Using publicly available financial data to measure production depth in the automobile industry

Often companies must make the decision whether or not to manufacture a part on their own or to outsource the manufacturing of that part to a supplier. The results of these "make-or-buy" decisions have impacts on that company's manufacturing competencies and strategies moving forward [1]. They also compound over time to define that company's production depth. A company's production depth is defined as the ratio of value-adding content that a company creates itself [2]. While the impact of "make-or-buy" decisions have clear implications on a company's long-term strategies, the relationship between a company's production depth and its profitability has not yet been studied as there is not a defined way to measure production depth from a company's publicly available financial data. This study examines two different methods of estimating production depth using publicly available financial data.

Name thesis:degree_name

Bachelor

Department dc:contributor.department

Massachusetts Institute of Technology. Department of Mechanical Engineering

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2020

Author dc:creator

• Legg, Cole C.

Advisor dc:contributor.advisor

• Jung-Hoon Chun.

• Mechanical Engineering.

Statement dc:rights

• MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/127930

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/127930