Pressure Vessel Manufacture

Case Study Three: pressure vessel manufacture

TLMT313 Supply Chain Management

Nathan Moore

November 12, 2014

Case Study Three
Case Name: pressure vessel manufacture

I. Major Facts

The engineering department and care to purchase application to the supply manager of the oceanic sink. Oceanic Incorporated is looking to buy one pressure vessel with specifications as outlined. Request for quotes is been sent out over 20 companies in 19 have responded with their quote.  The supply manager Jack told if he received each of the proposals he forwarded them to the engineering and manufacturing department for preliminary evaluation. At the end of the one-month required check-called a meeting of the engineers in the manufacturing engineer department to discuss all the bids. Each bid was carefully screened in bidders were eliminated one by one until two companies remained the advantages and disadvantages a supplier appeared to be about equal the two companies atomic products company submitted a lower estimated price, guaranteed equipment, and with more suitably located, and we need to require delivery date. The other company nuclear vessel Inc. offered lower hourly and overhead rates, a minimum amount of subcontracting, and an excellent past experience in making similar vessels. Plans are made to visit both companies the following week.  

II. Major problem.

The basic issues are as follows: Atomic products and never created such a large vessel, nuclear vessel has. Atomic products had a vast amount of equipment and machines they were brand-new on-site, nuclear vessel had far fewer machines which were older and will require some subcontracting.  Atomic products did not have the space indoors to create a rigid cleaning specifications, and have to make a substitute location outdoors which may be inferior. Nuclear vessels had plenty room indoors to create clean room.  Atomic products had a union shop with it gone on strike over the past few years, nuclear vessels with not unionized. During the group tours atomic products only sent production manager and gave vague replies during the tour, has nuclear vessel had the president, vice president of engineering, VP marketing, vice president manufacturing.  Atomic products did not have good control of incoming materials, nuclear vessels had each item tag for a specific project to ensure the right items and materials were used.  Atomic products had a well-maintained and well cleaned shop appearance while nuclear vessels had an older more rundown appearance

Atomic products and never created such a large vessel, nuclear vessel has.  Atomic products had a vast amount of equipment and machines they were brand-new on-site, nuclear vessel had far fewer machines which were older and will require some subcontracting.  Atomic products did not have the space indoors to create a rigid cleaning specifications, and have to make a substitute location outdoors which may be inferior. Nuclear vessels had plenty room indoors to create clean room.

Atomic products had a union shop with it gone on strike over the past few years, nuclear vessels with not unionized. During the group tours atomic products only sent production manager and gave vague replies during the tour, has nuclear vessel had the president, vice president of engineering, VP marketing, vice president manufacturing.  Atomic products did not have good control of incoming materials, nuclear vessels had each item tag for a specific project to ensure the right items and materials were used. Atomic products had a well-maintained and well cleaned shop appearance while nuclear vessels had an older more rundown appearance

III. Possible solutions

1. Award the contract with nuclear vessel Incorporated, based on their lower price and guaranteed work. Nuclear vessel Incorporated has completed a much larger vessel and had the internal area to create a clean room. They may have to subcontract some of the processes, with equipment is located in a different place but under the same corporate umbrella and should not be difficult. Although they have older equipment, and fewer personnel have a proven track record for large vessels. They also have an outstanding tracking process to ensure that all materials to come into the factory are marked correctly and utilize for the proper projects.  
2. Award the contract with atomic products Incorporated, they have a higher per hour rate will lower overall project rate. They do not have the internal facilities to create a clean room, but they do have the materials to create clean room that should meet our needs. Although they have not created a vessel of our size, I believe they do have the equipment and the manpower to do so. We would have to ensure that they tighten up their incoming material process, to ensure only the appropriate materials are used in our project. Atomic products Incorporated does not have a need to subcontract which can lead to unneeded issues, as they can build the entire product in-house

IV. Choice and rationale

Both companies offer excellent products as well as production value, but my recommendation that would go with atomic products based on the following findings. Atomic products come in $328,000 cheaper than nuclear vessel. As this is not the only deciding factor they also have the equipment in-house to create this site structure, although they have not completed it before I actually believe they have the infrastructure to build this vessel. Although they are not as personable as nuclear vessels, I believe they have a proven record that will complete this project. They do not have the internal space to create a clean room, but in addition designed that meets the stringent standards can be established. This company also guarantees both workmanship as well as materials has nuclear vessel were only guaranteed the workmanship.