Developing a make or buy strategy for manufacturing business
This workbook is for companies faced with sourcing decisions. The central question to be answered by the process, is whether a specific part or family of parts should be made in-house or bought out.
The methodology is a five stage process starting with a preparation phase where the team to carry out the work, and the part(s) to be analysed, are selected. Data is then gathered by the teams in a number of areas. These divide broadly into ranking issues i.e. those areas that are most important to the company; and into comparative issues i.e. how does making the item in-house compare to having it supplied.
From the two exercises a composite picture emerges that allows the team to reach a decision.
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