Make or buy analysis

Projects are unique, so are project strategies. In every project, once the scope gets decomposed into a work breakdown structure, it is time to decide which all work packages must be performed by the project team, and the ones to be sub-contracted. This is a an example of a make or but analysis at a higher level in a project. This percolates down to tools, jigs, fixtures, assemblies, sub-assemblies, components etc. This helps the core project team to focus on the critical activities. This also helps to get the work done through expert companies, where the core team lacks those skills.

In one of the projects I worked, the core module was a scheduling engine. We had the options to;

  • Do it ourselves by hiring experts
  • Sub contract that work to a company which had the expertise and track record
  • Buy that component, and customize it

We decided to sub-contract it, which was one of the critical make or by decisions we made in the project, and that led to the project’s success.

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