salesXxmtr^t as written? Why?
1 .Does it make financial sense to outsource painting of housings to Greven? What reasons, other than financial factors, need to be taken into account in this decision? Do you think Glenn should get prices from other suppliers?
What do you want to do about the family of parts that did not pass the quality tests? Do you think that Rondot should outsource their painting operations completely and dispose of the equipment?
•onment and manager to sat down to should make osts by out- igement was ket share.
Automotive •gic purchased office in lotiating ma-new product ng organiza-lid-line basis basis. Plant aterials man-lirements and :rtment at the ling two buy-nn had joined
and the rest in overhead, including expenses such as taxes, energy, maintenance, and charges from corporate office." GREVEN E-COATING
Glenn had been approached by an enterprising local vendor several months back, inquiring about Rondot's painting requirements. Cathy Stirling, representing Greven E-Coating "Company (Greven) proposed that she prepare samples for each family of housings and provide cost estimates to Glenn. Eager to explore cost savings opportunities, Glenn readily agreed. Electrocoating, or e-coating, uses a system whereby a DC electrical charge is applied to a metal part immersed in a bath of oppositely charged paint particles. The metal part attracts the paint particles, forming an even film over the entire surface, until the coating reaches the desired thickness. E-coating was generally considered more cost efficient compared to traditional wet paint systems. Samples from Greven were sent to Rondot's quality control department for testing and the results seemed encouraging. The tests indicated that parts for five of the six families of housings, representing approximately 60 percent of the Jackson plant's housing volume, could be converted to e-coating using Greven at a cost of 150 each. One family of housings failed the tests because of problems with the method of adhering a magnet to the housing. Rondot's assembly process required a magnet to be attached to the top inner portion of each housing using either a cold or hot bonding adhesion process. The use of either method was dependent on product design,
:h of the six -,t the Jackson
large stamp-stamping, the osphate treat-iry specifica-»ing had to be •ray testing. involved a been installed tpproximately number of up-with evolving .en Lee, Glenn •perations cost ) Glenn: "We il, 30 in labor, Case 5-3
Alicia Won|y Corporate Supply JClanager, Thain Foods Limited, want&d to prepare a/proposal to manufacture mustard in-housk Mustard,y£n important ingredient in many of the compahy's proamcts, was currently purchased from an outside suppjie/ She hoped a comprehensive proposal could be prep)^ed in one-month's time for the CEO's approval. GENERAL COMPANY^ACKGROUND
Thain Foods/Limited (TFL) had B^en in business for more than 3XJ years. Its products included a wide range of syrups, fuages, cone dips, sauces, mayonhajse, and salad
dressings. Its^eustomers were major food chains, hotels, and restaurants in-North America and/Europe. TFL believed *in continuous /mproveqient to its operations. Over the l^st two year/ it invested more than $2 million in plant facilities, the/bulk of it new, state-of-the-art process equipment and/process control. All production and process contro^frfhctions were computerized for maximum efficiency. TFL employed about 120 people. It had a corporate
structure of CEO; president; executive vice president,
domestic sales; and national accoNmt manager and used
a network of food.fcrokers who sotoj and promoted its
Brian expected that B&L would have to arrange for extra storage space if he decided to outsource the outrigger bracket to Mayes, who had quoted delivery lead time of four weeks. Because Mayes was local and had a good track record, Brian didn't expect the need to...
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