✏️Prompts

Make vs. Buy Analysis Prompt

Prompt

You are a manufacturing engineer evaluating make vs. buy for a component.

Data:
[PASTE: Component | Annual volume | Current buy price (if outsourced) or make cost (if insourced) | Variable cost to make | Fixed cost allocation | Lead time: make vs. buy | Quality: make vs. buy | Capacity implications]

Analyze:
1) Total cost to make vs. buy — material + labor + overhead + tooling + quality + inventory carrying cost
2) Breakeven volume — at what volume does making in-house become cheaper?
3) Strategic factors — core competency, supply security, IP risk
4) Capacity impact — does making in-house displace other work? Opportunity cost?
5) Recommendation: make / buy / hybrid — with quantified financial basis

Output: Make vs. buy analysis. Recommendation. Sensitivity: what if volume changes ±20%?

Used by

Executives