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

Control of contracts, C ontrol of contracts The contract control proce...

C ontrol of contracts The contract control process commences right at the beginning stage of bid document preparation inviting contractors to bid, and proceeds through the con

Human resource development , HUMAN RESOURCE DEVELOPMENT  OBJECTIVES ...

HUMAN RESOURCE DEVELOPMENT  OBJECTIVES Human resources constitute the most important of all resources of any organization. Attention to managing and modulating this resource

Describe carefully the forms of organizational culture, QUESTION 1 (a) ...

QUESTION 1 (a) What is an organization? (b) What is management? (c) Describe carefully the functions of managers in organizations QUESTION 2 Organisations are com

Identify the organizational sources of resistance to change, QUESTION 1 ...

QUESTION 1 Explain Intra-individual conflict with appropriate examples. QUESTION 2 Persons seeking compliance use certain tactics designed to tip the balance in their f

Catalogue as a search tool, Catalogue as a Search Tool   Remember that ...

Catalogue as a Search Tool   Remember that not often can we recollect all particulars of a document like author, title, subject, series, etc., when we search for it. Further, w

Charging desk -circulation area in library building, Charging Desk -Circula...

Charging Desk -Circulation Area in library building This is the key functional area of the library and a great deal of  thought should be given to its location, size and shape

Entrepreneurship, #question. I want detailed information about entrepreneur...

#question. I want detailed information about entrepreneurship.

Illustrate the concept of news worthiness, a) Define "news" and illustrate...

a) Define "news" and illustrate the concept of "news worthiness" in the field of PR. b) Describe how PR is distinguished from i. Advertising ii. Marketing iii. Sales pr

Development of resource sharing networks in india, Development of Resource ...

Development of Resource Sharing Networks in India   In the foregoing sections of this Unit, we have discussed major factors associated with networking. We attempted to understa

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