the cost of staff time cost for searching for, visiting and negotiating with suppliers represented a significant, but widely variable, per cent of the set up cost. In Company C, because of the significant value of tooling cost and cost of engineering time involved for transfer, this cost turned out to be relatively less significant. This cost was also less significant in Company F, because the company hired an agent for selecting and visiting the supplier and hence, much of the staff’s time was saved. In the survey respondent companies, the cost did not occur in two companies. In the companies where it occurred, it accounted for 16-50 per cent of the set up cost.