Case Study 1 Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They ave 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 sa, ft. Now if they want to expand and continue doing all th 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 are 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 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. a have more than doubled .5 % this Although, Mr. Mohan has found that the workers have been spending lot of time on tea breaks, lunch breaks and even in between each other. But, due to insufficient workers and staff, he the workers are taking advantage of this situation. For completing the work and delivering the products timely, he has to employ workers on overtime and his overtime cost has also increased the management and is worried where the new workers would come from as he finding shortage of workers for the existing job. He has requested the management not to the production spending lot of time talking to is unable to take strict action and 13 times. Mr. Mohan is worried about the new expansion plan of is already o for expansion immediately and look at improving and consolidating the existing set up. He has sent his request to Mr. S. Kumar Director - Operations Mr. Kumar has gone through the request of Mr. Mohan an d called a meeting of all the he marketing manager artment heads and explained the situation to all concerned. T has expressed very bullish prospect about the company's growth and said that the company should take advantage of growing economy and established brand image of the company and definitely go for expansion. The finance manger also expressed that thi will result in economy of scale for the products and will further increase the profitability of the products. Mr. Mohan again expressed his problems regarding availability of manpower as well as production control and effect Marketing manager asked the Pro on quality and productivity. The duction manager about the option of outsourcing. Mr. Case Study 1 Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They ave 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 sa, ft. Now if they want to expand and continue doing all th 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 are 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 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. a have more than doubled .5 % this Although, Mr. Mohan has found that the workers have been spending lot of time on tea breaks, lunch breaks and even in between each other. But, due to insufficient workers and staff, he the workers are taking advantage of this situation. For completing the work and delivering the products timely, he has to employ workers on overtime and his overtime cost has also increased the management and is worried where the new workers would come from as he finding shortage of workers for the existing job. He has requested the management not to the production spending lot of time talking to is unable to take strict action and 13 times. Mr. Mohan is worried about the new expansion plan of is already o for expansion immediately and look at improving and consolidating the existing set up. He has sent his request to Mr. S. Kumar Director - Operations Mr. Kumar has gone through the request of Mr. Mohan an d called a meeting of all the he marketing manager artment heads and explained the situation to all concerned. T has expressed very bullish prospect about the company's growth and said that the company should take advantage of growing economy and established brand image of the company and definitely go for expansion. The finance manger also expressed that thi will result in economy of scale for the products and will further increase the profitability of the products. Mr. Mohan again expressed his problems regarding availability of manpower as well as production control and effect Marketing manager asked the Pro on quality and productivity. The duction manager about the option of outsourcing. Mr