Organizational Design the Supply Manager, Jack Toole,

Organizational Design The supply manager, Jack Toole, must determine whether to give Nuclear Vessels or Atomic Products the Oceanics, Inc. contract. Oceanics, Inc. needs to purchase one pressure vessel that meets their specifications. The two top companies were carefully screened and visits to both plants were made to determine which one was better qualified.

What specific areas and activities should the Oceanics group have investigated on its two visits? While a number of issues were investigated, the team should have investigated at least two additional areas: supply chain management and inventory/logistics. Both of these issues are germane in terms of being able to deliver appropriate levels and specifications as needed.

The issue with supply chain management is quite important since it relates to the actual manufacturing of the product in a timely fashion, and whether or not the companies involved had the infrastructure appropriate for the process. Indeed, this also bleeds over into the area of engineering expertise, since it is not only about the inventory being put into the supply chain, but also the quality and specifications of that inventory necessary for the important work.

Thus, both the quality of the laboratory and research design areas is important, as well as ensuring that the Supply Chain is correct, vital and robust -- and that on each stage the needed parts and services are linked within the company's needs electronically. Even small delays could bring disaster to the overall project. For example, it is possible for a supply chain to be either too robust or too lean, depending on the actual situation between organizations.

For instance, management of an organization is able to control the supply chain and place orders but still does not have full control over the products that may be purchased or surges or spikes in demand that may affect the manufacturing process.

A supply chain that is too lean may then have two actual effects on the organization: 1) with retail or other consumer-based operations there may be stock outages, causing customers to become jaded and dissatisfied and perhaps change their buying behavior to another store; 2) for manufacturers the process may come to a halt, causing time, money and most particularly human resources to be wasted. In both cases there is a loss of profit, reputation, and customer (whether that customer be retail or business-to-business) (Watson, 2007). 2.

Evaluate each supplier on each of the above items using information obtained on the field visits. Atomic Products Company - Clean, modern, well lit and ventilated; organized arrangement. Roughly 2,000 employees, 470,000 square feet of floor area. The laboratories are modern, up-to-date, the personnel seems well trained and competent. Both the chemical and metallurgical laboratories were staffed appropriately, and examination of expertise showed competent backgrounds and training. The staff was friendly and helpful, and able to provide Oceanics with adequate, and appropriately, specimens on time and per specifications.

The shop facilities appear to be the best in the region. Nuclear Vessels Company -- Marginally clean, but conditions were clearly subpar to Atomic Products; NVC had a superb control of materials, with each piece of inventory marked for its intended use; machinery was in good working order, but rather old and not as large of capacity as APC; however, adequate for current levels of need.

There was good control between management and shop areas, as well as coordination, teamwork and a good work ethic that resulted in expediting, control and scheduling. The project engineer is a take-charge individual who leaves no room to chance, and is in the loop on all aspects of the project on a regular basis. 3.

Based on the face value of the written proposals, which company appeared to submit the better offer? Based not only on fiscal matters, but on logistics and the ability to evolve with Oceanics, I would recommend Atomic Products out of New York. The manner in which their bid fit the needs, and was actually about 20% less expensive overall, was encouraging. Although their shop rate, overhead and material costs may appear higher in the short-term, their expertise and ability to grow with Oceanics is clearly superior. All work will be done.