Which of the following should a project manager consider as part of a make or buy analysis?

The correct answer is D. Trade secrets. Make-or-buy analysis determines whether it's more cost-effective to produce the needed resources in-house or to procure them from outside the organization. You should include both direct costs and indirect costs when using the make-or-buy analysis technique. Direct costs are…

Project management concepts

Question

Options

AOrganization type
BKPIs
CProject charter
DTrade secrets

How the community answered

(47 responses)

A
2% (1)
B
9% (4)
C
15% (7)
D
74% (35)

Explanation

Make-or-buy analysis determines whether it's more cost-effective to produce the needed resources in-house or to procure them from outside the organization. You should include both direct costs and indirect costs when using the make-or-buy analysis technique. Direct costs are those that are directly attributed to the project, such as costs needed to produce the resource. Indirect costs are those costs associated with overhead, management, and ongoing maintenance costs. You can also use make-or-buy analysis when deciding whether it's more cost-effective to buy equipment or to lease it. Other considerations to take into account in make-or-buy analysis include capacity, skill sets, availability, and company trade secrets

Topics

#make or buy analysis#procurement#trade secrets#vendor management

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