Case Study 3: Selection of Pressure Vessel Manufacturer
Case Name: Selection of Pressure Vessel Manufacturer I. Major Facts: The engineering department hand-carried a purchase requisition for a pressure vessel to Jack Toole, supply manager, Oceanics, Inc. Quickly Jack went to work to get quotes from twenty different manufactures. Once they received back the quotes Jack narrowed down the potential suppliers to two companies. The two likely suppliers are Nuclear Vessels and Atomic Products Company. The advantages and the disadvantages seem to be about the same between Nuclear Vessels and Atomic Products Company. A trip to each one of the companies will be necessary to make the best decision before deciding who should get the upcoming contract.
Jack found the following facts about Atomic Products Company.
• Contract price would be a cost-plus-a-fixed fee contract.
• Shop facilities meet the specifications to meet contract needs.
• Atomic Products Co. has not made the vessels of the requested size before, but does have the required equipment to do the job.
• Atomic Products Co. alleges to have the ability to fabricate the need materials within facility without resorting to subcontracting parts out.
• Atomic Products Co., will be able to ship the material by rail in next six months if no engineering design changes are needed.
• The company guarantees materials and workmanship will meet the specification that are requires for the upcoming contract if they are giving it.
Jack found the following facts about Nuclear Vessels Company.
• Offers sufficient shop facilities to manufacture the needed material and will allow visit from Oceanics.
• Has experience with the vessel size requested by Oceanics.
• The majority of the work will be accomplished at Nuclear Vessel Inc.’s’ facility; but they will have to subcontract out some the material but will have Key supervisor watch over the whole project with subcontractors to make sure they meet Oceanics demands.
• One employee from each of the key
Jack found the following facts about Atomic Products Company.
• Contract price would be a cost-plus-a-fixed fee contract.
• Shop facilities meet the specifications to meet contract needs.
• Atomic Products Co. has not made the vessels of the requested size before, but does have the required equipment to do the job.
• Atomic Products Co. alleges to have the ability to fabricate the need materials within facility without resorting to subcontracting parts out.
• Atomic Products Co., will be able to ship the material by rail in next six months if no engineering design changes are needed.
• The company guarantees materials and workmanship will meet the specification that are requires for the upcoming contract if they are giving it.
Jack found the following facts about Nuclear Vessels Company.
• Offers sufficient shop facilities to manufacture the needed material and will allow visit from Oceanics.
• Has experience with the vessel size requested by Oceanics.
• The majority of the work will be accomplished at Nuclear Vessel Inc.’s’ facility; but they will have to subcontract out some the material but will have Key supervisor watch over the whole project with subcontractors to make sure they meet Oceanics demands.
• One employee from each of the key
References: Burt, Petcavage, and Pinkerton, Richard (2010). Supply management (8th ed.). Boston: McGraw-Hill Irwin. Hood, J. (n.d.). Institute for Supply Management and the School of Government and Business Administration. George Washington University. (Case Study).