...On reviewing the supply function in the Blozis Company it is clear that it is not organized at all. It works under a tactical strategy with many holes in its informal policies and procedures. Some of the key issues/Problems that have been identified are as follows: * There is no proper approval policy. * Lack of technical training or knowledge in the Supply Department. * Verbal not written descriptions were provided by engineering. * Supply Manager has no technical training. * General supply buyer handles technical items. * Expeditor attached to production spends over 50% of his time picking up items every day, also makes changes to specifications without approval and has too much authorization for his position. * Stock room is managed by a clerk with almost no supervision from the Expeditor to whom that position reports. * Stock room clerk could dispose of slow moving or deteriorated goods without approval. * No proper tracking of delivery receipts. * Long overdue payments are frequent and sizable discounts had been missed due to lack of receiving reports received by the Supply department. * In rush situation purchase orders are created by expeditor not the supply department. * Suppliers were delivering goods in rush situations without a signature from the supply manager. * Anyone in the company could initiate requisitions. * No formal signature policy. * No discipline actions for wrongdoing. The causes of the issues...
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...Executive Summary De Havilland (Havilland) is Canadian aircraft manufacturer that was recently acquired by Boeing. The parent company has requested Havilland take on several initiatives including seeking 25% price reductions from suppliers, reducing the total number of suppliers and seeking more long-term fixed pricing agreements. Havilland recently received submissions for an RFQ for the supply of supply flap shrouds and equipment bay doors. The pricing received raises some concerns however, as there are large variations in pricing between the lowest price from Marton Enterprises Inc. (Marton) and the highest price from the incumbent, Dollard Plastics (Dollard). There are several viable alternatives for Havilland. They may accept the bid from Marton on the condition that it is assured Marton fully understands the scope, their facilities are sufficiently equipped, and they provide their financials. It will be in Havilland’s best interests not to pursue their policy under the Bidder Selection Board (BSB) to attempt to renegotiate the price lower since Marton already provided substantial savings. The next option for Havilland is to pursue the first option but only given Marton 80% of the work for the first year and keep the incumbent under contract for the remaining 20% of work. The third option is to cancel the RFQ, clarify with the bidders what was unclear in the specifications that resulted in such a wide variation in pricing and go out for bids again. The final option...
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...Case Report- DeHavilland Inc. CASE ANALYSIS CONTENT | | MARKS AVAILBLE | EXECUTIVE SUMMARY | De Havilland had high inventory and high manufacturing cost which has been caused by the high cost of sourcing the flap shrouds and bay doors from Dollard Plastics of Montreal and the company was looking forward to an alternative supplier with a long time relationship. I found they were less of strategy and more tactical. The total parts cost of Dash 8 airplane at De Havilland represented 60-65% of their total manufacturing cost. It’s is evident that the company has recognized that and they have taken steps to solve this issue. A further indication that the company is operating at high cost is their previous failed attempt when they requested a 25% discount on all parts across the board. Dollard Plastics of Montreal is currently supplying the company with the parts needed but at about 3 times higher than Morton’s quote. The uncertainty that De Havilland was going through at this point in terms of choosing the right supplier who was going to be reliable enough to commit to a 5 year fixed contract with the company. The company wanted to move to a smaller base of vendors but should not be sore source without a backup plan. The company focused on cost reduction but cost should not be the only criteria of vendor evaluation and selection. The whole structure and process did not respect the strategic role of procurement, as well as tactical approaches that support the strategy. Such as Kim...
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...Executive Summary De Havilland (Havilland) is Canadian aircraft manufacturer that was recently acquired by Boeing. The parent company has requested Havilland take on several initiatives including seeking 25% price reductions from suppliers, reducing the total number of suppliers and seeking more long-term fixed pricing agreements. Havilland recently received submissions for an RFQ for the supply of supply flap shrouds and equipment bay doors. The pricing received raises some concerns however, as there are large variations in pricing between the lowest price from Marton Enterprises Inc. (Marton) and the highest price from the incumbent, Dollard Plastics (Dollard). There are several viable alternatives for Havilland. They may accept the bid from Marton on the condition that it is assured Marton fully understands the scope, their facilities are sufficiently equipped, and they provide their financials. It will be in Havilland’s best interests not to pursue their policy under the Bidder Selection Board (BSB) to attempt to renegotiate the price lower since Marton already provided substantial savings. The next option for Havilland is to pursue the first option but only given Marton 80% of the work for the first year and keep the incumbent under contract for the remaining 20% of work. The third option is to cancel the RFQ, clarify with the bidders what was unclear in the specifications that resulted in such a wide variation in pricing and go out for bids again. The final option...
