Running head: ASSIGNMENT # 1: MAKE OR BUY METHODS

Assignment #:1 Make or Buy Methods by Inas Ellaham
PMAN 641 – Project Procurement Management
Professor Michael Hagerman
University of Maryland University College
June 12, 2011 Table of Contents
Introduction 3
“Make” or “Buy” Analysis 4
Conclusion 7
References 9

Assignment #1: Make or Buy Methods
Introduction
According to the PMBOK (2008, p. 321), “a make-or-buy” analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or must be purchased from outside sources.” A number of factors could affect the make-or-buy decisions such as budget, scope, or time constraints; therefore, when making a decision project managers weigh the advantages and disadvantages of make versus buy options and their impacts on the project costs and project master plan date.
This paper examines and assesses the “Make or Buy” methods by analyzing it because project managers rely on it when deciding as to whether to “buy or make”. The first section of the research paper will present a brief description of these methods, followed by an analysis, which will include the advantages and disadvantages of make versus buy by providing reasons and examples against each one of these 2 options. Finally, based on the analysis and the findings demonstrated and revealed in this paper, I will highlight in my conclusion key limitations and constraints of these methods, and will shed light on some of its adverse effects, including risk, cost, time and budgetary implications on the success and progress of the project, and ultimately the usefulness of these methods. Description
According to Fleming (2003, p. 27), “the process of performing the make or buy analysis is one which will evolve from proposal to implementation”, and that