4. Set up a "Make or Buy" cost comparison

Technical specifications must be clearly established with quantified requirements.

In particular, the quality level of suppliers compared with in-house workshops must be clearly established for selection purposes.

The costs to be compared are production costs (in-house) and purchasing costs (outsourced).

For components that can be either outsourced or kept in-house, the effect of increasing or maintaining a level of productive hours to absorb budgeted overheads must be taken into account when the time comes.