Open Access Graduate Research Paper
The problem analyzed in this study is how to build a business case and project plan for insourcing a steel component part family at an agricultural manufacturer in the Midwest. The part family consists of three part numbers that were being produced outside of the organization, and are very similar to parts that are currently made internally. The supply management organization requested manufacturing to quote this work as a potential cost savings.
Reducing the overall cost of the product is essential to the organization remaining competitive in the global marketplace. Reducing the cost of the product allows the manufacturer to increase the margins on their products. The increased margins not only make the company more profitable, but also provide funds for future growth and expansion. However, failure to reduce costs weakens the company's ability to remain competitive with other equipment manufacturers. Increased costs will either erode margins or force the company to increase the cost of their product. If customers are not willing to pay for the cost increases the company may be forced out of business.
Year of Submission
Master of Science
Department of Industrial Technology
1 PDF file (24 pages)
©2014 Brett M. Schlomann
Schlomann, Brett M., "Project Planning for Insourcing Manufactured Steel Components" (2014). Graduate Research Papers. 3761.