Pacific Health Care

Case Study

Case Study: Pacific Healthcare

Key Facts:

1) 3 ½ miles of gas pipe will be needed to complete the upcoming project.

2) The current date is April 14th, and the project is set to begin in June.

3) The pipes are intended to be in use by September.

4) The supplies manager found out about the project in January and attempted to get the necessary information from the construction project manager. The construction project manager stated that they were waiting on the design engineer’s approval.

5) At least 2 ½ months have passed with no purchase order information.

6) The supplies manager is concerned with the time needed for the mills to prepare and deliver the order.

7) The requested specifications would constitute a “custom order” and would probably increase the manufacturing time frame.

8) The design team, construction team, and supplies manager all report to the Vice President of operations.

9) Using thicker walls will allow for less regulation and increasing the length of the pieces will reduce welding costs.

10) A layer of wrapping must be applied. No information is provided on which option is preferable.

11) No information is provided on location, so the geographic location of the mill is assumed to be of no consequence.

The Problem:

No purchase information has been provided to supplies manager which decreases the ability of the supplies manager to obtain the best price for the best product, which can be received in the required time frame.

Possible Solutions:

1) The first thing that must be done is that the two mills should be contacted to see if a) the custom order can be completed in time for installation and b) at what price. If the order can not be feasibly fulfilled, he supplies manager can approve a purchase similar to prior purchases. The pipe may be governed more strictly, but the costs of the project are understood as the firm has experience with the product specifications...