Essay on Case 8-2: Throsel-Teskey Drilling

723 Words Apr 14th, 2012 3 Pages
Case 8-2: Throsel-Teskey Drilling
Situation:  Alison Burkett - purchasing manager at Throsel-Teskey Drilling Inc. (TTD) o Reports to John Dietrich, the president, maintained a substantial equity interest in the company. o Responsible for sourcing and materials management. o Reporting to Alison was Ken Jenner, materials manager, and Emerson Parrish, warehouse manager  Throsel-Teskey Drilling Inc.: Merged with Teskey-Dean Drilling Inc. (Teskey-Dean) o A mining services company performed diamond drilling o Had more than 600 employees o Drilling rigs: Approximately 145 rigs operated at sites in US, Canada, Mexico, and South America; about 75% (109 rigs) of the company’s rigs in the south-western US. o Customers of the company: top-tier
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How to update inventory records to get timely data? How to reduce inventory levels of the company?

Tasks:  What should Alison do? o Develop plans to improve the inventory management o Develop time-based supply strategies to bring competitive advantages to the organization  Identify the functions and forms of inventory  What are alternatives for inventory management? o ABC classification o Supplier-managed inventories (SMI) o Just-on-time or Just-in-time (JIT) o Enhance the forecasting system (factor correlated with inventory variation)  Provide training programs for current and new hiring employees 1

Improve information and management systems o Implement a new ERP system to provide accurate, timely data; reinvestigate MRP system

SUGGESTED QUESTIONS FOR DISCUSSION 1. What are root causes for inventory variance? 2. How to motivate employees after the merger? 3. What management approaches will lead two different supply organizations work well together? Actions:  Recommend John to develop systematical educational programs  Improve forecasting systems to in turn eliminate inventory variance o Incorporate qualitative and quantitative forecasting techniques o Collaborate planning, forecasting, and replenishment (CPFR)  Inventory control o Assign a special staff to update inventory records as soon as possible o Determine order quantities and inventory levels; analyze related costs o Reduce in inventories investment; then lower

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