...Case Problem: Maxitek Company manufactures small electronic products, such as alarm clocks, calculators, kitchen timers, stopwatches and automatic pencil sharpeners. Some of products are sold as sets and others are sold individually. Products are studied as to their sales potential, and then cost estimates are made. The engineering department develops production plans, and then production begins. The company generally had very successful product introductions. So far only two products introduced by the company have been discontinued. One of the products currently sold is a multi-alarm clock. The clock has four alarms that can be programmed to sound at various times and for varying lengths of time. The company has experienced a great deal of difficulty in making the circuit boards for the clocks. The production process has never operated smoothly. The product is unprofitable at present time, primarily because of warranty repairs and product recalls. Two models of the clock were recalled, for example, because they sometimes caused electric shock when the alarms were being shut off…. The engineering department is attempting to revise the manufacturing process, but the revision will take another six months at least. The clocks were very popular when they were introduced. Presently the company has received a very large order for several items from Kmart stores. The order includes 5,000 of the multi-alarm clocks among other items. When maxitech suggested Kmart to purchase the multi-alarm...
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...Make versus Buy The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging. The company has a special patented lining made that it uses in specially designed packing containers. The lining uses a special material known as GHL. The firm operates a department that maintains and repairs its packing containers to keep them in good condition and that builds new ones to replace units that are damaged beyond repair. Mr. Walsh, the general manager, has for some time suspected that the firm might save money and get equally good service by buying its containers from an outside source. After careful inquiries, he has approached a firm specializing in container production, Packages, Inc., and asked for a quotation. At the same time, he asked Mr. Dyer, his chief accountant, to let him have an up-to-date statement of the costs of operating the container department. Within a few days, the quotation from Packages, Inc., arrived. The firm proposed to supply all the new containers required—at that time, running at the rate of 3,000 per year—for $1,250,000 a year, the contract to run for a guaranteed term of five years and thereafter renewable from year to year. If the number of containers required increased, the contract price would increase proportionally. Packages, Inc., also proposed to perform all maintenance and repair work on existing packaging containers for a sum of $375,000 a year, on the same contract terms. ...
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...Make vs. Buy Revisited Reassessing your company’s manufacturing strategy M ake or buy? The classic manufacturing question still has no easy answer. Amid signs of demand recovery, but with capital still limited and resources thinned by restructuring, top executives today are revisiting the issue. To come to the right make-or-buy decision, leading companies resist the temptation to “feed the beast.” Instead of focusing only on short-term gains, these leaders keep their long-term strategy and corresponding core competencies in mind. They adopt a clearly defined manufacturing strategy, and then adopt the right tactics that can lead to smart decisions and a competitive advantage. The trade-offs between making a product inhouse and buying it externally are well known to most senior executives. The “buy” approach— a manufacturer purchasing a necessary part from an outside source—frees up resources, reduces capital demands, increases flexibility and improves returns on capital employed, but in a tough market companies may seek to avoid potential quality concerns and supply risks. On the other hand, a “make” approach—developing and building that same necessary part internally—enables the company to utilize available internal capacity, absorb fixed costs and protect intellectual property, but it can lead to unnecessary complexity and divert time and attention away from highervalue activities. Choosing “make” simply because the capacity already exists, or “buy”...
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...Make versus Buy The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging. The company has a special patented lining made that it uses in specially designed packing containers. The lining uses a special material known as GHL. The firm operates a department that maintains and repairs its packing containers to keep them in good condition and that builds new ones to replace units that are damaged beyond repair. Mr. Walsh, the general manager, has for some time suspected that the firm might save money and get equally good service by buying its containers from an outside source. After careful inquiries, he has approached a firm specializing in container production, Packages, Inc., and asked for a quotation. At the same time, he asked Mr. Dyer, his chief accountant, to let him have an up-to-date statement of the costs of operating the container department. Within a few days, the quotation from Packages, Inc., arrived. The firm proposed to supply all the new containers required—at that time, running at the rate of 3,000 per year—for $1,250,000 a year, the contract to run for a guaranteed term of five years and thereafter renewable from year to year. If the number of containers required increased, the contract price would increase proportionally. Packages, Inc., also proposed to perform all maintenance and repair work on existing packaging containers for a sum of $375,000 a year, on the same contract terms. ...
