Gas Company

Fauquier Gas Company

Mr. Bill Murphy is the manger of supply management of Fauquier Gas Company, which is one of the nation’s 440 gas companies in the United States. Fauquier Gas Company served on an area where land use was changing from agricultural to residential. The changes from agricultural to residential have increased the demand for gas about 3 ½ miles. The project was to start in June and end in September, with an additional 10 miles of new gas lines for next year. Bill Murphy is responsible for the purchasing of material used in the distribution of gas such as pipes, meters, fitting, as well as other different material. He is also responsible for the procurement of furniture, stores management, material forecasting and control, systems and forms. The supply organization falls under the vice-president for operation. Mr. Murphy requested a purchase request form from Mr. Clive Byers (construction project manager) to begin contacting suppliers for quotes on prices and delivers. Mr. Pat Wilson is the design engineer who approve the purchase request.

The specification for the pipes are 24 inches wide a wall thickness of 3/4 inches and a length of 57 feet. The specification were giving to Mr. Murphy after a phone call from Mr. Wilson. The purchase request before called for a wall thickness of 3/8 inches and random double normal. Random double normal is considered 40 feet plus or minus 5 feet. The 57 feet pip would reduce the welding cost. The wrapper of the pipe has not been determined. Coal tar and pry-tech wrappers has been use in the past. The mill supplying the pipe will apply the wrapper an the company that applied the coal tar wrapper is located in Philadelphia. The company that applied the pry-tech wrapper is located in Atlanta. As of April 14 Mr. Murphy had not yet receive the purchase request.

Mr. Murphy has concerns about the economic consequence and the schedule impart of the proposed changes in the wall thickness and length of pipe required....