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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

 

BACKGROUND

 

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

 

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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