Oceanics Case Study
Date: From: To: Subject:
November 17, 2011 Andy Moon – A00838117 Mr. Karl Fichter Case Study 2 – Pressure Vessel
1. Problem The supply manager of Oceanics Inc., Jack Toole, is faced with a situation in decisionmaking for purchasing one manufactured pressure vessel from either one of the two suppliers, Atomic Products Company and Nuclear Vessels, Inc., who will provide the best value. While Jack needs to choose the best value from a purchasing standpoint, he also needs to choose a supplier that satisfies the requisitioner of the pressure vessel, the engineering department of Oceanics, Inc. Another critical issue to be considered would be that pressure vessels are closed containers designed to hold gases or liquids at substantially higher pressure than the atmospheric pressure (Wikipedia, 2011). Pressure vessels are dangerous objects sensitive to pressure differentiations, at which could cause fatal accidents. Therefore, Jack carries the responsibility in acquiring a capital asset that could possibly affect other people’s lives. 2. Summary The engineering department of Oceanics, Inc., had given out a purchase requisition of a pressure vessel to the supply manager, Jack Toole. Out of twenty suppliers, eighteen submitted their proposals, and only two suppliers were left after a preliminary evaluation. The two suppliers, Atomic Products and Nuclear Vessels, differentiated in price, shop facilities, past experience, subcontracting, organization, delivery, and guarantee. After Jack and Oceanics’ engineer, Mr. Holpine and the manufacturing engineer, Mr. Grinn, visited the two suppliers’ plant sites, Mr. Holpine and Mr. Grinn ended up having differing arguments in choosing the better supplier. Jack’s objective is to satisfy Oceanics’ engineering department’s requisition specifications while choosing the supplier with the best value from a purchasing perspective. 3. Site Observations Jack, Mr. Holpine, and Mr. Grinn focused in observing the age, quality, and
November 17, 2011 Andy Moon – A00838117 Mr. Karl Fichter Case Study 2 – Pressure Vessel
1. Problem The supply manager of Oceanics Inc., Jack Toole, is faced with a situation in decisionmaking for purchasing one manufactured pressure vessel from either one of the two suppliers, Atomic Products Company and Nuclear Vessels, Inc., who will provide the best value. While Jack needs to choose the best value from a purchasing standpoint, he also needs to choose a supplier that satisfies the requisitioner of the pressure vessel, the engineering department of Oceanics, Inc. Another critical issue to be considered would be that pressure vessels are closed containers designed to hold gases or liquids at substantially higher pressure than the atmospheric pressure (Wikipedia, 2011). Pressure vessels are dangerous objects sensitive to pressure differentiations, at which could cause fatal accidents. Therefore, Jack carries the responsibility in acquiring a capital asset that could possibly affect other people’s lives. 2. Summary The engineering department of Oceanics, Inc., had given out a purchase requisition of a pressure vessel to the supply manager, Jack Toole. Out of twenty suppliers, eighteen submitted their proposals, and only two suppliers were left after a preliminary evaluation. The two suppliers, Atomic Products and Nuclear Vessels, differentiated in price, shop facilities, past experience, subcontracting, organization, delivery, and guarantee. After Jack and Oceanics’ engineer, Mr. Holpine and the manufacturing engineer, Mr. Grinn, visited the two suppliers’ plant sites, Mr. Holpine and Mr. Grinn ended up having differing arguments in choosing the better supplier. Jack’s objective is to satisfy Oceanics’ engineering department’s requisition specifications while choosing the supplier with the best value from a purchasing perspective. 3. Site Observations Jack, Mr. Holpine, and Mr. Grinn focused in observing the age, quality, and