Certified Professional Contract Manager (CPCM) 2025 – 400 Free Practice Questions to Pass the Exam

The primary focus of a "make or buy" program in contract management is to determine whether specific components or services should be produced internally (made) or acquired from external suppliers (bought). This decision-making process typically involves analyzing various factors such as cost, quality, capacity, strategic alignment, and the core competencies of the organization.

By evaluating the advantages and disadvantages of making a product in-house versus purchasing it from a supplier, organizations can optimize their resources and ensure that they make informed decisions that align with their business objectives. Factors like production capabilities, costs associated with manufacturing, availability of suppliers, and potential risks are critically assessed during this evaluation process.

Establishing a timeline for project completion, evaluating supplier performance, or defining project budgets are all important aspects of project management, but they do not represent the core essence of a "make or buy" program. Instead, these elements are generally considered after the make-or-buy decision has been made, as they fall under separate areas of project management and procurement.