A Make or Buy Decision at Baxter Manufacturing Company
Course Mgmt. of Technology Resources
Instructor Rene Trevino
In regards to the new manufacturing software system, in regards to Kyle, Baxter Manufacturing Company that is in the business of looking to develop methods of producing large volumes of stampings at a very high quality. Over the years the company has embraced the aspect of new technology and how it can work within their system. I would recommend the in-house proposal out of the choices on the table.
The first question at hand should be the time of delivery day for a finished, fully operational system. In 1994, when Don Collins was hired, just after a successful internally developed system the whole department was flooded with requests. With that said a total of two years would be needed, so a proper system that can be supplied would be needed. Why you may ask? The main dispute is about time the project can be completed. In-house may appear to save money, yet EMS can be up and running in six months, spending $220,000 totaling to $420,000. With many benefits that include, a proven advanced system instead of a simple, "first try" system in-house. EMS has advanced programming capabilities that we do not and they have sold this package to hundreds of manufacturers. The system has been through several improvement cycles, updates taken care of to safeguard against any problems that may have come up during a trial and error process.
I understand EMS being questioned about previous vendors attempted to install an entire system without having inventory data under control. EMS will install one module at a time according to a proven schedule. Yet pushing technology ahead for the proper structure of the company would entail a prepackaged system to offer structure. With this system however you lose that custom feel. You can lose customers by changing and anticipating them changing with you. Without the end user being able...