MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Sustainability and Supply Chain Management
12th Edition
ISBN: 9780134165325
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter E, Problem 1CS
Summary Introduction
Case summary:
IB Company asked two other companies to bid on additional 80 units for a computer product. The companies submitted the figures and the cost breakdown. One of the companies SM indicated displeasure over the inflation possibility in material costs.
They had another concern regarding the large requirement of subcontracting and overtime that will be needed to complete the requested deliver by IB Company. They called upon further meetings to discuss the cost estimations as they have seriously underestimated the cost requirements.
To determine: The advantages and disadvantages for IB and SM Company in this approach.
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Case Study
SMT’s Negotiation with IBM
SMT and one other, much larger company were asked by IBM to bid on 80 more units of a particular computer product. The RFQ (request for quote) asked that the overall bid be broken down to show the hourly rate, the parts and materials component in the price, and any charges for subcontracted services. SMT quoted $1.62 million and supplied the cost breakdown as requested. The second company submitted only one total figure, $5 million, with no cost breakdown. The decision was made to negotiate with SMT.
The IBM negotiating team included two purchasing managers and two cost engineers. One cost engineer had developed manufacturing cost estimates for every component, working from engineering drawings and cost-data books that he had built up from previous experience and that contained time factors, both setup and run times, for a large variety of operations. He estimated materials costs by working both from data supplied by the IBM corporate purchasing…
Case Study
SMT’s Negotiation with IBM
SMT and one other, much larger company were asked by IBM to bid on 80 more units of a particular computer product. The RFQ (request for quote) asked that the overall bid be broken down to show the hourly rate, the parts and materials component in the price, and any charges for subcontracted services. SMT quoted $1.62 million and supplied the cost breakdown as requested. The second company submitted only one total figure, $5 million, with no cost breakdown. The decision was made to negotiate with SMT.
The IBM negotiating team included two purchasing managers and two cost engineers. One cost engineer had developed manufacturing cost estimates for every component, working from engineering drawings and cost-data books that he had built up from previous experience and that contained time factors, both setup and run times, for a large variety of operations. He estimated materials costs by working both from data supplied by the IBM corporate purchasing…
Question-2
What kind of issues can arise in consultant-client relationships in OD? What should be done to manage these relations appropriately? (Maximum 200 words)
Chapter E Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Sustainability and Supply Chain Management
Ch. E - Prob. 1DQCh. E - Prob. 2DQCh. E - Prob. 3DQCh. E - Prob. 4DQCh. E - Prob. 5DQCh. E - Prob. 6DQCh. E - Prob. 7DQCh. E - Prob. 8DQCh. E - Prob. 1PCh. E - Prob. 2P
Ch. E - Prob. 3PCh. E - Prob. 4PCh. E - Prob. 5PCh. E - Prob. 6PCh. E - Prob. 7PCh. E - Prob. 8PCh. E - Prob. 9PCh. E - Prob. 10PCh. E - Prob. 11PCh. E - Prob. 12PCh. E - Prob. 13PCh. E - Suad Alwan, the purchasing agent for Dubai...Ch. E - Prob. 15PCh. E - Prob. 16PCh. E - Regional Power owns 25 small power generating...Ch. E - Prob. 18PCh. E - Prob. 19PCh. E - Prob. 20PCh. E - Prob. 21PCh. E - Prob. 22PCh. E - Prob. 23PCh. E - Prob. 24PCh. E - Prob. 25PCh. E - Using the accompanying log-log graph, answer the...Ch. E - Prob. 1CSCh. E - Prob. 2CSCh. E - Prob. 3CS
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