Materials Transportation Costs




Procurement and Transportation Costs For Sub-Assembly Components

“Do the costs for sub-assembly components include transportation costs?”

No, the costs of sub-assembly components do not include transportation costs. Transportation costs are additional and recorded separately, under Transportation Costs on the Corporate P&L Statement.

revised 09/09/2004
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listed under "Procurement"
listed under "Transportation"





Product Quality Perceptions and Sub-Assembly Component Failures

“Do sub-assembly component failures have anything to do with product quality perceptions?”

The answer, in short, is "yes." The perceptions that customers hold about product quality are presumably influenced by a product's configuration and by a product's intrinsic reliability (non-failure, uptime percentage, etc.).

A product's configuration represents its principal benefit to customers. Configuration is why customers purchase a particular set-top box product. A product whose configuration closely matches customers' requirements should generally be perceived as a high quality product.

Failures of sub-assembly components is a secondary factor influencing product quality perception. Sub-assembly component failure rates presumably influence product quality perceptions negatively, with higher failure rates been associated with lower product quality perception.

revised 05/11/2000
[000077.html]
listed under "Procurement"
listed under "Research Studies"





Raw Materials, Set-Top Box Configurations, and Product Quality

“What's the best level of alpha and beta to use in set-top box configurations? How do our alpha and beta levels affect the quality of our set-top box products?”

You’ll need to conduct appropriate research to assess customers’ preferences for alpha and beta in set-top boxes. Please view the following video for details.


revised 10/03/2017
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listed under "Configuration"
listed under "Definitions"
listed under "Procurement"
listed under "Product Development"
listed under "Reconfigurations"
listed under "Research Studies"





Raw Materials Transportation Costs

“Who pays for the in-bound transportation costs associated with raw materials? These transportation costs don't seem to be included anywhere in our financial reports.”

In-bound transportation costs for raw materials are paid by the raw materials suppliers.

revised 08/18/2005
[000039.html]
listed under "Financial and Operating Reports"
listed under "Procurement"
listed under "Transportation"




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