Make-versus-buy; acquiring additional production capacity and flexibility are critical decisions in manufacturing networks, especially when they go beyond cost savings. Even though cost continues to be a primary objective in any production strategy, other goals such as flexibility, time to market, and geography are making a significant impact on such decisions because a production location that once provided significant cost advantages may now be subject to geopolitical risks, economic challenges, or rising labor rates.
- Make vs. Buy
- Production capacity changes
- What impact do we have if we change production shifts?
- Do I have any benefit if I change the production mix between sites?
- Can I get benefit of Product Substitution or alternative Bill of Materials?
- Decide make-or-buy strategies and consider production capacity changes
Productivity and margins
Operational costs by creating optimal production plans