This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Make or buy decision PPT: Learn manufacturing strategy to optimize costs and operations. Get a clear, actionable Make vs. Buy framework. Download the PPT now. Manufacturing: Make vs. Buy is a 25-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.
Internal manufacturing of a product versus procurement from external supplier sources is a difficult decision requiring careful and thorough assessment of multiple elements. The assessment includes organization's core competencies, business strategy, manufacturing strategy, internal capacity, resource limitations, demand fluctuations, time-to-market, and improved returns, among others. Top management has to negotiate the trade-offs between the make or buy alternatives.
Procurement from external sources liberates the organization's resources, cuts investment demands, increases flexibility and return on capital. However, there are associated quality and supply risks involved with this strategy. In contrast, "in-house manufacturing" employs internal capacity, absorb fixed costs, and safeguard intellectual property. Nevertheless, the "make" approach entails unwarranted complexities, and avert resources and focus away from more important strategic priorities.
This PowerPoint presentation on Manufacturing Strategy provides a comprehensive framework to help organizational leadership answer the make vs. buy question by evaluating their manufacturing network and strategies, developing an assessment criteria, detailed implementation process, and tactics for executing the framework.
There are 6 broad assessments to evaluate when making the make vs. buy decision:
1. Manufacturing Strategy compatibility – Does the product fit within our Manufacturing Strategy?
2. Total delivered costs – How do internal costs compare with third-party alternatives?
3. Capacity – Is there available or potential plant capacity for in-house manufacturing?
4. Intellectual Property exposure risk – What is the Intellectual Property risk of buying a product?
5. Business Case development – What is the Business Case for making vs. buying a product?
6. Contract manufacturers availability – Are there actually contract manufacturers available to make the product?
This framework also breaks down the 6 attributes to enable a successful make-or-buy process. These attributes allow for a company to establish a workable and consistent make-or-buy process.
The Manufacturing Strategy PPT also includes some slide templates that depict the 4 Manufacturing Categories and Make vs. Buy Assessment Criteria for you to use in your own business presentations.
The presentation categorizes manufacturing operations into core, supporting, secondary, and marginal, providing a structured approach to decision-making. It also includes templates for assessing strategic value and performance, aiding in the practical application of the framework.
This PPT slide categorizes manufacturing operations into 4 types: Core, Supporting, Secondary, and Marginal, enhancing the make-or-buy decision-making process for resource allocation and operational efficiency. Core operations are the backbone of the network, possessing high strategic value and performance essential for sustainable growth. Supporting operations complement core functions, but have lower strategic value, with potential for future reclassification. Secondary operations exhibit low performance and strategic value, often candidates for divestiture unless improved. Marginal operations, characterized by poor performance and low strategic value, should be rationalized swiftly to optimize resources. Regular reassessment of the manufacturing network is necessary to align with evolving business environments.
Leading organizations enhance their make-or-buy decision-making through several key attributes. "Clearly Defined Roles and Responsibilities" establish accountability among team members, streamlining communication. "An Effective Manufacturing Strategy" aligns manufacturing capabilities with business objectives, influencing cost-effectiveness and quality control. "Identification and Endorsement of Capable 3rd Party Manufacturers" emphasizes the need to vet external partners to meet quality and delivery standards. "Cost Transparency" ensures organizations understand all costs associated with making versus buying, aiding informed decision-making. Evaluating different "Business Models" impacts make-or-buy choices, while "Recurrent Review of Decisions" highlights the necessity of continuous evaluation to adapt to market changes and organizational goals. These attributes form a robust framework for effective make-or-buy decisions.
This PPT slide outlines critical assessments for the make-or-buy decision in manufacturing. Key factors include evaluating product compatibility with existing manufacturing strategies, assessing facilities, technologies, processes, and materials against predefined standards. If a product does not meet these standards, external sourcing should be considered. A cost analysis is essential to determine the economic viability of in-house production, prompting a reassessment of the manufacturing strategy if necessary. Additional assessments involve capacity, intellectual property exposure risk, business case development, and availability of contract manufacturers. A tailored approach to these assessments can guide informed decision-making aligned with strategic objectives.
This PPT slide outlines 3 critical attributes for a successful make-or-buy decision process. Cost Transparency emphasizes thorough cost comparisons between internal and external manufacturing options, including internal conversion costs such as fixed costs, logistics, testing, and quality assurance. Business Models highlight how leading firms utilize business case models for accurate forecasts, incorporating strategic assessments, project plans, risk evaluations, and financial analyses. Recurrent Review of Decisions stresses the need for ongoing evaluations of analyses and environmental factors, advocating for regular reassessment of make-or-buy decisions when established thresholds are crossed. This proactive approach enables organizations to remain agile in shifting market dynamics.
The framework categorizes manufacturing network operations using a two-dimensional matrix with "Manufacturing strategic value" on the vertical axis and "Performance" on the horizontal axis, divided into 4 categories: Core, Supporting, Secondary, and Marginal. The Core category signifies operations with high strategic value and performance, critical for network success and requiring prioritization for investment. Supporting operations also hold high strategic value, but may need enhancements for optimal performance. The Secondary category includes operations with moderate performance and low strategic value, contributing to overall operations, but not essential. The Marginal category represents low strategic value and performance operations, which should be evaluated for divestment or restructuring. This structured approach aids decision-making regarding resource allocation and aligns manufacturing strategies with business objectives.
Source: Best Practices in Manufacturing PowerPoint Slides: Manufacturing Strategy: Make vs. Buy PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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