Eagle Manufacturing Case Study

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Date Submitted: 03/30/2013 12:03 PM

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Case Name: Eagle Manufacturing Company Case Study

I. Major Facts

A. Ted Jones is the supply manager for the Eagle Manufacturing Company. He has been the supply manager for two years.

B. Ted has been struggling with one crisis after another while trying to placate operations, plant maintenance, and seemingly half the management team (and their assistants).

C. Although Ted Jones has a great team of buyers, expediters, and support staff who carry out top notch work, the morale in Ted’s department is low.

1) One of the senior buyer’s in Ted department, Bill Wilson, submitted his resignation. Bill accepted a position at another company where he will be paid substantially more although he will be doing the same work and will be under the same amount of stress.

D. The previous month performance data for the office shows: 743 transactions, 98 percent with delivery on or before specific dates, 87 percent of supplies and material purchases at or within 5 percent of target price, 9 percent rejection rate of materials and supplies received.

E. A purchase request for a new robot, that according to estimates would cost $5.5 million, was submitted by the maintenance department. It was supposed to be delivered and operational in seven months and only source of supply was able to meet the delivery date.

1) An experienced buyer in Ted’s department, John McCauly, was negotiating with Fenwick Electronics for the robot. Although the maintenance department proposed $5.5 million, Fenwick proposed $7.2 million. Because of time, Fenwick was the sole source for obtaining the robot.

2) John learned that the $5.5 million estimate on the robot was in reality not an estimate but the amount budgeted for the machine last year.

F. Several members from other departments of Eagle Manufacturing Company are not satisfied with Ted and the supply management department’s work....