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."
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