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

Quality control tools, Q uality control tools Most of the quality cont...

Q uality control tools Most of the quality control tools are usually available to the project team. The Quality control methods are ways of checking. It may involve the applic

Public procurement management, A Public Body has conducted a bidding exe...

A Public Body has conducted a bidding exercise through the Restricted Bidding Method for the procurement of five PCs, five laser printers, two UPS and one scanner. Bidders were

Information generation process, INFORMATION GENERATION PROCESS: Inform...

INFORMATION GENERATION PROCESS: Information is the product of different human activities and events. Activities are undertaken by individuals or by organisations in pursuance

Explain the functions of the management, Question 1 How is a cable televis...

Question 1 How is a cable television system organized? Explain Question 2 Discuss the ethical issues in media management Question 3 What are the major design steps of a

Differentiate between planned change and unplanned change, Question: Fo...

Question: Forces for change exist in the external and the internal environments of the organisation. (a) Differentiate between planned change and unplanned change. (b)

Gilding and hollow backs - binding processes, Gilding:   Gilding or co...

Gilding:   Gilding or colouring edges may be done either at the time of trimming the edges or after cutting the boards. The purpose of gilding or colouring is primarily or prot

Hpothesis, consider the use of metal detector in air port to test people fo...

consider the use of metal detector in air port to test people for concealed weapon .in essence his is a form of hpothesis testing

Introduction to resource sharing network, Introduction to Resource Sharing ...

Introduction to Resource Sharing Network The term 'network' always has a wide range of meanings in everyday life and this situation is further complicated because it has two v

Record-keeping equipment -library equipment , Record-keeping Equipment -LIB...

Record-keeping Equipment -LIBRARY EQUIPMENT - LIBRARY MANAGEMENT Record-keeping equipment in the library is mainly used for keeping records of periodicals-current issues as th

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