Camp Bowie Technologies, INC
John Lane is required to analyze and recommend a replacement cell phone for the field technicians to use onthe job. In order to accomplish this project, the need to develop a methodology to assigning a comparativevalue to each available phone for the purpose of comparison has risen. As John Lane proceeded with this task,a wall has appeared in front of him blocking his path.
Questions:
1. What characteristics of the market concerning cell phones and services providers make it uniquecompared to purchasing any other item?
2. Can cell phones be categorized as commodities as Mary has stated in her memo? Discuss thedifference between commodities and non-commodities with Camp Bowie Technologies'requirements for cell phones in mind.
3. How does purchasing equipment for business purposes differ from any other consumerpurchasing? How would these differences influence the process in which value are assigned tocompeting offers which are being compared?
4. Has John clearly defined and evaluated Camp Bowie Technologies' requirements for its cellphones? Are the requirements properly represented in the value assessment method created byJohn? Is the push-to-talk function worth receiving the highest weight?
Microfuse, Inc.
Microfuse, Inc. which is a manufacturer of circuit protection products has been utilizing a verticallyintegrated corporate structure and business model until the present. However, in addition to largeinventory costs, increasing competition and the resulting price reduction pressures have madeMicrofuse review its current business mindset and develop adjustments to its overall strategy inorder to improve business performance. One aspect of this process is the consideration of furtherwidening the range and scope of its outsourcing practice.
Questions:
1. What are the characteristics of "vertically integration?" How does having a vertically integratedorientation affect the levels of various types of inventories?
2. What possible reasons for Microfuse's high inventory levels other vertically integration thanmay exist? How would these reasons be affected by increasing the level of outsourcing withinMicrofuse's operations?
3. How does one define "limited outsourcing strategy" stated by Tom Cecil in the memo? Discussthe issue on both tactical and strategic levels.
4. What kind of picture can be created by analyzing the description of Microfuse's globaloperations? How would the trend of relocating manufacturing functions to the Asia regioninfluence Microfuse's operations?
5. What is the deference between outsourcing and offshoring? What are the advantages anddisadvantages of each in regard to Microfuse's case?
Eastern Waves, Inc.
Mr. Patton, vice president of purchasing for Code C, Inc., is concerned about a priceincrease from a Malaysian supplier. Last summer Code C was celebrating a 60 percentcost reduction based on replacing their major specialty steel supplier with Eastern Waves,in Kuantan, Malaysia. Eastern Wave is a small steel manufacturing company in Malaysia.It has several plants in Malaysia and China and produces various downstream steelproducts such as angle steel, I-beam, and round bar. The angle steel plant is located inKuantan, Malaysia. The production method of the angle steel is called continuous rollingand the key raw material ingredient for angle steel production is billets. When operatingat full efficiency, the annual capacity of the angle steel production is 10,000 MT.
Questions:
1. As Jon James, please write a critique analyzing the situation in Malaysia for Mr.Patton. What recommendations do you suggest?
2. How can Code C avoid future sourcing disruptions?
3. How should Code C critically analyze future global sourcing alternatives?
TEMKO Earthmovers
TEMKO Earthmovers is concerned with the high level of cost resulting from the general poor quality of incoming outside component or "short-blocks castings." As a solution to this problem, TEMKO is considering outsourcing the specific manufacturing function that involves the problematic components. However, the current market conditions surrounding this course of action, which requires TEMKO to sole source, may potentially place TEMKO in a vulnerable position. The policy change does not just involve the direct cost associated with the purchase but also involves other costs relating to labor, equipment, floor, storage that will be of no further use once the function is eliminated.
Questions:
1. Develop a unit cost breakdown for R-208 tractor engines utilizing both available currentdata and assumptions in the process of calculations. State all assumptions
2. What would the estimated probable cost resulting from poor quality of incoming short-blocks castings? Suggest probable solutions to this quality problem.
3. What could be inferred about the supplier market conditions from the response for therequest for quote? How would the supplier market conditions influence the decision toexpand outsourcing policy?
4. Discuss and define the deference between single sourcing and sole sourcing and in regard tothe relationship between TEMKO and ACE Manufacturing. Include an evaluation of ACEManufacturing's requests and what could be inferred from them.
5. According to ACE Manufacturing, what would the resulting cost reduction fromoutsourcing to ACE Manufacturing be? Discuss the probable sources of this cost reduction.What would be the consequence of exploiting these sources to TEMKO and ACEManufacturing?
Attachment:- Block - cases.rar