Purchase and buy decision , Other Management

Assignment Help:

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: 

  •   In house cost less than supplier cost 
  •   Capacity utilisation in house in terms of machine hours and man-hours. 
  •   To retain process confidentiality. 
  •   To retain high level of quality. 
  •   To keep up schedules particularly if long process cycles are involved post this part. 

The factors favouring buy out are as follows: 

  •   Elimination of capital expenditure. 
  •   Utilisation of specialist facility. 
  •   Lesser buy out costs than in house cost. 
  •   Focus on one?s own area of specialisation.  

Related Discussions:- Purchase and buy decision

Explain communities of practice, Question 1 Discuss the various tools used...

Question 1 Discuss the various tools used for understanding data Question 2 Write short notes on The Enterprise Project Management Model Question 3 Explain communities o

Event management problem, In the early October, Gaetan Ah Kong, the owner o...

In the early October, Gaetan Ah Kong, the owner of Chez Gaetan catering company, came into the service manager's office beaming. "We got the MUT party", he said enthusiastically wh

Team work -preliminary considerations of library building, Team Work -Preli...

Team Work -Preliminary Considerations of Library building Planning a library building is a team work: The team consists of the library authority or the management committee, t

Types of sampling, TYPES OF SAMPLING: Sampling plans can be  grouped u...

TYPES OF SAMPLING: Sampling plans can be  grouped under two categories-probability  sampling and non-probability sampling. Probability sampling uses a technique by which the r

Advantages of an enterprise project management system, A d v antages of ...

A d v antages of an EPM System Let us now see some of the advantages of EPM are: One of the key rewards of converting to an EPM system is that projects have superior

Direct contracting, Direct contracting is another procurement method that ...

Direct contracting is another procurement method that is used under a limited number of exceptional circumstances. In Direct contracting method, contract for works or supply is ma

Pre-requisites for a union catalogue, Pre-requisites for a Union Catalogue ...

Pre-requisites for a Union Catalogue   Compilation of a union catalogue is possible only through library cooperation. Any such compilation should be very clear in the beginning

Top level management & stakeholder involvement in six sigma, T op level ma...

T op level management commitment and stakeholder involvement -  Six   sigma   involves   top   level   management commitment as well as stakeholder involvement. Let us go into det

Internet, What is Internet? There are many ways to answer this questi...

What is Internet? There are many ways to answer this question and how you choose to answer is really a matter of how you use it. To some people, it is a source of entertainme

Describe risk as per the public private partnership guidance, QUESTION ...

QUESTION 1) Describe risk as per the Public Private Partnership Guidance Manual 2) What are the primary objectives of transferring risks from a contracting authority to a pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd