What should be done if a make-or-buy analysis indicates two labor hours daily can be reduced with a convenience food product, and the decision is implemented because money should be saved?

What should be done if a make-or-buy analysis indicates two labor hours daily can be reduced with a convenience food product, and the decision is implemented because money should be saved?

• A. Eliminate the two labor hours from the schedule
• B. Recalculate the analysis after a week
• C. Do nothing
• D. Hire more staff to cover reduction

Answer: (A)

The main idea is to implement the savings from the make-or-buy decision by updating the schedule to reflect the labor hours you no longer need. If the analysis shows two labor hours can be saved daily by using a convenience food product, then once the decision is made to pursue that saving, you should remove those two hours from the daily production schedule so staffing and costs align with the new plan. Recalculating later wouldn’t capture the known benefit, doing nothing would waste the potential savings, and hiring more staff would increase costs rather than realize the savings. This adjustment ensures the operation reflects the chosen approach while monitoring to confirm the change maintains quality and safety.

The main idea is to implement the savings from the make-or-buy decision by updating the schedule to reflect the labor hours you no longer need. If the analysis shows two labor hours can be saved daily by using a convenience food product, then once the decision is made to pursue that saving, you should remove those two hours from the daily production schedule so staffing and costs align with the new plan. Recalculating later wouldn’t capture the known benefit, doing nothing would waste the potential savings, and hiring more staff would increase costs rather than realize the savings. This adjustment ensures the operation reflects the chosen approach while monitoring to confirm the change maintains quality and safety.