Unit VI Case Study
Read the "Shell Case Fabricator" case on page 442 of your textbook.
After reading the case, answer the following questions:
? Should Shell Case Fabrications (SCF) accept or reject Air Connection Links? (ACL) request? Which option would you select? What risks are involved?
? How should SCF negotiate with ACL? How can SCF and ACL develop a positive, long-range relationship? Give some specifics.
You will need to identify your own thoughts and cite specific passages from the case to support your point of view. Your response should be a minimum of one page in length written in standard essay form following APA style guidelines.
Information about accessing the Blackboard Grading Rubric for this assignment is provided below.
Case Shell Case Fabricators
Shell Case Fabricators (SCF) designs and builds shell casings that
enclose electronic products such as calculators, cell phones,
modems. Typically the cases are plastic or plastic compounds.
SCF has six different production lines that cover different types of
product. For example, the largest high volume production line for
modems can produce three different colors and two models
(vertical and flat). Air Connection Links (ACL) is the biggest
customer that buys product from this line. This high output line
now runs at full capacity on an eight-hour shift. The other five
lines run smaller quantities and tend to meet the needs of other
specialty products manufactured by different smaller firms.
Ninety-five percent of SCF?s product casings line is designed by
the original hardware manufacturer. Getting a casing to the
production stage requires a great deal of collaboration and
interaction between the original hardware and case de- sign
manufacturer (e.g., ACL) and SCF?s shell design engineers and
production department. The latest new product of ACL is a
modem designed to be used for monitoring water activity in bays,
e.g., ship traffic, pollution, floating debris. Be- cause of the
product?s high functionality and low cost, potential demand for
the new product is out of sight. It seems every country with small
bays used for ship- ping wants enough underwater modems to
cover their respective bays.
THE UNDERWATER MODEM PROJECT
At SCF each new product is assigned a project manager to
coordinate and manage the shell design, budgets, and
manufacturing startup. Songsee is SCF?s star project manager and
is the project manager of the shell for the new short-range,
underwater acoustical modem. The shell casing for the
underwater modem required special design, materials, custom
equipment, and a seal to withstand pressure to 50 meters. Air
Connection Links, the product owner, needs sixty thousand modems in 91 days (next January 15) for the Estuary Control
Institute meeting in Hong Kong.
CLIENT CHANGE REQUEST
Songsee has felt the project was moving along smoothly, with the
exception of being two weeks behind schedule. She feels she can
?lean on? the design depart- ment to put the project on top
priority and make up the two weeks. Yesterday, ACL?s project
manager, Sabin, came in with a ?simple change.? Change the
outer shell shape from rectangular to dome shape; it will improve
performance 2 per- cent. Songsee couldn?t believe Sabin. He
knows better. He knows the engineering implications, and it is
NOT simple! Yet Sabin tells Songsee, ?It shouldn?t cost much.?
Songsee imagined a sharp retort, but she counted to five and
aborted. At this late stage of the game, changes and schedule
compression cost big money! Songsee said she would get
together with her team and start on a new time and cost estimate
today. She told Sabin he would have to give her a written change
re- quest of the new requirements by tomorrow. Sabin appeared
disappointed. ?Why don?t we just add ?100,000 to the price and
get on with it? We have been doing business with SCF for six
years. With expected demand out of sight, SCF will break even
quickly and have a great profit on the production side.? Songsee
sighed. ?Let?s proceed with the change order process. I will bring
your request to the change order governance committee.?
Songsee?s meeting with her team about the change went about
as expected. Every department moaned about changing at this
late date. The guesstimate cost and time estimates were over
triple Sabin?s idea of ?100,000. For example, designing a new seal
for a dome style modem will require a new custom water sealing
approach, possibly an untested different sealant, and new molds.
Has ACL frozen the design of the new style modem? Songsee
asked the team to come in with a more detailed estimate by
tomorrow afternoon, before her meeting with the change order
THE NEXT DAY (FRIDAY) Sabin called from ACL at midmorning the next day. ?Our senior
management is upset that we have to be so formal for such a
small change. They just want to get on with the project and meet
the time to market launch date. ?100,000 seems like a fair price.
They believe you need to talk to your management. They want a
response by Monday.? The team estimates came close to
yesterday?s guesstimate (?391,000). Not good news. Songsee
knew the answer of the change committee would be to hold for
the full amount. She was right. The change committee believed
the costs are there and need to be covered to meet the launch
date. The committee was also concerned that priorities and
resource scheduling would have to change for SCF?s design and
production departments. In three hours she would meet with
senior management to decide to accept the client?s request at
their price or come up with an alternate plan. Songsee realized
she should have several options for senior management to
consider, along with a recommendation. 1. Should SCF accept or
reject ACL?s request? Which option would you select? What risks
are involved? 2. How should SCF negotiate with ACL? How can
SCF and ACL develop a positive, long-range relationship? Give
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