Mechanical Engineering Commons^™

Make Or Buy Analysis Model Based On Tolerance Design To Minimize Manufacturing Cost And Quality Loss, Cucuk Nur Rosyidi, Reza Rizkichani Akbar, Wakhid Ahmad Jauhari

Makara Journal of Technology

In a manufacturing company, manufacturing costs, or component prices, and tolerance will affect the price and the quality of a product. Companies must produce high-quality products with low manufacturing costs in order to keep their products competitive in the market; however, it is difficult to produce a high-quality product with a low manufacturing cost. Companies have difficulties in determining the components to be produced using their own manufacturing facilities (make) or outsourced to their suppliers (buy). Hence, a make or buy analysis is needed to minimize the manufacturing costs and quality loss and to determine the optimum alternative regarding make …