Dehavilland

The Case Study Report

On

De Havilland Inc.

Executive Summery

My decision is to recommend Marton to DeHavilland’s Source Selection Board (SSB) as prospective vendor for selection provided that the results of the quality analysis of Marton’s production, physical inspection of their facilities, and review of their financial statements are satisfactory.

Based on the initial information from the normalized bids from all nine potential suppliers for flap shrouds and equipment bay doors, the most cost effective alternative is Marton Enterprises Inc. Their bid shows them to be 18% lower than their nearest competitor, and when comparing pricing of specific components to the pricing by current providers they are between 54% and 75% less expensive.

However, beyond parts cost reduction we are also interested in establishing long-term co-operative contracts with the vendor. So, apart from determining whether the best price offer, we need to determine whether Marton is sufficiently stable to be relied upon in the long run.

So my strategic intention here is to negotiate an agreement with Marton Inc. that will be of the greatest value possible to de Havilland keeping in mind our goal of longer-term agreements and reducing the amount of vendors we deal with. A good decision from SSB will allow DeHavilland to achieve this objective.

I. Process Elements /Table of Content

A. Executive Summary Page 1

B. Table of Contents Page 2

II. Issue with Impact Analysis Page 3

III. Environmental & Root Cause Analysis Page 4

IV. Alternatives and/or Options Page 5

V. Recommendation and Implementation Page 6

VI. Monitor & Control Page 8

List o Issues with impact analysis:

As we have identified that our best option is to negotiate an agreement with Marton Inc., we now should look at what are the potential issues as roadblocks in achieving this goal. There are many potential...