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...Running head: ASSIGNMENT # 1: MAKE OR BUY METHODS Assignment #:1 Make or Buy Methods by Inas Ellaham PMAN 641 – Project Procurement Management Professor Michael Hagerman University of Maryland University College June 12, 2011 Table of Contents Introduction 3 “Make” or “Buy” Analysis 4 Conclusion 7 References 9 Assignment #1: Make or Buy Methods Introduction According to the PMBOK (2008, p. 321), “a make-or-buy” analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or must be purchased from outside sources.” A number of factors could affect the make-or-buy decisions such as budget, scope, or time constraints; therefore, when making a decision project managers weigh the advantages and disadvantages of make versus buy options and their impacts on the project costs and project master plan date. This paper examines and assesses the “Make or Buy” methods by analyzing it because project managers rely on it when deciding as to whether to “buy or make”. The first section of the research paper will present a brief description of these methods, followed by an analysis, which will include the advantages and disadvantages of make versus buy by providing reasons and examples against each one of these 2 options. Finally, based on the analysis and the findings demonstrated and revealed in this paper, I will highlight in my conclusion key limitations and constraints...
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...Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They have been in the business for last 3 years and have been manufacturing only one type of valves. They started their business initially with sales of 10,000 valves per month and now they have grown the volume to about 50,000 valves per month. They have been buying all the raw material for the valve and were doing all the manufacturing in house. Now they have established themselves in the market and are planning to expand and produce different varieties of valves. They have their plant in the main city and the total area of the plant is 50,000 sq. ft. Now if they want to expand and continue doing all the activities of manufacturing of all the varieties in house, they would need another 50,000 sq.ft. of the area. In the recent times, the land prices in the area have more than doubled in the last 3 years and still land is available with great difficulty. Mr. Mohan is the production head of ABC Ltd. and has been successful with the production and the level is continuously increasing. But in recent times, he is facing the problem of quality complaints which have gone up from average 0.2 % in previous 2 years to 0.5 % this year. Also, he is finding that there is a high level of dissatisfaction among the workers regarding workload as well as salary levels. The workers are regularly complaining about the over work. Although, Mr. Mohan has found...
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...Abstract In my research, based on the information given but in my own words, I will explain what approaches to recruiting might be best suited for Apple’s talent acquisition. I will suggest three ways that Apple can effectively plan HR resources, and rank them in order of cost implementation. I will also discuss the benefits that forecasting provides for Apple. Lastly, I will state why you I agree or disagree that this is a necessary first step in all HR resource planning. Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. The best recruiting approach for Apple would have to be an employment agency, especially for their engineering based positions. Apple is known as an innovative force and it is important that employees keep their secrets confidential. In regards to entry level positions, I would suggest Apple try recent college graduates and/or colleges and Universities. If Apple chooses to use Universities and recent college graduates they would get some of the newest and freshest ideas on the market, keeping in line with their innovative way of thinking. Describe the recruiter traits and behaviors that would lead to the most successful recruiting campaign for Apple. Recruiter traits for Apple would have to include, being knowledgeable about Apple’s products, culture and mission. Apple has a reputation to uphold and the recruiters can bring no less to...
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...Relatively inexperienced Joe Magers became president of the company in 2010. An inexperienced Joe Magers found it all too hard with very little training to run the company successfully. It resulted in the financial statement of 2010 also, the company went on to make a loss of 73000 in a good business year. So Joe Magers decided to appoint Brandon Cook, an experienced man to help him to revive the company from this difficult situation and to train him in all aspect of the company’s business. The Board of Directors has appointed SWIN HBC606 consultant to review the current financial situation of the company independently and to give recommendations for company’s future financial viability. The purpose of this report is to review and analyse the financial and operational aspects of the company to give the company a better direction in this tough and challenging market condition. The report covers detailed analysis and recommendations on the product line, overall profitability, financial impact of different cost and pricing. The company’s product line consists of three product line 100 series, 200 series and 300 series. Among these 100 series is the most profitable product line in the company. Now the company has to make a serious decision as to whether to reduce the price of 100 series to 2.25 in line with Bosworth, market leader in the industry. After a careful consideration of different aspects, it has been recommended to reduce the price. Joe Magers suggestion to drop the 300...
