文档介绍：A framework for
Developing a framework for make-or-buy
make-or-buy decisions decisions
. CaÂnez, . Platts and . Probert
Cambridge University, CambridgeUK 1313
Keywords Make v. buy, Outsourcing, Sourcing, Decision making
Abstract The make-or-buy question represents a fundamental dilemma faced by many
companies. Companies have finite resources and cannot always afford to have all manufacturing
technologies in-house. This has resulted in an increasing awareness ofthe importance ofmake-or-
buy decisions. This paper reports on the development ofa make-or-buy frameworkto address the
make-or-buy decision for either a specific individual part or family of parts. Firstly, a literature
review ofthe principal make-or-buy approaches is discussed. Secondly, the development ofa make-
or-buy framework is described and the framework is explained and illustrated using case studies.
Thirdly, the operationalisation ofthe frameworkis outlined. The paper concludes with a
discussion ofits contribution to both the academic understanding ofthe subject, and the
improvement ofindustrial practice.
Introduction
The make-or-buy question represents a fundamental dilemma faced by many
companies. Companies have finite resources and cannot always afford to have
all manufacturing technologies in-house. This has resulted in an increasing
awareness of the importance of make-or-buy decisions. Although the strategic
implications of make-or-buy have been discussed for many years, make-or-buy
decisions are often made purely on the basis of cost. However, during the last
decade more emphasis has been placed on providing a more practical
structured guidance on make-or-buy decisions. In recent years, a number of
approaches (Venkatesan, 1992; Welch and Nayak, 1992; Probert, 1997; McIvor
et al., 1997; Cox 1997) has been proposed. Although these approaches have been
helpful in shaping the make-or-buy strategy, they seem too highly aggregated
to help in addressing specifi