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your project scope calls for a piece of software that will control a valve in a pressurized pipeline. your company has some experience with this type of software, but resources are tight, and it is not part of your company's core competency. you are considering involving other sellers but want to decide whether it is a better decision to produce this within your company or source it externally. what activity are you performing?

User Ozanstats
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Final answer:

The activity being performed is make-or-buy analysis, which is an evaluation within the engineering design process determining whether to produce software internally or source it externally, considering factors like budget constraints, core competencies, and outsourcing options.

Step-by-step explanation:

When considering whether to produce software in-house or source it externally, you are engaging in an activity referred to as make-or-buy analysis. This is a critical part of the engineering design process which involves weighing the costs, benefits, risks, and capabilities associated with both options. It considers factors such as budget for product development, available expertise, resource allocation, and timelines.

The make-or-buy decision can be influenced by whether resources are available in-house, whether the task is within the core competencies of the company, and potential cost savings. If the decision is to buy, then the company may consider outsourcing or offshoring as viable strategies. In either case, the company would need to evaluate solutions and potential suppliers, considering constraints like quality, cost, and delivery times.

As part of this activity, the company would also prepare for implementation, which involves creating a manufacturing system, identifying suppliers, and establishing sales and marketing strategies if the software is to be commercialized. Multitasking and meeting task deadlines are essential components in ensuring the success and timeliness of product development.

User Sean Howell
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