Purchase and Buy Decision
The project manager or the production manager of a project has to decide whether to buy or make a part, so that it is available at the right schedule to ensure continuity in manufacturing/work process, as all these activities are highly time bound. Any delays in schedules will cause a cascading effect on overall project resulting in cost overruns. There are no universal rules applicable across projects. It varies widely from project to project.
For a manufacturing project, the factors favouring in house manufacture are as follows:
The factors favouring buy out are as follows: