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%?
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Executives