The major facts surrounding the Eagle Manufacturing case are varied, at best. We know the “estimate” for the maintenance department robot came in well under the proposed price. We also know that, for the time being, productivity is affected due to various budgetary and operational concerns. Finally, we know that the communication levels and productive aspects of each individual department are not well. Major Problems
There are multiple major problems involving all facets of the Eagle Manufacturing Company. The primary problem, in my opinion, is the simple lack of communication between department heads, management and employees, and just within the company as a whole. The fact that the supply chain management department head has to explain attrition rates and budget cuts to operations and administration rather than that coming from upper-level management is very indicative of communication issues.
It appears another major problem in the company is the lack of adequate procurement lead times. The lead times given for the maintenance robot were not adequate for a purchase of that magnitude. As such, this drives down any negotiating stance when placed in the sole source position. When competitive pricing is not available to promote lower prices and better negotiating stances, the employees feel the frustration of losing money by the handfuls.
The frustration felt by employees leads to the final major problem Eagle is experiencing: low morale. When placed in positions where there is not chance for a win-win outcome, employees (buyers) will feel the pressure more than most. With Bill Wilson’s departure, Ted was faced with a large gap at the senior buyer level that focused more pressure on the journeymen purchasers. Possible Solutions/Alternatives
Ted faces a myriad of problems. However, they are all able to be overcome. In the aspects of communication, Ted must ensure the other departments are aware of issues that...