AN EXPERT SYSTEM FOR MAKE OR BUY DECISION IN MANUFACTURING INDUSTRY

A computer-based system is designed to assist manufacturing industries in the make or buy decision, which is arguably the most fundamental component of manufacturing strategy. A model of make or buy decision was developed through review of literature and discussion with industry people. The system employs both case-based reasoning (CBR) and decision support system components. As part of the development process, interviews were conducted with managers in valve manufacturing industry in order to determine current make or buy practice and elicit opinions on how the decision-making process would be enhanced. The model consists of various checks as technology, capacity, sorting of parts by cost in descending and allocating capacity for parts which give maximum cost saving as first. A Knowledge Based System (KBS) was developed which incorporates these checks into the make buy decision. This system is used for analysis of capacity of machine used and idle capacity remaining for better performance of the industry. Expert system developed is also used to take decision about a new part /product to be manufactured inhouse or bought outside and save the time in decision making