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

Meaning of communication, Question 1 Communication is the lifeblood of...

Question 1 Communication is the lifeblood of a business organisation. Explain the role of communication in Business. What are the various barriers to communication? Meaning

Discuss crm vendors in brief, Question 1 Discuss the stages of CRM impleme...

Question 1 Discuss the stages of CRM implementation Question 2 Discuss CRM vendors in brief Question 3 The aim of BPR is to redesign and change the existing practices or

Analyze the destination life cycle concept, QUESTION The potential rele...

QUESTION The potential relevance of the concept of a destination life cycle has been examined in a number of studies. The model has apparent potential to advance theory and pra

How is strategy to be implemented, QUESTION 1- What is strategy impleme...

QUESTION 1- What is strategy implementation and what problems may arise in implementing a strategic change? 2- Who implements strategy in the organisation and how can the be

Libraries as facilitators, Libraries as Facilitators: The libraries ar...

Libraries as Facilitators: The libraries are no longer passive observers of users trying to find their ways in libraries to locate what they want and are no more considered as

Discuss the importance of having ilo standards on safety, QUESTION 1 De...

QUESTION 1 Describe the various methods that can be used at a place of work to ensure that the storage and handling of materials are carried out in an effective and efficient m

Explain the factors determining the customer satisfaction, Question A List...

Question A List the different approaches to Quality. Describe Juran's views on Quality Question D a. Explain the factors determining the customer satisfaction.

Describe the various functions and duties, Question 1: With the help of...

Question 1: With the help of an organisation chart, explain the importance of: 1. The Front Office Department 2. The Reservation Office 3. The Housekeeping Department

Non probability sampling, Non Probability Sampling: Convenient samplin...

Non Probability Sampling: Convenient sampling or accidental sampling entails the use of the most conveniently available people  as  subjects  in  the  study. Quota sampling ar

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