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Sir this is a line mentioned in Part 3 technical article under Pros and Cons:
“If direct costs are more significant than indirect costs, and if the product range is narrow, the costs might outweigh the benefits of switching to ABB.”
The opposite of a narrow range of products is certainly not a vast range! 🙂
Just as I explain in my free lectures on ABC (which is the basis for ABB) the main reason for doing it is to be able to operate more efficiently and save overheads as a result. However the exercise is costly in terms of time etc., and it is only worthwhile if the savings exceed the costs.
If the overheads are less significant than the direct costs and if there are few products then it is likely that there is less of a saving to be made in the overheads and therefore it is less likely that there will be a net saving to be made by using ABB and ABC.
Have you actually watched my free lectures?
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