Development of a decision framework and a knowledge management system for make/buy determinations in manufacturing

Abstract

This thesis describes a process for managing manufacturing sourcing decisions for final products and specifically addresses the Make/Buy issue. Background information describes the steps undertaken to develop this process, including a summary of best practice information. The process has three main elements that are described in detail: ** A strategic management system with concepts and tools that facilitate the determination of the focus for internal and external manufacturing. ** A tactical process consisting of two frameworks and associated tools. The first framework guides a project team through the Make/Buy decision for new products. The output of this framework is the determination of the optimal manufacturing site for a particular product. The second framework guides the corporation through a periodic review of the plant/product matrix. This review facilitates re-optimization of the system in response to the continuously evolving business environment. ** A knowledge management system describing how various functions and levels in the organization must interact to ensure that decisions made at the tactical level are congruent with the strategic direction. The knowledge management system includes tools to enhance the communication of manufacturing sourcing information throughout the organization. This process was developed especially for the Polaroid Corporation, yet the concepts and elements of the process are relevant to any organization wishing to optimize the manufacturing sourcing process.