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...Case Study | De Havilland | | Executive Summary Financial analyst, Kim Tomar is a Financial Analyst at De Havilland Inc, a Canadian aircraft manufacturing company. Her responsibility within procurement is to evaluate bids and make recommendations to De Havilland Source Selection Board (SSB). She must make a recommendation on a supplier for flap shrouds and equipment bay doors. Since Dollard Plastics has failed to remain competitive by addressing the high pricing by unwilling to lower their price, she has solicited a number of competitive bids from 9 suppliers. We currently have sufficient supply of flaps and doors till the end of 1993, giving us approximately 17 months of inventory. Recent changes at de Havilland meant that we wanted to establish long term, cooperative contracts with suppliers. Normally 6-8 weeks were permitted for the vendors to return their completed bids. The value of the contract under consideration required the more senior management participated. The Bidder Selection Board (BSB) was comprised of representatives from finance and materiel areas. The BSB had four major objectives; review historical data in purchasing and cost patterns, financial data, quality and product support, secondly they produced an estimate on future purchasing trends for the part as well as new costs and finally they assembled a list of potential bidders. Once all bids were normalized they analyzed them, picked the likeliest candidate and a physical inspection was conducted...
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...1. Executive Summary After having full exposure to the cost structure of De Havilland’s Dash 8 airplane I immediately becameaware of their high manufacturing cost which has been caused by the high cost of sourcing the flapshrouds and bay doors from Dollard Plastics of Montreal. The latter showed no flexibility on reducingtheir prices on the above parts when the former was in search of ways to improve their productionefficiencies by reducing the cost attributed to Dash 8 airplane. Kim Tomar, the Financial Analyst at DeHavilland had realized that issue and therefore started the process of finding a new business partner whois capable of meeting a set of standards that De Havilland had developed earlier for their procurementdepartment, had started the process about year and half earlier than the expiry date with the incumbentsupplier.After receiving 9 bids to supply the needed parts, I have recommended Morton to De Havilland’sSource Selection Board (SSB) as prospective vendor for selection provided that Mortonmust pass the set of standards which I mentioned above. Based on the initial information fromthe normalized bids from all nine bidders, the lowest bid was Morton Enterprises. Their bid was18% lower than their nearest competitor, and when I compared prices of the needed components tothe prices supplied by current providers they were between 54% and 75% less expensive.However, beyond parts cost reduction we are also interested in establishing long-termco-operative contracts with...
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...DE HAVILLAND Case Report January 20, 2015 Table of Contents Executive Summary 3 Issues Identified 3 Environmental and Root Cause 3 Alternatives and Options 4 Implementation 5 Recommendations 5 Monitor and Control 6 Conclusion 7 Executive Summary This case report addresses many factors when decisions are made in identifying and working strategically with custom designed components and assemblies. De Havilland Company especially Kim Tomar has a decision to make. A RFQ proposal by Marton Enterprises could bring cost reductions down by 60% for this particular assembly and help with streamlining BOM cost to achieve a reduction of 25%. There’s risk to using a new vendor, including delivery and trust and even if the correct SSB members are evaluating the proposals. There are discrepancies that need to be reviewed and questioned by the Operations, Logistics and Sourcing staff and hidden costs not noted on the price breakdowns ie: soft and hard tooling costs. Marton must prove to the SSB group and OLS that their proposal is solid and can manufacture and meet spec’s as identified by De Havilland Engineers. There also needs to be plan to increase capacity should there be an upswing. My recommendations include two options including a primary and secondary vendor model (mitigating risk of custom components and shortages and working with the existing vendor Dollard Plastics to looks for ways of continuous...
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...[pic] Module TWO - Supply Chain Management DE HAVILLAND INC: Supply Chain Strategy Case Study Prepared By: Pankaj Kapoor Executive summary De Havilland’s Dash 8 aircraft division has only a “year plus” inventory of Flap Shrouds and Equipment bay doors and now they have to decide if they want to continue sourcing these parts from same supplier “Dollard Plastics” a Montreal based supplier or should they start thinking of sourcing these parts from other potential suppliers. Kim Tomar, financial analyst materials of DH has responsibility to gather all related facts, Analysis and come up with report & recommendations. Since De Havilland is now under new management of Bombardier Inc. Kim Tomar has to keep Bombardier’s following new policies in mind while making any recommendations. (Exhibit 2: DH Organizational Chart), • 25% discount on purchases across the board • Establishing 5 year fixed cost contract with suppliers • Consolidation of sources / reduction of suppliers Kim Tomar had received good response from nine potential suppliers on RFQ sent by BSB (Exhibit 3 reflects the bidding structure from each supplier). After normalization, it was evident that Marton Enterprises Inc, offered huge savings and also ready to commit to all policies including fixing the cost for next 5 years...
