Essay on Prism Canada Inc. Case Study

1517 WordsOct 22, 20127 Pages
Prism Canada Inc. Case Study Problem Statement: Will outsourcing the company’s inefficient sheet metal operation be a proper strategic move to save the company money and satisfy current and potential customers with respects to quality and delivery lead time? Size up: Item | So What? | Machine break-downs | Since break-downs occur at the initial step, the rest of the process gets delayed causing longer customer lead time and extra shifts are required which increases labour expense. | Age of the machines | Considering the turret press was old and broke down often, this causes a delay in customer lead time and unnecessary costs because parts are expensive and hard to find. | Under performing sheet metal operation | Because…show more content…
The company could also eventually earn a reputation as poor supplier that cannot meet customers’ expectations which would potentially cause the company to lose money and in a worst case scenario, go out of business. Outsourcing an important process could also compromise confidential information, which could lead to the selected vendor using that information to acquire new business; therefore Donna must bind the selected vendor to a contract that prevents the vendor from supplying other customers with that product. Qualitative: Considering Donna Smith is Prism Canada’s buyer, she attains the proper qualifications and authority in selecting a specific type of vendor to supply Prism with their required products. She has conducted a supplier visit in order to assess the potential vendors in regards to the specific standards that Prism Canada Inc. expects the vendors to have. Some of the following qualitative criteria’s include: 1. Quality a. The selected vendor must clearly demonstrate the ability to provide quality assurance to meet their specifications. 2. Safety b. The selected vendor must clearly demonstrate the ability to meet customer lead times while conducting themselves in a safe manor. 3. Environmental c. The selected vendor must demonstrate the ability to manufacture the product while at the same time abiding by environmental standards. 4.
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