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

Characteristics of research tools, CHARACTERISTICS OF RESEARCH TOOLS: ...

CHARACTERISTICS OF RESEARCH TOOLS: An ideal measuring instrument is one which results  in measures that are relevant, accurate objective, sensitive and  efficient. Measures wh

Periodical display rack-step type, Step type-Periodical Display Rack-librar...

Step type-Periodical Display Rack-library furniturein in libraray management  In this type the periodicals are displayed stepwise, each step being 5 cm deep and 15 cm high. Le

Sampling error and sampling bias, SAMPLING ERROR AND SAMPLING BIAS: Sa...

SAMPLING ERROR AND SAMPLING BIAS: Sampling error may  be  deiined  as the difference between  data obtained  from random sample and data  obtained  from  entire population.  E

Policies implemented to counteract the informal economy, QUESTION 1 Gov...

QUESTION 1 Governance had gained ground as a result of the failure of the State and how far do you agree? QUESTION 2 It is evident that a high level of informal economi

Discuss, Question 1 : Language is much more than grammar and serves va...

Question 1 : Language is much more than grammar and serves various purposes in society. Justify this statement. Question 2: One of the definitions of language is a 'sy

Reference service and literature search, Reference Service and Literature S...

Reference Service and Literature Search  A reference service, according to the A.l.A. Glossary of Library Terms, is "that phase of library work which is directly concerned wit

Define some characteristics of technology forecasting, Question 1 Describe...

Question 1 Describe the term technology. Write a short note on progression and growth of technology Question 2 Define some characteristics of technology forecasting. Describe

Retrospective survey, Retrospective Survey: In a retrospective survey,...

Retrospective Survey: In a retrospective survey, the researchers may  also like to investigate possible cause and effect relationships by  observing some existing consequences

Terminologies in library science, Relation to other Terminologies in Librar...

Relation to other Terminologies in Library Science: Classification is a vital discipline in the field of library and information science and pervadesall the other sub-fields o

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