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...Introduction Faced with a downturn in the commercial aircraft business and reduced military spending, The Boeing Company was forced to downsize approximately 55,000 people over a five-year period. The company's management, organized labor, the local community, multiple levels of government, and community colleges collectively worked together to develop Reemployment Centers to assist in the transition of their specialized workforce into alternative forms of employment. The following is a description of how The Boeing Company successfully completed this effort at downsizing. Downsizing is thought to be an effective human resources strategy to increase global competitiveness. Labor costs, generally one of the largest costs for most organizations can be reduced through downsizing. In many cases the downsizing process includes outsourcing or subcontracting jobs previously performed within the organization. Although organizations often consider downsizing necessary in order to remain competitive, this strategy does not always result in increased organizational profitability and performance. One recent survey conducted by the Society for Human Resource Management reported that only 26% of firms reported productivity improvements while 58% said that productivity was flat or had declined after downsizing (The Washington Post, 1996). In addition, the study found that approximately 54% of companies surveyed cut jobs in 1994 but only 25% expected any further downsizing. Whatever the...
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...Executive Summary de Havilland Inc. (“de Havilland”), a high profile Canadian aircraft manufacturer, must reduce the cost of the materials for the Dash 8 airplane which comprises 65% of de Havilland’s total manufacturing cost as a result of a company directive to reduce parts pricing by 25%. The flap shrouds and equipment bay door supplier arrangements have come up for consideration and the opportunity to satisfy the new strategic sourcing policy of fewer suppliers with long term, fixed contracts, along with reductions in cost of materials, has presented itself by going out to tender. Kim Tomar, Financial Analyst (material) is evaluating 9 RFP submissions for suppliers of flap shrouds and equipment bay doors in order to make a recommendation to de Havilland’s Source Selection Board (“SSB”). Tomar’s evaluation must include a financial evaluation as well as an assessment of the supplier’s viability as a long term supplier. Marton Enterprises (“Marton”) proposes the lowest cost bid and the opportunity to reduce the bill of materials of the Dash 8 although they have not submitted their financial information. Tomar’s recommendations to the SSB include negotiating a contract with Marton and accepting the current bid pricing. Immediate savings to the bill of materials can be realized as the costs of the flap shrouds and equipment bay doors are 25% of the current supplier. Once the recommendation has been approved contract negotiations can begin with Marton. A negotiation...
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...Executive Summary De Havilland is an Aircraft company founded in 1928. In March of 1992 De Havilland was purchased by Bombardier Inc (51%) and the government of Ontario (49%). Due to high manufacturing cost, De Havilland is trying to implement a new cost reduction strategy by partnering with a smaller base of suppliers and utilizing long-term contracts. De Havilland sent out RFQs to nine suppliers and the Financial Analyst, Kim Tomar was responsible to evaluate and recommend the candidates. When comparing price, one of the suppliers, Marton Enterprises had pricing that was less expensive by $2, 061,180 compared to the current provider, Dollard Plastics. De Havilland had approached Dollard and asked for a 25% discount; however, they disagreed and didn’t provide any counter offer. De Havilland was hesitant to switch to Marton as the company did not provide financial information, and was in question as to whether they would be able to support all of De Havilland’s inventory needs. Furthermore, the wide range of low pricing from suppliers was in question as there could have been misinterpretation of the terms and agreement for the bid. De Havilland will need to clarify that Marton is able to perform the duties on a long-term basis and is able to provide and perform up to the service levels to meet standards. To mitigate risk, it would be recommended that De Havilland acquire Dollard Plastics for one year while awarding Marton the majority of the production of the flap shrouds...
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...Executive Summary Financial analyst, Kim Tomar is a Financial Analyst at De Havilland Inc, a Canadian aircraft manufacturing company. Her responsibility within procurement is to evaluate bids and make recommendations to De Havilland Source Selection Board (SSB). She must make a recommendation on a supplier for flap shrouds and equipment bay doors. Since Dollard Plastics has failed to remain competitive by addressing the high pricing by unwilling to lower their price, she has solicited a number of competitive bids from 9 suppliers. We currently have sufficient supply of flaps and doors till the end of 1993, giving us approximately 17 months of inventory. Recent changes at de Havilland meant that we wanted to establish long term, cooperative contracts with suppliers. Normally 6-8 weeks were permitted for the vendors to return their completed bids. The value of the contract under consideration required the more senior management participated. The Bidder Selection Board (BSB) was comprised of representatives from finance and materiel areas. The BSB had four major objectives; review historical data in purchasing and cost patterns, financial data, quality and product support, secondly they produced an estimate on future purchasing trends for the part as well as new costs and finally they assembled a list of potential bidders. Once all bids were normalized they analyzed them, picked the likeliest candidate and a physical inspection was conducted of the vendors plant; this could...
