Subject - Purchasing
Evaluation Identification & Description- correctly identifies missed supplier evaluation site components and; correctly details and thoroughly describes two or more evaluation method Avion Inc(Case Study) could have applied to evaluate supplier site to address missing components. Methods are supported with examples and/or valid references/facts.
Case study
1 Avion, Inc.
Susan Dey and Bill Mifflin, procurement managers at Avion, Inc.,
sat across from
each other and reviewed a troubling performance report concerning a
key supplier,
Foster Technologies. The report detailed the deteriorating
performance of Foster
Technologies in the areas of material quality and on-time
delivery.
Susan: I don’t believe what I am seeing. This supplier was clearly
a star when we
performed our supplier visits before awarding the contract for the
new
Amrod product line.
Bill: I’m not pleased. I was on the team that performed the audit
and site visit.
Foster’s management was so smooth—they indicated they could meet
all
our requirements. I feel like we’ve been misled by this
supplier.
Susan: Didn’t you look at their processes and quality
systems?
Bill: Sure we did. Everything checked out fine. But now every other
shipment
has some problem, and the delays are hurting our ability to get our
product
to our customers. What really struck us about this supplier was how
innovative
they were. Foster’s biggest drawback was their size—they lacked
some
depth at key manufacturing engineering positions. Maybe that’s why
they
are having problems. It could be that someone has left the
company.
Susan: We are going to have to address these problems
quickly.
Bill: I’ll tell you what I am going to recommend. We should begin
immediately
to look for another supplier. I never was a fan of these
single-source contracts.
They leave us open to too much risk.
Susan: But won’t that take a long time?
Bill: Sure. We’ll have to perform another supplier search with team
visits. New
tooling could really cost, too. This could take months.
Susan: Has anyone talked with the supplier about these
problems?
Bill: Kevin went over personally today and talked with the
production manager.
He didn’t have much time to explain, but he indicated on the phone
that
Foster’s production manager said we should accept responsibility
for a
good part of the problems that are occurring!
Susan: Why should we? I think they are just trying to shift the
blame for their
poor performance.
At this point, Kevin O’Donnell, another procurement manager,
entered the room.
Bill: Kevin, glad you’re here. We were just discussing how Foster
is trying to
blame us for their problems. I think we should dump them
fast!
Kevin: Yeah, well, I’ve got news for you two. I think Foster’s
production manager
is correct. I think I would be frustrated with us, too!
Susan: What are you talking about?
Kevin: I spent a good part of the day over at Foster and
learned some interesting
things. For example, do either of you remember what we told Foster
the
monthly volume requirements for the product would be?
Bill: I remember exactly. The volumes were projected to be 2,500
units a month.
So what’s the problem?
Kevin: We need to talk with our production group more often. The
monthly volumes
are now over 4,000 units a month! And not only that, our
production
group now wants material within 10 days of a material release
rather than
two weeks. We have also been changing the final material release
quantities
right up to the last minute before delivery.
Bill: Uh oh. I remember on our site visit that the most their
production system
could handle was 3,500 units a month. And a two-week lead time
was
about as low as they could go.
Susan: But why didn’t they inform us that these changes were
causing problems?
They still have some explaining to do.
Kevin: Apparently they tried. What did your team tell this supplier
about communicating
with us after you finished negotiating the contract?
Bill: We said that any operational problems or issues have to go
through our
materials management people. The team was responsible for
evaluating and
selecting the supplier, and then negotiating the agreement.
Kevin: Foster’s production manager produced a log detailing seven
memos and letters
outlining the impact of our production and scheduling changes
on
their operation. He also called us several times with no response.
Each of
these inquiries received little attention on the part of our
materials group.
I’m not sure how fond Foster is of us as a customer. I think they
are anxious
for this contract to wind down so they can dump us!
Susan: What do we do now?
Some of the evaluation methods, which can be used by the company to evaluate the supplier site are:
Subject - Purchasing Evaluation Identification & Description- correctly identifies missed supplier evaluation site components and; correctly...
