Case Study: Eagle Manufacturing Company

Case Study: Eagle Manufacturing Company

MAJOR FACTS:

- Supply Mgmt. function appears to be operating efficiently with a professional team of personnel.

- The function seems to be pre-occupied with tactical functions as opposed to Strategic functions.

- The function is operating in a crisis management mode the majority of the work day

- A Senior Buyer and a valued member of the staff has submitted his resignation because of job pressures and an offer of much higher pay. He stated that if he was going to get ulcers he might as well get paid for them.

- Latest month’s statistics show that late deliveries have reached a high of 9% and that there has been a rejection rate of materials of 5%.

Production Management in the company felt that incoming materials were causing production problems and were also complaining that production shutdowns were caused by late parts deliveries.

- Ted Stevens, Supply Manager, has been under heavy pressure from other entities in the Company to improve operations of his function.

- Three instances have surfaced in procurements that have increased pressure on the Supply Function: Negotiations for a new maintenance robot were going badly with a sole source because inadequate lead time did not allow time for competition, faulty cost estimation; poor quality copy paper was causing unnecessary jambs in copy machines – causing a loss of productivity and contracted janitorial services have not been satisfactory because of poor, unenforceable specifications.

MAJOR PROBLEMS:

- Effective communications and collaboration between functional divisions of the Company and Supply Management are breaking down or have never existed. This indicates a lack of credibility in the Supply Function as a value added function in the company.

There is evidence that team morale in the Supply Function is on a downward scale. This is evidenced by the resignation of a senior buyer who is getting better pay for the aggravations of...