A Model for Outsourcing the Decisions of Manufacturing in a Governmental Organization

Document Type : Original Article

Authors

Malekashtar University of Technology

Abstract

Governmental organizations must change to agile organizations in order to achieve their goals and missions. According to the Article 44 of Iran's Constitution, one of the main policies of governmental organizations towards becoming agile organizations is to focus on core missions and to outsource technology and activities using the whole national research and industrial capacity. So, the government always has to deal with the issues concerning outsourcing decisions — which technologies/activities or products are outsourced and which are produced inside the organization? How much is the scope of outsourcing? And what is the best provider for outsourcing? This study investigates the outsourcing decision models and finally with the aids of AHP approach and Expert Choice software, presents a model for decisions on outsourcing, making or buying. Decision process in the proposed model deals first with the outsourcing of the whole system, then its components. Decision-making is done in three phases. In the first phase, decision-makings are based on the strategic importance of standards, technical knowledge maintenance and the security of information. In the second phase, decision-makings are founded on production in the internal network or external network based on the criteria of quality, price and delivery. In the third phase, final decision-makings are based on capacity. This model is tested on a real case and the results indicate that it is consistent with the experts' opinions.

Keywords

References

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History

  • Receive Date: 04 July 2012
  • Accept Date: 05 May 2013

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