Make or Buy

The make-or-buy decision is one of the most consequential calls in operations — and one of the most commonly botched. Breaking even at current volume sounds compelling, but it ignores ramp risk, opportunity cost, and the organizational capability required to run a factory. The right question is never "can we break even?" — it's "what happens if volume doesn't grow as projected, and how long will we be underwater while we wait to find out?"