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Essay about Procurement Management Make-or-Buy Analysis
2899 WordsApr 1st, 201112 Pages
Assignment 1: Make-or-Buy Decision Analysis
Jacqueline M. Oxendine
PMAN 641 – Project Procurement Management
Professor Randall Napier
University of Maryland University College
February 13, 2011
Table of Contents Introduction 3 Methods of Make-or-Buy Decision Analysis 3 Hurdles to Overcome in the Make-or-Buy Decision-Making Process 9 Conclusion 11 References 12
Assignment #1: Make-or-Buy Decision Analysis All projects involve the need to determine whether the project work will be done in-house, external to the organization (outsourced), or a combination of the two. This is called “make-or-buy analysis” and is an essential part of project planning, as well as a tool/technique integral to procurement planning…show more content…
One example of how EIA can affect a make-or-buy decision: As part of the many make-or-buy analyses done for the Secure Border Initiative (SBI) Tactical Infrastructure Program, it was determined that some of the Border Fence construction contracts would be awarded to HUBZone-certified small businesses to help economically strengthen areas of the U.S. that have a history of being economically depressed. (This also was to help fulfill goals in Federal legislation, but [HUBZone program faces economic uncertainties, 2011].)
Technical analysis covers both the scope of the project (what is to be done) as well as the techniques, tools, and methodologies required (how it is to be done). Technical analysis may cover the following areas.
High-level scope definition. What does the scope of the project encompass? All project planning must begin with scope definition. According to Fleming (2003, p. 26), scope definition should include the identification of all make-or-buy choices that need to be made.
Alternatives analysis. Are there multiple ways to achieve this scope? If so, what are the pros and cons for each alternative?
Engineering analysis. What skills, techniques, tools and/or methodologies are required to execute this scope?
Resource analysis to support a make-or-buy decision may seek to answer the following questions.
Does the organization have: * people with the required skill