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...Struggling to Make the Best Buy • Describe Ashley’s dilemma in this case. Ashley’s dilemma is to make the right decision out of the set of alternatives lying in front of her. Since her boyfriend lost his MP3 player a month before his birthday the choice for the perfect gift for his birthday was clear.i.e.MP3 player. But the choice of buying the right MP3 player for her boyfriend is not a recurring decision. She has never bought a MP3 player for her boyfriend so she has no experience whatsoever. She is not tech savvy and doesn’t understand the features and the functions of a MP3 player. Hence, she decides to get some help from Kade’s best friend who she figured would have an idea of his taste and preferences. She also tried to seek the advice from the store salesman who had knowledge about the players leaving her with the option of opting for either of the two. • What steps are required Ashley, leading up to her final decision? How does Ashley prioritize which information is more important and relevant to her purchase? What are her alternatives? The steps that’ll lead her to the final purchase decision begins with the information search for a small mp3 player in the price range of $40 to $60. Since the source of information available to her is external and not her own knowledge or experience with the product, she needs to evaluate the two alternatives suitably. The two alternatives are:- 1. Creative Zen Stone Plus which costs $59.99 and is recommended by her boyfriend’s...
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...Running Head: Apple’s Make-vs.-Buy Decision Apple’s Make-vs.-Buy Decision Apple’s best approach regarding hiring employees for their top technology or engineering positions would be private employment agencies. Since there is a huge secrecy that surrounds Apple’s products, employment agents have the ability to bring in the right fit candidates for Apple’s top positions. In regards to Apple’s entry level positions, recruiting at Colleges and Universities would be an successful and inexpensive tactic. Apple is a company which will continuously stay on the leading edge in new technology ideas. Therefore, it is extremely important for Apple to stay fresh with new perspectives and ideas. With this being the case, Apple shouldn’t only source their talent from internal sources such as referrals or all internal promotions. Internal sourcing can show growth and have succession planning in any company, but it shouldn’t be Apple’s one and only source of growth because it may limit new ideas and innovations from coming to the table from external experiences. In order for Apple to draw interest from the best talent, Apple must have the best talent searching for the best talent. The recruiters must be savvy and knowledgeable about Apple products. An individual who applies for a position most likely has...
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...“Apple’s Make vs. Buy Decision” Instructor: Matthew Gonzalez Course: Human Resource Management Foundation Date: April 27, 2012 Abstract In my research, based on the information given but in my own words, I will explain what approaches to recruiting might be best suited for Apple’s talent acquisition. I will suggest three ways that Apple can effectively plan HR resources, and rank them in order of cost implementation. I will also discuss the benefits that forecasting provides for Apple. Lastly, I will state why you I agree or disagree that this is a necessary first step in all HR resource planning. Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. The best recruiting approach for Apple would have to be an employment agency, especially for their engineering based positions. Apple is known as an innovative force and it is important that employees keep their secrets confidential. In regards to entry level positions, I would suggest Apple try recent college graduates and/or colleges and Universities. If Apple chooses to use Universities and recent college graduates they would get some of the newest and freshest ideas on the market, keeping in line with their innovative way of thinking. Describe the recruiter traits and behaviors that would lead to the most successful recruiting...
