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 abstracting 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 Oceanic. Has experience with the vessel size requested by Oceanic. 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 Oceanic demands. One employee from each of the key departments will head the project from start to finish. Nuclear Vessel Inc. ‘s’ Nil be able to meet shipping requirements of six months but the only guarantee there work not the materials. II. Major Problems: lack Tool, the Supply Chain Manager of Oceanic must decide which company will manufacture the pressure vessel. The two companies that he must choose from are Atomic Products Company and Nuclear Vessels, Inc.
Both companies can meet there pricing requirements as well as meet all shipping requirements as well. The big problem is two engineers for Oceanic cannot agree of which company to use. Mr.. Role must decide which company will provide the best product for there Oceanic. Rhea lack of in-depth analysis of certain areas in the two companies where not performed during the visits to Atomic Products Company and Nuclear Vessels, Inc. Certain discussion should have ensued pertaining to specifications of cost including he sources to these costs so the team would nave no doubt t bettor leaving.
More in- depth look at the companies operation processes should have been inquired during there two visits to both companies. Ill. Possible Solutions: a. Oceanic selects Atomic Products Company to manufacture the needed pressure diesel with these advantages in selecting them. They have adequate facilities to accommodate the manufacturing of the vessel. Have the ability to fabricate everything in their own facility with using a subcontractor and able to make the 6 month delivery date without no engineering changes. Atomic Products Company has enough workforces to complete the Job plus up to date equipment.
The labor and equipment backed by the company’s guarantee. Atomic Products Company seems to have the most update technology and machine for there needs. Atomic Products Company disadvantages there strains between managers and employees now and in the past. The president of Atomic Products Company provided vague answers suggesting failure of been able to provide the needed vessel parts for your project. There are cost comparisons, such as shop rate, materials, overhead costs are exorbitant, and they have no prior experience in making the new size of the vessel needed. B. A.
Oceanic selects Nuclear Vessels to manufacture the needed pressure lessee with these advantages in selecting them. Nuclear Vessels has experience- building pressure vessels the size equivalent to Oceanic is asking for. Nuclear Vessels looks like they use a cross- functional team, which includes supply, expediting, quality control, and scheduling assigned to a task force headed by a project engineer. The employees appear pleased with their occupations and with the company. The workers for every department has one dedicated supervisory from start to finish providing better quality assurance for every Job they are doing.
Nuclear Vessels disadvantages the company’s machines were of considerable age and not of large capacity, but adequate for the Job. Nuclear Vessels will have to subcontract some of the work. Nuclear Vessels has bad heating, lighting, ventilation, and cleanliness that add to higher cost due to more hours need by workers. IV. Choice and Rationale: My choice would be B Nuclear Vessels, Inc. Despite all things being equal between Atomic Products Co and Nuclear Vessels Inc… Nuclear has experiences from their prior work on equivalent sized vessels.
Nuclear Vessels are serious about there work and will complete the vessels in the needed timeshare. Nuclear Vessels has older machinery but use cross-functional team to make sure new vessel manufactured accurately will meet the need timeshare. Nuclear Vessels has higher costs but the Nor is guaranteed but use good supplier for there materials. Although Atomic Products submitted a much lower financial proposal to Oceanic to the completed lessees. Atomic appears lacking good supervision, hardworking employees, a lack of evidence in product control, and inexact of their actual costs proposal.
Atomic Product does not have the experience fabricating such a large vessel which can cause errors to occur which can delay Oceanic. Oceanic visits to Atomic Products facility was very impressive but President seem to go all out to try and get this contract which left bad taste in Oceanic mouth. Reticence: rut, Patronage, and Pinker, Richard (2010). Supply management (8th De. ). 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).