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Corwin

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Corwin Corporation is a $150 million / year company dedicated to produce low cost high quality rubber components. They have a two dozen different product lines meant for department stores, hardware stores and automatic parts distributors. Their product are meant to have longer life cycles. The management believed in creating new markets for existing product rather exploring new products. R & D mains mission was to evaluate state of the art technology and its application to existing product lines. They did not take risks in launching new specialty products. And the stringent requirements forced Corwin to no bid more than 90% of all specialty product enquires. The company is marketing driven organization. Manufacturing had different ideas but all decision were made by marketing. Pricing and estimating are jointly done by both marketing and manufacturing. Engineering department acts as a support group. Company's approach is to give product line managers assigned to new products.
In 1980, Corwin accepted specialty product assignment from Peters Company. Peters Co. had $250,000 invested in R&D and they were looking for development of new rubber material but they did not have the personnel or talent to undertake project and their testing and R & D will be overburdened. But Corwin is not a research group and they only agreed to work with Peters company when the VP made a deal of 5 year production contract.
The management of Corwin agreed on this deal and Royce gave the responsibility of Project Leader to Dan West. West prepared the direct labor man hours, costing and pricing rates were given to Royce and Potts acted as a observer who provides legal advice. West prepared a 10 page letter within 2 days and Peters accepted the proposal. West worked on holiday to make sure everything is in control. West spent time after vacation soliciting support that he needed from other

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