During the two visits, the Oceanics group should have investigated the management team of the manufacturer’s supply chain or other activities that relate to the flow of incoming materials required to complete the vessel. The Oceanics group should ensure that they find a manufacturer that has the essential materials either acquired or plan to acquire in order to produce the manufacturing of the vessel conforms to all the specifications. Efficient supply chain will ensure smooth movement of work between divisions without causing delay.
Another area of great concern that the Oceanics group should investigate is the engineering work facility, particularly those related to manufacturing of the vessel. The team should ensure that the manufacturer has quality facilities necessary to complete the vessel and deliver within the stipulated deadline. Some manufacturers lack the capacity to hand manufacturing of large vessels due to lack of skills and other materials required for the process. It is important for Oceanics team to ensure that the manufacturer for the vessel has the capability to fabricate the entire vessel either directly or indirectly through subcontracting to verified subcontractors (Leeman, 2010). This will ensure timely delivery of quality vessel that meet all the specification of Oceanics.
Evaluate each supplier on each of the above items using information obtained in the field visits.
Atomic Products Company
Atomic Products Company has an excellent ventilation and lighting arrangement along the aisles. In addition, the overall appearance of the building was extremely neat and well ordered. The company has 2,000 employees and the floor area covers an area of 47,000 square feet. Employees at Atomic Products Company are members of a union and have had several strikes over the past few years.
Atomic Products Company has a well-equipped modern laboratories and good inspection facilities. The company’s chemical and metallurgical laboratories are well staffed and have the capability to provide Oceanics with adequate test specimens according to specifications. This will enable to Atomic Products Company to guarantee workmanship and materials in accordance with the specifications provided in the proposal.
Nuclear Vessels Company
In appearance, lighting, heating, and cleanliness conditions at Nuclear Vessels Company were not as adequate as Atomic Products Company. However, Nuclear Vessels has a better system for control of incoming materials and each material is marked for the project of its intended use. This would help control possibility of defective materials that could get into the pressure vessel.
The condition of machines at the plant were of considerable age and not of large capacity but adequate to complete the job. The firm has a well-coordinated supply chain, including management and the plant. Effective coordination and control among people from expediting, supply, scheduling, and quality control ensures delivery of quality products. The engineer gets updates on a daily basis.
Based on the face value of the written proposals, which company appeared to submit the better offer?
Based on the face value of the written proposals, the Atomic Products Company appeared to have submitted an attractive order because the numbers presented in the case study outlining the total price are considerably cheaper. In addition, Atomic Products Company has the capacity to fabricate the entire vessel without subcontracting any component.
Based on the proposal plus information obtained from the case history, which company is likely to be the better supplier?
Although Atomic Products appear to submit the better offer at face value, Nuclear Vessels Company is likely the best suppliers based on the proposal plus information obtained from the case history. From the information obtained from the case history, Nuclear Vessels should be awarded the contract because of their remarkable enthusiasm to perform the job, their past manufacturing experience in manufacturing pressure vessels of equals size, and their previous experience with Oceanics.
Nuclear Vessels had previously worked with Oceanics and both have enjoyed a cordial relationship. Oceanics had always received quality products from Nuclear Vessels and this made Nuclear Vessels a better supplier. Oceanic Nuclear Vessels had experience constructing one vessel considerably larger than the one required by Oceanics. The experience gained in the production of a larger vessel made them adopt a closer follow-up. Nuclear Vessels also had an adequate room for locating a cleaning room in contrast to Atomic Productions that had none.
Nuclear Vessels appeared to have an effective control between management and the shop. For example, each project manager headed a team of one member each from expediting, supply, scheduling, and quality control in order to work fully. The project team was responsible for following the entire project and informing the project manager on a daily basis.
What do you recommend?
An organization seeking the services of a supplier must evaluate its needs before settling on the manufacturer that can meet all those needs (Porter, 1985). This does not only help the organization, but potential suppliers will likely find the information useful in drafting proposals. From the case study, Nuclear Vessels offers the most attractive bid for Oceanics. This is because Nuclear Vessels have experience, expertise, capacity, and worked with oceanic in the past. The company is also enthusiastic on the new assignment and has a well-coordinated team that can execute the process within the stipulated period. As such, Nuclear Vessels should be given the contract because of the enthusiasm execute the job, their experience in handling such job, and previous experience with Oceanics. Fact-finding mission on suppliers requires an investigatory trip to each of the potential companies to ensure precise selection.
Leeman, J. (2010). Supply chain management: fast, flexible supply chains in manufacturing and retailing. Norderstedt: Books on Demand.
Porter, M.E. (1985). The Competitive Advantage: Creating and Sustaining Superior Performance. New York, NY: The Free Press.