CASE STUDY QUESTION

1. Perform a quantitative insourcing/outsourcing analysis using the data provided. What qualitative issues might affect your final decision? Identify any costs or issues that are not part of your analysis that might affect your decision. What is your recommendation regarding what FlexCon should do with its family of pistons? Support your arguments with evidence gathered during your analysis.
2. Assume your group decided to outsource the pistons to the external supplier. Identify a plan that would enable FlexCon to carry out this recommendation. Be as thorough as possible.
3. Discuss the primary reasons when and why insourcing/outsourcing decisions occur.
4. A major challenge with an insourcing/outsourcing analysis involves gathering reliable data. Discuss the various groups that should be involved when conducting an insourcing/outsourcing analysis such as the one presented in this case. What information can each of these groups provide?
5. Discuss the major issues associated with an insourcing/outsourcing analysis and decision.

Warning: Make sure you explain, in details, how you calculated each number in your table for question 1, since merely having numbers in a table will not give you any mark. I need to know how you came up with those numbers.

Please read the following case study link below to solve the above questions. At the end of the case study, there is 5 question don’t get confused with it because those question’s are same as the above questions.  If using cited website please use reference at the end of the page. 

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Regarding the primary reasons when and why insourcing/outsourcing decisions occur, it can depend on the organization and the specific industry. Some common reasons for outsourcing include the desire to reduce costs, gain access to specialized expertise or technology, or to focus on core competencies. Insourcing, on the other hand, is often done to maintain control over key processes, ensure compliance with regulations or company standards, or to promote innovation.

When conducting an insourcing/outsourcing analysis, it’s important to involve several groups in the organization including finance, operations, and human resources. Finance can provide information on costs, including the costs of raw materials, labor, and overhead. Operations can provide information on production processes, capacity, and quality control. Human resources can provide information on employee skill sets, availability and cost.

Major issues associated with an insourcing/outsourcing analysis and decision include:

• Determining the true costs of outsourcing, as it can be difficult to accurately predict future expenses.
• Ensuring that the external supplier meets the company’s standards for quality and compliance.
• Risk of losing control over key processes or intellectual property.
• Difficulty in integrating the outsourced process with the rest of the organization.
• Potential negative impact on employee morale and the possibility of job loss.

Regarding the plan that would enable FlexCon to carry out the outsourcing recommendation, it will vary depending on the organization, but generally, some key steps would include:

• Identifying and selecting a reputable supplier through a thorough vendor selection process
• Negotiating a contract that clearly defines the scope of work, timeline, deliverables, and payment terms
• Setting up clear communication channels and performance metrics to monitor the supplier’s performance
• Regularly review the performance and cost of the supplier, and adjust the contract accordingly if necessary.
• Continuously monitor the supplier’s performance to ensure they meet the quality and compliance standard.
• Communicating the decision effectively and manage the transition.

It is important to consider that all the above steps are crucial to conduct an outsourcing decision, but there is also a key importance in a continous monitoring and analysis of the decision to ensure that the outsourcing is fulfilling the expectations and goals established.

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