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[answered] Case Shell Case Fabricators BACKGROUND Shell Case Fabricators (SCF) designs and builds shell casings that enclose electronic products such as...

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.




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.




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


governance committee.


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


some specifics.


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