Importance of Make-or-buy analysis
Explain the importance of planning (i.e., Plan Procurement Management as described in Part 1, Section 12.1.2 of the PMBOK® Guide) as a foundational activity in the procurement process in a two- to three-page paper (cover page and reference page are required and not included in the page count) and using your research skills address the following:
Explain what is Make-or-Buy analysis?
What can happen if procurement processes are built on poor planning?
What are the benefits of a Make-or-Buy analysis?
Provide an example of a procurement process used by a project-based organization found via the web or the CSU Global Library that demonstrate a proper use of the Plan Procurement Management. What do you like about the example?
Sample Solution
Thesis Statement: Planning is an essential activity in the procurement process, as it helps to set up realistic goals and expectations which ensure the best possible outcome for any project.
Planning is one of the most important components of a successful procurement process (PMI 2017). It involves setting specific goals and objectives regarding what needs to be achieved while mapping out all activities necessary in order to reach them. Moreover, this activity also includes creating timelines, considering potential risks along with developing appropriate strategies to address them (PMI 2013). All these processes together help create realistic expectations surrounding the scope of work that need to be done prior to starting a project.
Additionally , planning can assist in defining necessary resources such as personnel , financial support or materials needed for completing tasks . This provides clarity from early on regarding how much time is required for different stages as well as any other requirements for executing project successfully before commencement ( Leino-Kilpi et al., 2017 ). For example , if budget constraints are identified at outset then team members can plan accordingly without suffering any delays due lack of funding further down line .
Furthermore , planning also serves educational purpose by allowing individuals involved gain better understanding about their respective roles beforehand — this prevents occurrences where someone feels overwhelmed because they weren’t aware their involvement was expected from start . By clearly assigning duties , everyone involved will be knowledgeable about expectations helping avoid confusion or frustration later on during execution phase.
Finally , proper planning creates foundations which decisions made throughout entirety of lifecycle can build upon — it allows teams analyze past experiences effectively when evaluating future prospects thus making sure mistakes don’t get repeated over again unnecessarily ( PMI 2011 ) . As a result , outcomes become more favorable since all parties strive towards achieving common goal under same roof instead operating independently with no clear direction.