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...De Havilland Inc. Report on Competitive Bidding and Negotiation Presented to Louis Girard Prepared by: Michel Boyer 10046739 February 8th, 2016 Table of Contents Executive Summary 3 Issue Identification 4 Root Cause Analysis 5 Alternatives and Options 6 Recommendations 7 Implementation 9 Monitor and Control 10 Executive Summary The current inventory of parts, flaps shrouds and equipment bay doors, to produce the Dash 8 airplane will run out in approximately 18 months. In keeping with the companies’ goals of reducing costs, we have asked our suppliers to accept a 25% reduction in prices. When it came to the actual, they were not willing to budge. For that reason, we issued an RFQ. We obtained 9 bids. The lowest bidder was Morton Enterprises. After evaluating the bids, we identified two options, the first one to enter into negotiation with Morton so they can become the preferred supplier of flap shrouds and equipment bay doors. The negotiation must also include transportation, supply, support, etc. The second option is to also negotiate, at the same time as Morton, with the next 2 lowest bidders, Das Components and Lakeshore Industries. Our recommendation is to start negotiation with Morton as soon as possible. Morton’s price will permit us to reduce our manufacturer costs and enter into a long term relationship. A bid clarification meeting must be held quickly to make sure that Morton’s bid...
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...Strategic Management (Semester A) (3BUS0118) Module Leader: Keith Seed Words Account: Report (3838), Appendix (2092) Group Members: Jian Feng Ding (08199930) Long Cheng (08198940) Lin Xu Zhen Xu (08201511) Qi Hua Jiang (08199004) Date: 10/12/2009 CONTENTS TITLE 1 TABLE CONTENTS 2 INTRODUCTION 3 MAIN BODY PART 1--- CURRENT ISSUES PESTEL framework 4 PART 2--- CHALLENGES & COMPETITION POTER’S five forces 6 SWOT analysis 10 Corporate governance in the Myspace.com PLC 10 Accountability to Stakeholders 11 Corporate Social Responsibility PART 3--- STRATEGIC CAPABILITY Foundation of Strategic Capability 11 Resource and Competence 11 Human Resource Management 12 Cost Efficiency 12 Value Chain 13 CONCLUSION ...
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...CONTENTS Page Abstract 3 1. Introduction 4 2. External environment of Apple 4 2.1. Macro-environment Analyse PESTEL 4 2.1.1. Political 4 Contents Page Abstract 3 1. Introduction 4 2. External environment of Apple 4 2.1. Macro-environment Analyse PESTEL 4 2.1.1. Political 4 2.1.2. Economic 5 2.1.3. Social 5 2.1.4. Technological 5 2.1.5. Environmental 6 2.1.6. Legal 6 2.2. Industries and sectors - Analyse Five Forces framework 6 2.2.1. The bargaining power of suppliers 7 2.2.2. The bargaining power of customers 7 2.2.3. Risk of entry by potential competitors 8 2.2.4. Substitutes 8 2.2.5. Rivalry 9 3. Internal environment of Apple 9 3.1. Brand positioning 9 3.2. Life cycle of Apple Inc. Core Product 10 3.3. Finance 10 3.4. Human Resource Process 11 CEO 11 4. Current Strategy 12 4.1. Business-level strategy 12 4.1.1. Differentiation strategy 12 4.1.2. Strategy to manage rivalry 14 4.2. Global Strategy 15 4.2.1. Apple’s foreign operations 15 4.2.2. Global retail stores 16 4.2.3. Brand loyal and value promotion 16 4.2.4. Acquisition strategy 16 4.2.5. Methods used by Apple in order to enter new markets 17 5. Conclusion 18 6. References 19 7. Bibliography 21 8. Appendix 22 9. Group log 25 9.1. First meeting 25 9.2. Second meeting 25 9.3. Third meeting 25 9.4. Fourth meeting 26 9.5. Fifth meeting 26 9.6. Sixth meeting 26 10. Reflection 28 Nguyen Thi Diu 28 Hany Jawad 28 He Miao 28 Hani Elyas 29 Yousaf Khan 29 Abstract ...
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