Question 1
AdvancedSupplier Strategy · Supply Chain Cost Analysis
A global medical device manufacturer is transitioning its supply base strategy to reduce costs and improve quality control. The executive team is currently analyzing whether to continue manufacturing a proprietary sensor housing internally or outsource it to a specialized contract manufacturer. The internal facility has high overhead costs but mature quality controls. The external supplier offers a 30% cost reduction but has no history of producing medical-grade components.
Which of the following analytical tools is MOST appropriate for the Supplier Quality Professional to use to present the holistic risks and benefits of this make/buy decision to the executive team?
Answer and explanation
Correct answer: D
According to the CSQP Body of Knowledge (Domain I.C.3), a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is the optimal tool for evaluating make/buy decisions as it holistically captures internal capabilities (high overhead vs mature quality) against external capabilities (cost reduction vs lack of medical experience). While FMEA and SIPOC are useful technical tools, they do not capture the strategic business elements required for executive make/buy decisions.
