Make-or-Buy Decision Analysis for Electrical Engine Analytical Essay by scribbler

Make-or-Buy Decision Analysis for Electrical Engine
An evaluation of a make-or-buy decision for a Japanese manufacturer of electronic products.
# 152622 | 1,727 words | 16 sources | APA | 2013 | US
Published on Apr 04, 2013 in Business (Management) , Business (Applied Operations)

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This paper evaluates the writer's employer, a large Japanese manufacturer of electronic products, and analyzes its strategy of make versus buy for a series of electrical motor assembly that will control the print engine of a large document production system. The paper explains the factors that lead organizations to pursue make-or-buy decisions and discusses how in this particular business, it is critical to be able to quickly customize these systems to unique customer needs. The paper also discusses how the decision process of whether to pursue a make-or-buy decision needs to take into account how accurately and efficiently an organization is at knowledge transfer and the ability to create a learning organization as a result. The paper highlights the scope and potential benefits of the make-or-buy decision for the electrical motor assembly and concludes that ultimately, the measure of success or failure of any make-or-buy decision is whether the direction is adopted, integrated and acted upon daily by the company attempting this strategy.

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From the Paper:

"Many factors lead organizations to pursue make-or-buy decisions. These include competitive rivalry (Arya, Mittendorf, Sappington, 2008), time-to-market and speed of technological change (Glimstedt, Bratt, Karlsson, 2010) the ability to manage rapid production cycles (Ruffo, Tuck, Hague, 2007). As is the case with many outsourcing strategies, the ability to quickly gain expertise a company does not have internally, especially in the areas of innovation and staying in step with rapid industry technology lifecycles is also a powerful enabler of make or buy decisions (Yu, 2008). In the case of the Japanese manufacturer who is producing large document production systems, the need to be able to customize these systems to unique customer needs quickly is critical. The primary reason that this manufacturer is considering the make-or-buy decision for the electrical motor assembly is its lead-time in the system customization process. Make-or-buy decisions are among the most effective strategies for keeping time-to-market strategies moving forward when product configuration and build-to-order strategies are relied on (Petrick, Gonsch, Steinhardt, Klein, 2010). For our manufacturing operations to be competitive from a product delivery standpoint, our focus has to be on shortening the production and fulfillment process of the large document production systems produced to the specific requirements and specifications of customers."

Sample of Sources Used:

  • Edward G Anderson Jr, and Geoffrey G Parker. 2002. The effect of learning on the make/buy decision. Production and Operations Management 11, no. 3, (October 1): 313-339.
  • Arya, A., B. Mittendorf, and D. Sappington. 2008. The Make-or-Buy Decision in the Presence of a Rival: Strategic Outsourcing to a Common Supplier. Management Science 54, no. 10, (October 1): 1747-1758.
  • Jaydeep Balakrishnan, and Chun Hung Cheng. 2005. The Theory of Constraints and the Make-or-Buy Decision: An Update and Review. Journal of Supply Chain Management 41, no. 1, (January 1): 40-47.
  • Bidwell, M.. 2010. Problems Deciding: How the Structure of Make-or-Buy Decisions Leads to Transaction Misalignment. Organization Science 21, no. 2, (March 1): 362-379,587.
  • Jeffrey H Dyer, and Kentaro Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks 21, no. 3, (March 1): 345-367.

Cite this Analytical Essay:

APA Format

Make-or-Buy Decision Analysis for Electrical Engine (2013, April 04) Retrieved February 06, 2023, from

MLA Format

"Make-or-Buy Decision Analysis for Electrical Engine" 04 April 2013. Web. 06 February. 2023. <>