| Compare Buy to Build |
Details |
| Lowest development cost |
Evaluate the anticipated relative capital cost of preparing for production. This includes equipment, facilities, personnel, and other expenditures. |
| Lowest product cost |
Evaluate the anticipated relative cost of producing the product. This needs to include all costs required to get the product ready for insertion into an assembly or ready for delivery to the customer. Be sure that the costs compared are based on the same starting and end conditions and take into account the life of the product. |
| Highest product life cost stability |
Evaluate the anticipated relative stability of the cost estimates. How might the costs change over a two-year or five-year period? What controls are in place to manage the cost? |
| Lowest development lead time |
Evaluate the anticipated relative lead-time to get the product ready for production. |
| Lowest order lead time |
Evaluate the anticipated lead-time needed between placing an order and receiving the product. Just because something is produced in house, does not necessarily mean that it will be delivered sooner |
| Higher product quality |
Evaluate the anticipated relative quality of the product. Product quality includes finish and function. |
| Better product support |
Evaluate the anticipated relative ease with which you will be able to support the product. |
| Easiest to change product |
Evaluate the anticipated relative ability you will have to change the product. |
| Strongest intellectual property control |
Evaluate the anticipated relative control you will have over intellectual property. |
| Better control of order volumes |
Evaluate the anticipated relative control you will have over the size of the orders and how well the volume matches your needs. |
| Better control of supply chain |
Evaluate the level of control you have over suppliers |
Neither make nor buy will be the best for each of these measures. The best choice is some 
