Insourcing/Outsourcing — The FlexCon Piston Decision
- 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.
- 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
- Discuss the primary reasons when and why insourcing/outsourcing
- 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?
- Discuss the major issues associated with an
insourcing/outsourcing analysis and decision.