Analysis, Synthesis, and Evaluation of the Eagle Manufacturing Company

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Case Name: Analysis, Synthesis, and Evaluation of the Eagle Manufacturing Company

I.Major Facts
A. Ted Jones has been the supply manager for the Eagle Manufacturing Company for the past two years. B. Although Ted Jones has a great team of buyers, expediters, and support staff who carry out top notch work, the morale in Ted’s department is low. i. One of the senior buyer’s in Ted’s department, Bill Wilson, submitted his resignation. Bill accepted a position at another company where he will be paid substantially more although he will be doing the same work and will be under the same amount of stress. C. The previous month’s performance data for the office shows: 743 transactions, 98 percent with delivery on or before specified dates, 87 percent of supplies and material purchases at or within 5 percent of target price, 9 percent late deliveries, and a 5 percent rejection rate of materials and supplies received. D. A purchase request for a new robot, that according to estimates would cost $5.5 million, was submitted by the maintenance department. It was supposed to be delivered and operational in seven months and only one source of supply was able to meet the delivery date. a. An experienced buyer in Ted’s department, John McCauly, was negotiating with Fenwick Electronics for the robot. Although the maintenance department proposed $5.5 million, Fenwick proposed $7.2 million. Because of time, Fenwick was the sole source for obtaining the robot. b. John learned that the $5.5 million estimate on the robot was in reality not an estimate but the amount budgeted for the machine last year. E. Several members from other departments of Eagle Manufacturing Company are not satisfied with Ted and the supply management department’s work. c. The Vice President of Operations, Tim Raines, and the Vice President of Marketing, Ron Hankins, were not happy that operations had run out of parts that week. Also the quality of the...
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