A make or buy decision at baxter manufacturing company

Intelligent Machines This Robot Could Transform Manufacturing A smarter, safer new industrial robot could bring automation to new areas of manual work and help many U.

A make or buy decision at baxter manufacturing company

View solution to the question: It has been in business since as a privately held company. The process for making these stampings is very involved and complex. BMC developed methods for efficiently producing large volumes of stampings while keeping their quality very high.

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BMC uses state of the art machines to make the stampings and they make all the tooling necessary for those machines. Over the years, BMC has embraced the use of computers, computer technology, and software to enhance their competitive advantage and customer relationships.

A make or buy decision at baxter manufacturing company

A new MIS manager, Don Collins, was hired in and he led an effort to develop a mini-computer based system to accept EDI orders from customers and allow customer service to create shipping schedules, as well as raw materials tracking, in process inventories, and finished goods inventories.

These internally developed systems were so successful that the MIS department was flooded with requests for more systems. Don believes that it will take 2 years to internally develop the manufacturing software systems BMC needs to remain competitive.

To deal with all the requests for new systems and to prioritize projects a steering committee has been established.

The steering committee is currently discussing the option of in-house development make or purchasing the EMS system buy. You will recommend a course of action to your brother, Kyle, in regards to the new manufacturing software system. The obvious choices are do nothing, accept the EMS proposal and start implementation, or take Don Collins advice and create the system in-house.

Key Players Character 1: I wanted to find out from Lucas why he feels so strongly about using EMS. I asked him the following questions: Given that our MIS group is doing a good job developing new systems why should we purchase an outside system instead of building one in-house?

Why do you think we will be successful using an outside vendor when we were unsuccessful on two previous tries? Since Don is convinced we need to do this in-house I asked him to tell me: His estimate of the time and cost to develop an in-house system.

His major objections to purchasing a system from EMS. Don responded to that and also estimated what it would take to do a more thorough investigation of EMS proposal. I need to know what became of that effort.

How do you think our customers will view this situation and what do you think is the best way to proceed?

A make or buy decision at baxter manufacturing company

Lucas Moore - Vice President of Manufacturing We are still using outdated technology for our scheduling. The industry has passed us by in computer use for manufacturing and we are in danger of losing our reputation as a world-class manufacturer.

My education and my experience with Don's new inventory system have convinced me that computer systems can significantly enhance our efficiency and improve our customer service. We cannot wait two years for a home grown system that will probably have to be upgraded before it is completed.

I have had extensive discussions with EMS manufacturing specialists, read their literature, and seen the proposed systems demonstrated. I am convinced the system will do everything we will ever want to do. EMS assures me there will be no problem integrating their manufacturing system with our financial system and we can be up and running in six months.

Purchasing from EMS provides many benefits including: Six months to install an advanced system versus two years to develop our own basic system. We will get a proven, advanced system instead of a simple, "first try" system in-house. EMS has advanced programming capabilities that we do not and they have sold this package to hundreds of manufacturers.

The EMS software has already undergone several improvement cycles. It may not do things the way we always do but what makes our way better than hundreds of other manufacturers using this system?

As for the failed attempts in the past, there are three main differences this time: There was very little ownership of the new system before.CASE STUDY III A Make-or-Buy Decision at Baxter Manufacturing Company It is late Friday afternoon, and Kyle Baxter, president of Baxter Manufacturing Company, Inc., and his sister, Sue.

Make Or Buy Decision At Baxter Manufacturing Make Versus Buy Make versus Buy The Liquid Chemical Company manufactures and sells a range of high-grade products. WELCOME TO THE BOARD OF DIRECTORS TALENT BANK.

WELCOME TO BOARD OPTIONS' GLOBAL BOARD MATCH. Board revitalization without Board retained search fees. Make or buy decision Definition of 'Make-Or-Buy Decision' The act of choosing between manufacturing a product in-house or purchasing it from an external supplier.

In a make -or- buy decision, the two most important factors to consider are cost and availability of production capacity.

A smarter, safer new industrial robot could bring automation to new areas of manual work and help many U.S. manufacturers regain a competitive edge. Assignment # 2 Make-or-Buy Decision at Baxter Manufacturing Company What are the arguments in favor of Manufacturing Vice President Moore's proposal to purchase the manufacturing software from EMS?

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