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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:
Agreements The first agreement, obviously is the agreement to share currently owned materials (that is, to permit access to the holdings among partners), with protocols, limit
what is informal communication
factors influencing demand
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