Opre 6371 Case 5-2

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6Case 5-2: Rondot Automotive Name: Lovee Sachdeva, Bin Wen, Matthew Miles, Ryan Buxbaum ,Yuguang Wang, Shaoying Lu. Group: 3 Date: 2/22/2013 ------------------------------------------------- Situation: * Glenn Northcott is the purchasing planner at Rondot Automobile in Jackson, Mississippi. The company is a wholly owned subsidiary of Rondot Worldwide, a leading global designer and manufacturer of electrical and electronic components. (Note: You are Glenn) * Responsible for evaluation the outsourcing opportunity * Meet with Terry Gibson and purchasing manager to decide whether or not to take actions on outsourcing * Glenn had been approached by Greven E-Coating willing to…show more content…
Cost benefits analysis on the process 9. Inexperienced decision making on outsourcing opportunity Tasks: * What does Richard Kaplan do? Richard needs to clarify and calculate the total cost savings and the cost of converting from cold-bond adhesion to hot-bond adhesion * 25 Cents * 6 = $1.50 * 15 Cents * 6 = $0.90 * Does the difference $0.60 can cover the conversion from traditional wet coating system to e-coating system? * The durability and re-paint rate is also needed to consider: If the wet-coating system has durability of 10 years while e-coating repaint rate is 8 years, The total cost of conversion from traditional wet-coating system to e-coating system will increase significantly * What are alternatives? * Negotiate with Greven E-Coating for a lower costs * Conduct a careful research on both advantages and disadvantages of E-coating system * Search for more options in potential sources and substitute items other than traditional wet-painting and e-coating * The challenge of maintaining long-term technological and economic viability for the possible 100% hot-bond adhesion system * The revision of policy of supplier selection * Criteria of standardization and policies regarding the choosing of suppliers * An understanding of the market conditions in order to set appropriate expectations for the price provided from Greven E- Coating * Analyze data collected for cost and

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