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TOPIC: Make-Buy Decision Analysis Question

Make-Buy Decision Analysis Question 1 year 4 months ago #6604

  • Ginna Paola Espinosa Martinez
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If a company conducted a make-buy decision analysis and concluded that work can be done inside the organization under what scenario buy decision can still the best choice?

Make-Buy Decision Analysis Question 1 year 4 months ago #6607

  • Tracey South
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Hi Ginna:

If I understood your question properly, you could consider 'buying' or 'outsourcing' for the following reasons:
  • There is no resourcing capacity to build the item
  • The skills are not present and there is no time to upskill
  • Strategically if makes sense. For example, if you are looking to partner down the road.
  • Purely based on cost - maybe to volume is too high or too low to produce inhouse

This list isn't exhaustive but should give you a good sense of what to consider.

Tracey
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Last Edit: by Tracey South. Reason: HTML edit

Make-Buy Decision Analysis Question 1 year 4 months ago #6613

  • Ginna Paola Espinosa Martinez
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Thank you Tracey, your information is very helpful. In summary, make or buy analysis is based on operational (capacity) and strategic factors

For you experience and considering that I may have both options as answers in the PMP exam which will be the most important factor?

Make-Buy Decision Analysis Question 1 year 4 months ago #6633

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I can only tell you based on my experience.....Although both are important decision making factors, Strategy is always considered prior to operation capacity. If a decision does not ladder up to the organizations strategic direction, it needs to be discussed with senior management.

Tracey
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