Fabtek (A) Case Analysis (Harvard Business School 9-592-095)
Background and Issues
Fabtek the first company to provide titanium products for industrial use had create a competitive advantage on the process of welding, heat treat and thermal cutting of this metal on the Philadelphia and US titanium business market.
At this moment the company is working hard to rebuild a good image in the market after some customers dissatisfaction with late job deliveries. To resolve it is important to increase the communication and cooperation between the engineer department and manufacturing. Other issue is to keep and increase the welding capabilities in the company.
The company face four big possible new orders. Choosing the right orders are critical to continue the company expansion and cover of new markets.
Criteria to select new orders
Although titanium had several fabrication peculiarities that required special skills, some operations - such a sheraring, machine work and forming - closely paralleled those used in precision fabrication of certain stainless steels. Heat treatment, thermal cutting and especially welding were generally considered the most difficult operations. Fabtek used its strong competence in welding as a major selling point, because that is good to have new jobs that used challenging in welding is important to choose new jobs that keep this good image of high quality in the market.
To increase the use of common resources, long run jobs with high concentration of welding. Possible future repetition are more desirable, because this can minimize engineering and other initial costs and create standard products that uses the welding competitive advantage from Fabtek
Fabtek has a concentration of business in few customers, and is important to use new jobs to open new opportunities for the company
Criteria:
1. The job is technically welding challenging
2. The jobs with welding, long run and repetitive are more desirable
3. The job fits with Fabtek's high-quality image and capabilities
4. Market area with
Fabtek the first company to provide titanium products for industrial use had create a competitive advantage on the process of welding, heat treat and thermal cutting of this metal on the Philadelphia and US titanium business market.
At this moment the company is working hard to rebuild a good image in the market after some customers dissatisfaction with late job deliveries. To resolve it is important to increase the communication and cooperation between the engineer department and manufacturing. Other issue is to keep and increase the welding capabilities in the company.
The company face four big possible new orders. Choosing the right orders are critical to continue the company expansion and cover of new markets.
Criteria to select new orders
Although titanium had several fabrication peculiarities that required special skills, some operations - such a sheraring, machine work and forming - closely paralleled those used in precision fabrication of certain stainless steels. Heat treatment, thermal cutting and especially welding were generally considered the most difficult operations. Fabtek used its strong competence in welding as a major selling point, because that is good to have new jobs that used challenging in welding is important to choose new jobs that keep this good image of high quality in the market.
To increase the use of common resources, long run jobs with high concentration of welding. Possible future repetition are more desirable, because this can minimize engineering and other initial costs and create standard products that uses the welding competitive advantage from Fabtek
Fabtek has a concentration of business in few customers, and is important to use new jobs to open new opportunities for the company
Criteria:
1. The job is technically welding challenging
2. The jobs with welding, long run and repetitive are more desirable
3. The job fits with Fabtek's high-quality image and capabilities
4. Market area with