Make vs. Buy Worksheet

Engineers must ask numerous questions when determining whether to make or buy automated assembly systems. Here are 24 important things to consider.



                                                                                                                                Purchase/Outsource
Depth of experience in designing automated assembly and test (AA&T) systems ___    ___

Ability to integrate AA&T system into production process ___    ___

Ability to provide turnkey services ___    ___

Ability to absorb an AA&T project without disrupting the organization ___    ___

Ability to deliver the system on-budget ___    ___

Degree of protection from risk this option represents to customer ___    ___

Number of AA&T systems they have built in the past ___    ___

Ability of the organization to add value to the project ___    ___

Financial stability of the organization ___    ___

Ability to deliver the system on-time ___    ___

Ability of the organization to invest adequate capital in this project ___    ___

Ability to control design and engineering costs ___    ___

Ability to control labor costs ___    ___

Ability to reverse the decision, if necessary, and pull the plug quickly ___    ___

Ability of organization to command preferred pricing for raw materials ___    ___

Amount of floor space that is available for this project ___    ___

Ability to provide on-going support for maintenance and upgrades ___    ___

How the organization’s core competencies match project needs ___    ___

Ability and willingness to deal with frequent engineering changes ___    ___

Ability to provide a TS16949 quality level product ___    ___

Ability to monitor new technologies and R&D activity ___    ___

Ability of organization to command preferred pricing for equipment ___    ___

Ability to minimize waste ___    ___

Ability to provide adequate training, support and documentation ___    ___

TOTAL: ___    ___

How to Use This Worksheet
1.Fill in the chart above using the legend below.

2.Multiply each entry by the factor in column one. Not all criteria are equal. A factor of three means that point of comparison is three times as important as a point of criteria with a factor of one.

3.Total the columns to determine which option best suits your needs.

Legend
1 = Less than adequate.

2 = Adequate.

3 = More than adequate.

Vice President
Whirlaway Corp.
Wellington, OH

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