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Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources. This decision is often referred to as the make-or-buy decision. According to the learning material, what are the reasons that support the decision to “make” the products. Choose all that apply.Group of answer choicesStrategic Alignment and Core CompetenciesThe need for a customized itemLack of suitable suppliersProtection of Intellectual PropertyControl over Quality and StandardsLower production cost to create the product in-house

Question

Project managers must frequently decide whether to obtain needed products and services from internal sources or from external sources. This decision is often referred to as the make-or-buy decision. According to the learning material, what are the reasons that support the decision to “make” the products. Choose all that apply.Group of answer choicesStrategic Alignment and Core CompetenciesThe need for a customized itemLack of suitable suppliersProtection of Intellectual PropertyControl over Quality and StandardsLower production cost to create the product in-house

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Solution

The reasons that support the decision to "make" the products according to the learning material could be:

  1. Strategic Alignment and Core Competencies: If the product or service aligns with the company's strategic goals and utilizes its core competencies, it may be more beneficial to produce it in-house.

  2. The need for a customized item: If the product or service needed is highly customized or unique, it may be more efficient and effective to produce it internally.

  3. Lack of suitable suppliers: If there are no suitable suppliers available or if the suppliers cannot meet the company's requirements, it may be necessary to produce the product or service in-house.

  4. Protection of Intellectual Property: If the product or service involves proprietary information or intellectual property, producing it in-house can help protect these assets.

  5. Control over Quality and Standards: Producing a product or service in-house allows the company to have direct control over the quality and standards, which may not be guaranteed when outsourcing.

  6. Lower production cost to create the product in-house: If it is cheaper to produce the product or service internally rather than outsourcing, it would make sense to "make" the product.

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