Make-or-Buy as a Competitive Decision Tool for Automotive Industries

Paper #:
  • 2015-36-0181

Published:
  • 2015-09-22
DOI:
  • 10.4271/2015-36-0181
Citation:
Sardim, R., Tessaro, J., and Araujo, L., "Make-or-Buy as a Competitive Decision Tool for Automotive Industries," SAE Technical Paper 2015-36-0181, 2015.
Pages:
7
Abstract:
Productivity is result of competitive processes and it is a major factor for nation’s and industry growth. For Brazilian automotive industry it is tied, among other factors, to permanent value stream analysis and reevaluation. Especially on emerging economies, companies needs to review its strategies taking into consideration the market dynamics, current market position and future vision.Based on the manufacturing configuration, it is necessary to review current activities and process, checking in details which manufacturing operations add value to the organization, from technical, financial and strategic perspective. The decision to Make or to Buy, is a process for choosing to maintain the processes and operations in house or to outsource them. This is a key factor for industries, and is recommended the adoption of a methodology to assist the evaluation process.This paper targets to support the analysis and decision for an outsourcing process in automotive industries, using decision matrix, financial models and managing its implementation effectively. This paper shows as a result, the application of this model in a case study in an automotive industry.
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