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...Apple’s Make-vs.-Buy Decision HRM 500 HR Management Foundations Apple’s Make-vs.-Buy Decision Recruitment Approaches for Apple Apple would be best served with sourcing recruitment efforts from private employment agencies for their top technology or engineering positions. Considering the secrecy that surrounds Apple products, head hunters would be able to source out potential right fit candidates for Apple’s top positions. For their more entry level tiers, recruitment efforts at Colleges and Universities would be an effective and affordable approach. Apple also will have its fair share of direct applicants, considering the fact that it is very trendy and appeals to all consumers. As stated in the NY times, it has “cast a spell” on consumers and investors. When visiting Apple’s website for careers, the page is appealing and full of promise for not just any job, but a career. Apple is a company that is going to always stay on the frontier of new ideas. In order to do this, it is important to stay fresh with new perspectives and ideas. With this being the case, Apple would want to not only source their talent from internal sources such as referrals or all internal promotions. It is important to show growth and have succession planning in any company, but it should not be the sole source of growth as it might limit new ideas and innovations from coming to the table from outside experiences. Recruiter traits and behaviors...
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...Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. The Approach that Apple applies to acquisitions staff is innovative. Not all companies have the opportunity to buy other companies to ensure the acquisition of qualified personnel and also have the ability to hire all employees no matter where they work or how much is the salary. This method of "if I want it, I have it", it can only be applied by a company with great economic resources and human resources with a solid structure that attracts employees with excellent skills. Apple has shown this to the forefront of technology and apply that technology to find talent, not only looking for people who want a log file of talent, but organizes job fairs, web sites preparing to list jobs and choose resumes of potential employees, but also hire people quickly, Apple is capable of buying companies to ensure the right people. The Human Resources department of Apple applies all the steps in the process of human resource planning, but in a way to match the technology, using all the technological tools available on the Internet and using innovative methods that are effective. Describe the recruiter traits and behaviors that would lead to the most successful recruiting campaign for Apple. The information presented on the case study shows that Apple has been doing a job of recruiting new talent. Apple is a company at the forefront and very...
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...Recruitment Approaches for Apple Apple would be best served with sourcing recruitment efforts from private employment agencies for their top technology or engineering positions. Considering the secrecy that surrounds Apple products, head hunters would be able to source out potential right fit candidates for Apple's top positions. For their more entry level tiers, recruitment efforts at Colleges and Universities would be an effective and affordable approach. Apple also will have its fair share of direct applicants, considering the fact that it is very trendy and appeals to all consumers. As stated in the NY times, it has "cast a spell" on consumers and investors. When visiting Apple's website for careers, the page is appealing and full of promise for not just any job, but a career. Apple is a company that is going to always stay on the frontier of new ideas. In order to do this, it is important to stay fresh with new perspectives and ideas. With this being the case, Apple would want to not only source their talent from internal sources such as referrals or all internal promotions. It is important to show growth and have succession planning in any company, but it should not be the sole source of growth as it might limit new ideas and innovations from coming to the table from outside experiences. Recruiter traits and behaviors that would lead to a successful recruiting campaign for Apple Recruiters for Apple would have to have both the talent of being warm, welcoming...
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...Case: Apple’s Make-vs.-Buy Decision In a turnaround from a trend in which high-tech (and other) manufacturers have outsourced the making of important components in order to increase efficiency and focus on what they do best, Apple has recently made moves that seem aimed at bringing the design of microchips back in-house. Apple is known for innovative design, and along with that, it tends to keep details of what it makes highly secret. Making chip design a company process, rather than a product to buy, gives Apple more control over the process-and over the secrecy. Of course, the decision to handle its own development has huge implications for human resource management. The company needs all-new labor forecasts, a larger labor force, and an intense push to bring in technical talent. Recently, Apple has been hiring many new engineers. Products they could be assigned to include microchips that require less power to operate iPhones and iTouch devices, as well as circuitry to improve the graphics displayed in games and videos played on its devices. A top-notch team could, at least in theory, come up with unique improvements that will take rivals by surprise. One way to acquire a lot of talent fast is to acquire entire companies and make them part of Apple. And that’s one move Apple has been making. The company recently acquired P.A. Semi, a start-up company that designs microchips. Its products could be used to run iPhones and iPods. Observers are guessing that chips developed...
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