Make-or-Buy Decisions in Aerospace Organizations

Today's organizations suffer from inefficiencies that may be rooted in corporate governance, political or individual issues, or globalization.

Robert A. Goehlich focuses on the strategic aspects of decision-making within aerospace organizations, concentrating on the make-or-buy decision in order to examine organizational efficiencies. He develops a decision-supporting process, that handles approximately 50 propositions of make-or-buy decisions, systematically connected to strategic objectives, and organizational, product and environmental characteristics. The strength of this process lies in its ability to cover the entire spectrum of make-or-buy (the continuum from in-house to buy-off-the-shelf) in order to support decision-makers with holistic recommendations. This process allows one to determine the kind of organizational architecture that is best suited to a specified activity. The resulting computerized tool is applied to four case studies taken from the aerospace sector: (A) copy machine usage (as a reference), (B) aircraft final assembly production, (C) satellite rocket launch operation and (D) space tourism rocket development. In three of the four cases, the make-or-buy decision that is recommended by the tool mirrors instinctual, experience-based conclusions.