Selection of a Pressure Vessel Manufacturer

1. What specific areas and activities should the Oceanics group have investigated on its two visits?

The Oceanics group should have investigated on the prospective manufacturer's supply chain management team or the activity related to the flow of incoming materials needed to make the vessel. If I were looking to choose a manufacturer I would like to know that the right manufacturer of choice would have the necessary materials either acquired or set to acquire in order to make the vessel the exact way I need it to be. Another area that the Oceanics group should have investigated that is important is the engineering work facility specifically related to work on the vessel. I would like to see where the real work would be done so I would have a good idea of how it would be done.

2. Evaluate each supplier on each of the above items using information obtained on the field visits.

Atomic Products Company:

General Appearance: Excellent lighting and ventilation arrangements, clean aisles. Neat and well ordered arrangement of the overall building.

Employees Floor Area: 2,000 people; 470,000 square feet of floor area.

Laboratories: Up to date laboratories and good inspection facilities. Metallurgical and chemical laboratories were well staffed and are able to provide Oceanics with adequate test specimens required by the specifications.

Shop Facilities: Best in the region.

Nuclear Vessels Company:

General Appearance: Heating, lighting and cleanliness conditions were not as adequate as Atomic Products Company.

Control of Incoming Material: Better control of materials. Each piece of material was marked for the project of its intended use.

Condition of Manufacturing Equipment: Machines were of considerable age and not of large capacity but adequate for the job.

Control between the management and the shop: Effective control and coordination among people from supply, expediting, quality control and scheduling. Project engineer is kept informed on a daily basis.

3. Based on the face value of the written proposals, which company appeared to submit the better offer?

Based on the face value of the written proposals, I think the Atomic Products company out of NY appeared to submit the better offer. I base this on the numbers presented in the case study outlining the total price.

4. Based on the proposal plus information obtained from the case history, which company is likely to be the better supplier?

Although the Atomic Products company out of NY appeared to