Comments on: Make or Buy: How Not to Do It https://www.allaboutlean.com/make-or-buy-how-not-to/ Organize your Industry! Tue, 27 Jun 2023 11:25:03 +0000 hourly 1 By: Martti Hakulinen https://www.allaboutlean.com/make-or-buy-how-not-to/#comment-139597 Thu, 22 Jun 2023 15:51:36 +0000 https://www.allaboutlean.com/?p=30826#comment-139597 The fictitious example is absolutely tru. as a manufacturing manager I often was advised to purchase the high volume types and keep the low volume ones, since the calculations showed that the profit would increase. Due to the reasons that you present I refused.

It was actually possible to show that a lot of cost would remain and would be put on the low volume types.

A “better” way to show that you need to out-source in-house production is decide if it is your core competence or not. If it’s not, out-source, but then 100 % of the volume. Then when you need to invest use the money to improve knowledge/cost where you have your core competence.

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