Questions to be answered In reference to the Avion Inc case study, identify and summarize the reasons it is important for a firm to evaluate its suppliers. Identify and describe an effective supplier evaluation method the firm in the Avion Inc case study could have used to evaluate its supplier. Explain why your selected supplier evaluation method would work for said firm. Define performance measurement and explain the role of performance measurement in managing supply chain activities. Describe the methods...
Case Study 815 Susan: What are you talking about? Kevin: I spent a good part of the day over at Foster and learned some interesting things. For example, do either of you remember what we told Foster the monthly volume requirements for the product would be? Bill: I remember exactly. The volumes were projected to be 2,500 units a month. So what's the problem? Kevin: We need to talk with our production group more often. The monthly volumes are now...
Are Drivers or Smartphones to Blame? Top-level leaders at a company that manufactures smartphones, tablet computers, and portable music players, among other electronic devices held a one-day retreat. The purpose was to think though how well the company was contributing to society. Technology chief, Olivia, commented, "I am very proud of us as a company. Think of what we have done for the world. Because of our products, people are more productive, smarter, and happier. At any time of the...
Kevin Lowe is depressed. He has been with the CPA firm Stooges LLP for only three months. Yet the partners in charge of the firm—Bo Chambers and his brother, Moe—have asked for a “sit-down.” Here’s how it goes: “Kevin, we asked to see you because your time reports indicate that it takes you 50 percent longer to complete audit work than your predecessor,” Moe said. “Well, I am new and still learning on the job,” replied Lowe. “That’s true,” Bo...
What are the major areas of change from the old design to the new design? What do you think the major concerns will be of employees and managers in the new design? Use the star model to identify the transitions at each point of the star. Case Study 4: Reorganizing the Finance Department: Managing Change and Transitions Read the finance department case and consider the challenges you might anticipate during this reorganization. Develop a transition plan that addresses the following...
CASE STUDY – THE RELUCTANT PROJECT TEAM JJ Okocha started a new job 6 months ago. His new position was project manager. At first, he had starts in his eyes about becoming the best project manager that his company had ever seen. Now he is not sure if project management is worth the effort. He made an appointment to see Phil Davies the director of project management. JJ Okocha: “Phil I am a little unhappy with the way things are...
CLARK FAUCET COMPANY BACKGROUND By 1999, Clark Faucet Company had grown into the third largest supplier of faucets for both commercial and home use. Competition was fierce. Consumers would evaluate faucets on artistic design and quality. Each faucet had to be available in at least twenty-five different colors. Commercial buyers seemed more interested in the cost than the average consumer, who viewed the faucet as an object of art, irrespective of price. Clark Faucet Company did not spend a great...
Show Work Please. What price do you think Deere should be paying Saunders for this product? In other words, what is your estimated cost for the gatherer chain? und- year teadil ата The hib et atch the price the urren set by a ormpetitor was bas INANCIAL ANALYSIS Jim arranged a meeting the following day with Susan Tessier, from purchasing, and Jose da Costa, from engineer- ing. During the meeting, Jim laid a gatherer chain on the conference room table...
Case 1-7 Eating Time Kevin Lowe is depressed. He has been with the CPA firm Stooges LLP for only three months. Yet the partners in charge of the firm-Bo Chambers and his brother, Moe-have asked for a sit-down." Here's how it goes: “Kevin, we asked to see you because your time reports indicate that it takes you 50 percent longer to complete audit work than your predecessor," Moe said. "Well, I am new and still learning on the job," replied...
Question to the Scenario below: Keeping in mind that it takes time/energy to implement systems to retrieve data, which HR metrics should start Paul capturing? Scenario: “John, our production numbers are getting worse,” said Roy, who is John’s manager at the small plastic molding company. “What’s going on?” “ We've laid off several people in my area,” replied John. “Can't you get them to work harder? asked Roy. “Before the layoff, we had a lot of people quitting,” said John....