Temko Earthmovers

1327 Words Jun 30th, 2015 6 Pages
Case Study: TEMKO Earthmovers

Presented to
Mr. Willy Cuason
Decision Sciences and Innovation Department
De La Salle University- Manila

In Partial Fulfillment of the Requirements for
SUPPMAN (M71)

Submitted by:
Chu, Hyemin
Cruz, Charleen Grace
Lim, Nicolai
Tamayo, Glaiza May

Submitted on:
June 2, 2015

Table of Contents
I. Case Background …………………………………………………………………………...2
II. Summary of Findings ……………………………………………………………………….2
III. Statement of the Problem …………………………………………………………………3
IV. Analysis of Alternatives …………………………………………………………………...3
V. Detailed Recommendations ………………………………………………………………5
VI. Learnings …………………………………………………………………………………..6
VII. References …………………………………………………………………………………6

I.
…show more content…
In addition, since ACE is willing to invest in the necessary machine and guarantee at least 100 engines per month, working with ACE would reduce cost of labor to disassemble and repair damaged casting, and disruption cost as well as maintain quality and ensure number of machines required

However, regardless of its advantage, sole sourcing of supply is usually considered as risky decision since the company has to rely on the sole supplier. Therefore, it may result in a catastrophic event which is delay in shipment or stop production if the sole supplier has problems in terms of producing machines. Also, the supplier may become complacent or financial problems may occur if ACE increases the cost of production. Thus, maintaining the strong relationship between companies is crucial.

Alternative 2: Produce in-house short-clock castings

Manufacturing products In-House would provide TEMKO long-term benefits as the company could be strongly independent. First of all, in-house production would make the company flexible that it would allow TEMKO to move through the design, engineering, product development and production phases easily which will also help the company to react trends in market quickly. Moreover, customizations, which will greatly benefits to attract more companies is possible as it is easier to communicate with different departments or divisions within the

More about Temko Earthmovers

Open Document