Eagle MFG Case Study
CASE STUDY ANALYSIS
Case Name: EAGLE MFG. CO.
I. Major Facts:
A. Ted Jones is the Head of Eagle Manufacturing Supply Management
B. Eagle Manufacturing pays Mr. Jones a large salary and management expects a very large return on their investment in his salary.
C. Mr. Jones has been the head of supply management for two years.
D. Mr. Jones's senior buyer quit and is now working for another manufacturing company.
E. Maintenance department submitted a request to purchase a robot with a cost of $5.5 million on the 29th of September.
F. On the 7th h of August the VP of operations made a comment about running out of parts for production in the staff meeting.
G. On the 14th of August the VP of operations commented that the parts being purchased were of poor quality deceasing production.
H. The president's secretary called twice about the poor service of the janitor's service contract.
I. Mary Jacobs the head of administration was also complained about the quality of reproduction paper.
J. The robot maintenance wanted was sole sourced from Fenwick Electronics and made the proposed $5.5 million balloon to $7.2 million.
K. AUG Performance Data:
a. 743 transactions
b. 98% delivery on time or before
c. 87% supplies and material purchase are or within 5% of target price
d. 9% late deliveries
e. 5% rejection rate of materials and supplies received
II. Major Problem
Eagle Manufacturing Company does not accurately forecast and develop the total requirements that are necessary to neither maintain the current pace in order to increase profit. Lack of communication between department heads is a contributing factor. Knowledge of how items are procured and sourced in every department is lacking.
III. Possible Solutions
A. Forecasting Meetings quarterly
Have a forecasting meeting quarterly for every department where each department will forecast there requirements for the upcoming quarter.
B. Making each department write their own
Case Name: EAGLE MFG. CO.
I. Major Facts:
A. Ted Jones is the Head of Eagle Manufacturing Supply Management
B. Eagle Manufacturing pays Mr. Jones a large salary and management expects a very large return on their investment in his salary.
C. Mr. Jones has been the head of supply management for two years.
D. Mr. Jones's senior buyer quit and is now working for another manufacturing company.
E. Maintenance department submitted a request to purchase a robot with a cost of $5.5 million on the 29th of September.
F. On the 7th h of August the VP of operations made a comment about running out of parts for production in the staff meeting.
G. On the 14th of August the VP of operations commented that the parts being purchased were of poor quality deceasing production.
H. The president's secretary called twice about the poor service of the janitor's service contract.
I. Mary Jacobs the head of administration was also complained about the quality of reproduction paper.
J. The robot maintenance wanted was sole sourced from Fenwick Electronics and made the proposed $5.5 million balloon to $7.2 million.
K. AUG Performance Data:
a. 743 transactions
b. 98% delivery on time or before
c. 87% supplies and material purchase are or within 5% of target price
d. 9% late deliveries
e. 5% rejection rate of materials and supplies received
II. Major Problem
Eagle Manufacturing Company does not accurately forecast and develop the total requirements that are necessary to neither maintain the current pace in order to increase profit. Lack of communication between department heads is a contributing factor. Knowledge of how items are procured and sourced in every department is lacking.
III. Possible Solutions
A. Forecasting Meetings quarterly
Have a forecasting meeting quarterly for every department where each department will forecast there requirements for the upcoming quarter.
B. Making each department write their own