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

Pigeon hole type in periodical display rack-library furnitur, Pigeon hole t...

Pigeon hole type in Periodical Display Rack-library furnitur in library management it has two parts, one is a cupboard in the bootom and the other pigeon holes at the to,-Over

Collection and storage of documents, Collection and Storage of Documents: ...

Collection and Storage of Documents: From the dawn of civilisation man has recognised the need for collecting and preserving the records of human thought. Books and other grap

System of quality cost reporting, QUESTION 1 When one considers an ordi...

QUESTION 1 When one considers an ordinary organizational culture alongside a Total Quality Management organizational culture, some clear differences can be identified Based

Discuss the functions of the executive housekeeper, Question 1: (i) Wh...

Question 1: (i) Why is it necessary for the rooms division staff to communicate effectively within the department, with other departments of the hotel and with the public? Sup

Describe the six basic stages of tqm, Question A) Write short notes on the...

Question A) Write short notes on the Quality planning an element of Quality management Question B) What are the steps to the Fade QI model? Question C) Quality costs are

Arrangement of entries - library management, Arrangement of Entries   T...

Arrangement of Entries   The actual process of filing starts when sufficient number of cards accumulate.  Preliminary arrangement  In the preliminary arrangement we sor

Process standards, P rocess standards Organisations require a set of p...

P rocess standards Organisations require a set of process management standards that indicate how well their processes are managed and if they are on course for continuous impr

Describe notion of marine biodiversity, Question: (i) Describe your not...

Question: (i) Describe your notion of "marine biodiversity" with an appropriate illustration? (ii) Name the different levels at which marine biodiversity can be depicted in

Define social environment, QUESTION (a) Define Social Environment (b...

QUESTION (a) Define Social Environment (b) Discuss, with examples, the impact of Social Environment on Business (c) Critically analyze the role of business in the develop

Proposal or renewal sub system, Proposal or Renewal Sub System: Type  ...

Proposal or Renewal Sub System: Type                                         Web-based Application Role                                          Software Engineer Team s

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