Assessing Manufacturing Compatibility: Make vs. Buy PPT

This PPT slide, part of the 25-slide Manufacturing Strategy: Make vs. Buy PowerPoint presentation, outlines critical assessments for determining whether to manufacture a product in-house or outsource it. The primary focus is on the compatibility of a product with the firm's existing manufacturing strategy. It emphasizes that many companies opt for in-house production based solely on their current capacity, which can lead to suboptimal decisions. A thorough evaluation of the facilities, technologies, processes, and materials required for in-house manufacturing is essential. This evaluation should be conducted against predefined standards to ensure that the product aligns with the firm's capabilities.

If the product does not meet these standards, the recommendation is to consider external sourcing. The slide also highlights the importance of a cost analysis in this decision-making process. This analysis serves as a practical check on the feasibility of the manufacturing strategy. If the cost analysis indicates that in-house production is not economically viable, the existing strategy must be reassessed.

Additional assessments listed include capacity, intellectual property exposure risk, business case development, and the availability of contract manufacturers. Each of these factors plays a role in the overall decision-making framework. The slide concludes with a note that not all assessments may be necessary for every company, suggesting a tailored approach to the make-or-buy decision. This nuanced understanding of the assessments can guide executives in making informed choices that align with their strategic objectives.

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Manufacturing Make or Buy Cost Analysis Business Case Development Business Case Production