Project Procurement1 Essay Example | Topics and Well Written Essays - 1000 words

Project Procurement1 - Essay ExampleIn reality it is not as simple as it seems because the choice can rotate from small matters much(prenominal) as if a association makes turbine generators they might have to consider either to set up gawk bearing manufacturing machine with in their business premises or should they simply purchase it from away(p) or for instance a car manufacturing company might consider making a engine or purchasing it from outside resources. The obtain or make decision does not only pertain in manufacturing companies but it is also found excessively in outsourcing companies for instance a data processing company will think if they should hire data entry employees or give them out to specialized assistance providers (Probert, 1997).Till the twentieth century many of the companies were manufacturing all their components in house. While some companies like pass over Motor Company was not only extracting the iron ore from their own plant but was also fabricating the equipment require to assemble the car on the other hand Toyota had started purchasing three fourth of their entire rough material from the suppliers and were only focusing on assembling the car parts together. As years passed the apparent movement of purchasing from outside resources has hold up more and more common. The trend is more common amongst the service businesses much(prenominal) as fleet management, billing and collection, fleet management and man power recruitment. The Business Process Outsourcing has become extremely popular. The companies are now outsourcing their entire value chain to other companies both locally and outside the boundaries of the county. The best example of outsourcing would be the IT outsourcing industry which has grown from 131 billion to $ 160 billion in 2006 (Mahadevan, 2008).Whether to buy or whether to manufacture is a question that is always on the minds of the procurement police squad. There are non-homogeneous issues that are assoc iated with the buy or make decision making such as firstly the team has to decide whether