Eagle Fiance

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Date Submitted: 09/24/2011 01:10 AM

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Analysis, Synthesis and Evaluation of Eagle Manufacturing Co. Case

I. Major Facts

Ted Jones, the supply manager for Eagle Mnfg Co., has a morale problem in his department. The senior buyer submitted his resignation. August’s performance data reveals room for improvement: only 87% of supplies/materials purchased at or within 5% target price, 9% late delivery, 5% rejection rate of materials/supplies received. Cooperation between other departments and supply management is a problem. Major communication gaps. Maintenance submitted a request for a $5.5M robot. This was merely the amount budgeted in the previous year. The only company that can deliver the robot on time wants $7.2M. Operations ran out of parts during one week in August, nearly shutting down production, and quality of incoming parts is causing major production problems. Two VP’s are putting pressure on Ted for answers. The head of administration is daily complaining about reduced productivity in her office due to supply and equipment issues. The president wants to know why the windows aren’t being cleaned properly.

II. Major Problem

Supply management has underdeveloped internal strategic relationships and positioning to effectively address or solve Eagle’s supply, productivity, equipment, communication and quality issues and problems.

III. Possible Solutions/Alternatives

A. Senior management implements strategic supply chain management initiatives by appointing a CSO and elevating supply management’s participation and inclusion in the overall decision-making processes.

1. Advantages: Takes direct pressure of 2VP’s off of Ted’s back. Helps all departments see the larger picture and supply’s role in it, therefore hopefully facilitating better communication and ultimately world-class supply management.

2. Disadvantages: Eagle may not have the capital to create that position. May take too much time to implement and quickly affect the current situation. May call Ted’s...