Executive Summary
To: John Carter, Vice President of Supply
From: Gordon Yarrow, Supervisor of Materials Purchasing
Subject: Pole Manufacture
Issue: As you know it is my responsibility to recommend viable suppliers to manufacture the new tubular poles to a functional engineering design. With help from the consulting engineering group functional specifications for the poles, cross arms, and hardware had been furnished.
We considered various other options to conclude this assignment, as follows: * Issuing RFQ’s to potential suppliers * Hiring an external consultant * Continue to use current supplier
Although these were viable, we feel that the RFQ process will provide the best strategic solution for Moren, while also achieving a much better long-term solution.
I look forward to receiving your approval of this recommendation, so that it can proceed immediately.
Respectfully,
Gordon Yarrow, Supervisor of Materials Purchasing

Situational Analysis: Item | So What ? | Timeline: With a 3 year timeline for the project choosing viable supplier is of upmost importance | Deciding to start with half the project first allows Moren to assess the project | Exceptions: This is something that Moren needs to consider should any problems arise during the project | This will help to maintain that the project stays on time and does not encounter any project creep as well determine if the exceptions should or shouldn’t be accepted | Suppliers: Awarding the project to one supplier | Having prior experience with this company will be comfortable for Moren going forward, but at the same time there is always risks involved with new projects | Hiring a consultant: Provide an excellent evaluation of viables | This helps the company relieve pressure in that it gives better prospective analysis in choosing best fit for the company | Progress Reports: Allows Moren to keep communication strong during supplier selection | Deciding which supplier to choose is one of the most important parts as the company’s reputation is depending on this company to uphold its stature | Requirements: Having specific qualities that need to be in place | Selecting the correct supplier that meets the requirements of the job will allow the company to have faith the job will be done judiciously | Testing: Set up a mock testing area to ensure poles meet standards | Engineering test are a must if there is any failures in the field this could be a huge blow to the company already dealing with a hard timeline and customer satisfaction |

Problem Statement:
How can Moren Corporation find the best overall solution to their manufacturing of the tubular poles requirements while managing time constraints, optimizing cost, new technology and customer satisfaction?
Analysis:
Strengths: * Established as one the largest power utility suppliers in the eastern United States in 1895 * Service a highly industrialized area of 10 fossil-fueled plants * Assets in of over $19 billion with demand doubling every decade * Re-investment strategies in increasing its kilowatt capacity * Company is known for its advanced technology and has good public relations

Weaknesses: * No prior knowledge in dealing with new tubular poles * Testing the new poles to ensure quality and capability

Opportunities: * Continue to gain even better public relations with an esthetically pleasing an more reliable power source * Grow existing relationship should the company choose to continue to work with current supplier Threats: * Possibility of failure dealing with new tubular pole technology * Attempting such a large amount of the project with no prior experience with new technology could set the project in turmoil and result in loss of customers * Not finishing on time * Examining the exceptions and dealing with these could cause friction between the relationship of the supplier

Qualitative: * Listening to public opinion and keeping an emphasis on higher standards on pleasing customer satisfaction * Ensuring the proper selection of qualified people and suppliers as to relieve some of the strain on the company * Keeping in accordance with adopting technological trends * Planning and dividing the job into phases to meet schedule deadlines

Quantitative : Bids for Pole Manufacture

* Current budget = $90,000,000 – Engineer 1,800,000 = 88,200,00/2 For half of the project = 44,100,000 * Norris Steel Co. = 24,052,000 * Structures Cdn., Ltd. = 24,160,000 * Henry Nelson Co. = 24,640,000 * Jordan Pole Co. = 28,396,000
All bids are well below the budget allowing for any contingencies to the plan

Alternatives: Alternative | Pros | Cons | Resources/Issues | Feasibility | Thoughts ? | 1.Do nothing | There are no pros to this suggestion | The company will get passed by if they don’t continue to improve | No additional resources are needed to do nothing | Really not feasible only short term here | The company needs to keep up with the changing market or they will get passed by | 2.Select supplier | Gain new relationships with new company which helps the company to more diverse and strategic | Could cause some friction between current suppliers | Issuing RFQ’s to select a viable supplier | Very feasible this is an absolute necessity to help the company grow | Expanding the companies supplier base allows them to be more competitive | 3.Dealing with exceptions | Ensuring that specifications are being met | Not dealing with exceptions could lead to disaster and costly maintenance in the field | Setting up meetings to discuss and tackle the exceptions in order to make the best product | Very feasible the company is relying on the supplier to uphold its reputation | They will need to work together to reach a mutual agreement on the exceptions in order to continue a working relationship | 4.Engineering testing | To ensure that the new poles will meet standards set by Moren | With no testing the company is taking a huge risk, especially with no prior experience with tubular poles | The resources needed are engineering drawings and compliance with all specifications | Feasible, they must do testing if they want to succeed in this project | Without proper testing in a new type of pole the company will be taking a huge risk in their choice of supplier and that company’s ability to get the job done | 5.Extend timeline | Will allow for proper testing and dealing with exceptions from the chosen supplier | With extension of timeline could be more costly but there appears to be more money in the budget that could help this situation | No additional resources needed, issue that might arise could be customer dissatisfaction due to delay | Feasible it’s the right thing to do to protect the company’s interest | It would be better for the company to extend the timeline and get things right at the production phase rather than in the field when they would have to deal with the customers and restoring power |

Recommendations & Action Plan:
Schedule:
Project has a timeline of 3 years with three phases involving engineering, pole manufacturing and installation.