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.
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Set up a "Make or Buy" cost comparison