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What does Make or Buy Analysis mean?

• *Process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product.  

 

• Analysis should include: ◦ Both indirect and direct costs ◦ Prospective as well as the immediate needs of the performing organization.  

 

    For example: 

 

• Whether a capital goods item can be used for other current or future projects of the organization (ongoing need of the item) • Additional capacity is available for use within the organization • Proprietary or business critical activity, which is core business for the company (e.g., designing of chips in a chip manufacturing company) 

 

• Available contract types should also be considered during the buy analysis. 

© 

 

International trainer ENG . Hassan Shalaby

 

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Question ajoutée par hassan shalaby , اخصائي تسويق ومبيعات، ومدرب مهارات معتمد من جامعة نوتنجهام بالمملكة المتحدة وجامعة عين شمس بالقاهرة , Galal Al , Sharif _Trading
Date de publication: 2017/01/05
Utilisateur supprimé
par Utilisateur supprimé

Act of making a strategic choice between producing an item internally (in-house) or buying it externally (from an outside supplier).The most important factors to consider are part of quantitative analysis, such as the associated costs of production and whether the business has the capacity to produce at required levels.

Utilisateur supprimé
par Utilisateur supprimé

The make or buy decision is the very first assessment mad in the purchasing process and often, the most important decision made by the company.

At first glance, it seems like a pretty straightforward decision, but think about this a minute. Whether you do something yourself, or hire someone to do it for you, actually defines your company and how it will operate.

Elke Woofter
par Elke Woofter , Project Assistant , American Technical Associates

answer

A) is purchasing goods (buy)

B) is manufacturing goods (make)

 

Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

When you are manufacturing a product, you will need several components. The components could be manufactured in-house or could be outsourced.

In such a case an analysis is made based on costing (direct as well as indirect), skill, expertise, delivery schedule of final product in order to decide which components are to made in-house and which components to be outsourced

Thanks for the invitation. Useful Information.

hisham abu dagga
par hisham abu dagga , Project Manager / مدير مشاريع , مؤسسة عبدالكريم العواض للمقاولات

 

Thank you for the invitation

 

Each greeting to everyone on the benefit and enrichment of informational

Utilisateur supprimé
par Utilisateur supprimé

Thanks for invitation. In agreement with your views and points as mentioned above by experts.

Abdul Rehman
par Abdul Rehman , Electrical Engineer , Tamdeed Projects

Thank you for the invitation and sharing the information.

Muhammad Farooq
par Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

Thanks for knowledge -----------------------

DR MD ANWAR HOSSAIN
par DR MD ANWAR HOSSAIN , Moderator , bayt.com

Thank you for invitation & knowledgeable info. 

Maher Ahmad
par Maher Ahmad , Head of Planning and Training Division , MOH

Thank you for the information.

Thank you for the invitation.