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Inventor's manufacturing decision: Make or outsource components

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Discuss a manufacturing decision facing the firm in terms of how to manufacture the product; you have three possible options:

Establish manufacturing of all components and final assembly.
Establish assembly only operation with components purchased from local vendors.
Outsource the entire manufacturing operation to an offshore company.

After making your decision, write a report covering the following topics:

Describe your decision regarding the manufacturing decision you have chosen.
Explain the pros and cons of that decision and the logic you used in reaching that decision.
Include one other possible option for this manufacturing decision.

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Solution Summary

The expert examines the make or outsource components for inventor's manufacturing decisions.

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Manufacturing Decision

The possible manufacturing decision selected by me is Outsource the entire manufacturing operation to an offshore company.

As per the scenario, I have no specific knowledge about the manufacturing process and management decision. My skills regarding financial decisions are very few. The manufacturing decisions are largely dependent upon the vertical integration within a firm (Gattorna, 2003). Due to this, I have not selected the first two decisions of establish manufacturing of all components and final assembly and establish assembly only operation with components purchased from local vendors. These decisions require in depth knowledge of manufacturing process and good skills to manage the financial resources (Manufacturing Process Outsourcing: Control without the Cost, n.d.).

Outsourcing the entire manufacturing operation to an offshore company does not need the skills in the manufacturing process. The company can outsource the entire process from raw material to the final assembly (Gattorna, 2003). This is a strategic decision for the management that what ...

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