Case 1 Avion Inc Susan Dey And Bill Mifflin Procurement Manager ✓ Solved
Case 1: Avion Inc. Susan Dey and Bill Mifflin, procurement managers at Avion Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Tech-nologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. Susan: I don’t believe what I am seeing. This supplier was clearly a star when we performed our supplier visits before awarding the contract for the new Amrod product line.
Bill: I’m not pleased. I was on the team that performed the audit and site visit. Foster’s management was so smooth—they indicated they could meet all our requirements. I feel like we’ve been misled by this supplier. Susan: Didn’t you look at their processes and quality systems?
Bill: Sure we did. Everything checked out fine. But now every other shipment has some problem, and the delays are hurting our ability to get our product to our customers. What really struck us about this supplier was how innovative they were. Foster’s biggest drawback was their size—they lacked some depth at key manufacturing engineering positions.
Maybe that’s why they are having problems. It could be that someone has left the company. Susan: We are going to have to address these problems quickly. Bill: I’ll tell you what I am going to recommend. We should begin immediately to look for another supplier.
I never was a fan of these single-source contracts. They leave us open to too much risk. Susan: But won’t that take a long time? Bill: Sure. We’ll have to perform another supplier search with team visits.
New tooling could really cost, too. This could take months. Susan: Has anyone talked with the supplier about these problems? Bill: Kevin went over personally today and talked with the production manager. He didn’t have much time to explain, but he indicated on the phone that Foster’s production manager said we should accept responsibility for a good part of the problems that are occurring!
Bill: I’ll tell you what I am going to recommend. We should begin immediately to look for another supplier. I never was a fan of these single-source contracts. They leave us open to too much risk. Sure.
We’ll have to perform another supplier search with team visits. New tooling could really cost, too. This could take months. Susan: Has anyone talked with the supplier about these problems? Bill: Kevin went over personally today and talked with the production manager.
He didn’t have much time to explain, but he indicated on the phone that Foster’s production manager said we should accept responsibility for a good part of the prob-lems that are occurring! Susan: Why should we? I think they are just trying to shift the blame for their poor performance. At this point, Kevin O’Donnell, another procurement manager, entered the room. Bill: Kevin, glad you’re here.
We were just discussing how Foster is trying to blame us for their problems. I think we should dump them fast! Kevin: Yeah, well, I’ve got news for you two. I think Foster’s production manager is cor-rect. I think I would be frustrated with us, too!
Susan: What are you talking about? Kevin: I spent a good part of the day over at Foster and learned some interesting things. For example, do either of you remember what we told Foster the monthly volume requirements for the product would be? Bill: I remember exactly. The volumes were projected to be 2,500 units a month.
So what’s the problem? Kevin: We need to talk with our production group more often. The monthly volumes are now over 4,000 units a month! And not only that, our production group now wants material within 10 days of a material release rather than two weeks. We have also been changing the final material release quantities right up to the last minute before delivery.
Bill: Uh oh. I remember on our site visit that the most their production system could handle was 3,500 units a month. And a two-week lead time was about as low as they could go. Susan: But why didn’t they inform us that these changes were causing problems? They still have some explaining to do.
Kevin: Apparently they tried. What did your team tell this supplier about communicating with us after you finished negotiating the contract? Bill: We said that any operational problems or issues have to go through our materials management people. The team was responsible for evaluating and selecting the supplier, and then negotiating the agreement. Kevin: Foster’s production manager produced a log detailing seven memos and letters outlining the impact of our production and scheduling changes on their operation.
He also called us several times with no response. Each of these inquiries received little attention on the part of our materials group. I’m not sure how fond Foster is of us as a customer. I think they are anxious for this contract to wind down so they can dump us! Susan: What do we do now?
Music of the Romantic Period Characteristics of Romantic Period Puts emphasis on self-expression and individuality of style Created music that reflects the composer’s personality Explored a universe of feeling that included flamboyance and intimacy, unpredictability and melancholy, rapture and longing. Romantic composers increased the power of the brass section calling for trombones, tubas, more horns and trumpets. Flute were required to play in the low register. Violins were asked to strike the strings with the wood of their bows. The piccolo and contrabassoon was added as well as the expanded keyboard of the piano.
More Characteristics of the Romantic Musical nationalism was expressed when romantic composer created music with a specific national identity. Program music is instrumental music associated with a story, poem, idea, or scene. One of the most distinctive forms in romantic music was the art song, a composition for solo voice and piano. Franz Schubert () The earliest master of the romantic art song. Composed more than 600 art songs.
Erlkonig (The Erlking; 1815) The Schumanns Robert Schumann () Embodied musical romantism Composed mainly for piano Fantasiestucke for Piano (Fantasy Pieces for Piano) Clara Wieck Schumann () Er ist gekommen in Sturm und Regen (He has come in Storm and Rain) Frederic Chopin () The only great composer who wrote almost exclusively for the piano No composer has made the piano the piano sound as beautiful as Chopin Nocturne in E Flat Major – A nocturne, or night piece Etude in C Minor- An etude is a study piece designed to help a performer master specific Franz Liszt () Music is controversial Some consider it vulgar and bombastic; others say its extroverted romantic rhetoric The creator of the symphonic poem or tone poem – a one movement orchestral composition based on literacy or pictorial ideas Transcendental Etude No.
10 in F Minor Felix Mendelssohn () Wrote an enormous amount of music in all the forms of his day except opera Concerto for Violin and Orchestra in E Minor Wedding March Hector Berlioz () One of the first French Romantic composers Music sounds unique Symphonie fantastique (Fantastic Symphony) Fourth Movement: March to the Scaffold Symphonie fantastique (Fantastic Symphony) Fifth Movement: Dream of a Witches’ Sabbath Antonin Dvorak () Leading composer of Czech national music Infused his symphonies and chamber music with the spirit of Bohemian folksong and dance Encouraged American composers to write nationalistic music Symphony No. 9 in E Minor (From the New World) Peter Ilyich Tchaikovsky () Johannes Brahms () Symphony No. 3 in F Major Georges Bizet () Is the composer of Carmen Giuseppe Verdi () The most popular of all opera composers Composed not for the musical elite, but for a mass public whose main entertainment was opera Rigoletto Giacomo Puccini () Created some of the best-loved operas La Boheme Richard Wagner () He influenced all the arts (musicians, poets, painters, etc.) Die Walkure (The Valkyrie)
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In today’s dynamic business environment, supplier relationships are paramount for ensuring smooth operational flows and maintaining product quality standards. The case of Avion Inc. highlights significant issues stemming from its relationship with Foster Technologies. The procurement managers—Susan Dey, Bill Mifflin, and Kevin O’Donnell—are facing critical decisions concerning their supplier's performance, which in turn affects Avion's product line, the Amrod. This essay delves into the problems identified in the case, the ensuing analysis, and possible strategies to bridge the gap between Avion Inc. and Foster Technologies.
Analysis of Supplier Performance Issues
The performance report indicates deteriorating performance in two crucial areas: material quality and on-time delivery. Initially, Foster Technologies appeared to be a stellar supplier, demonstrated by successful audits and management assurances pertaining to the high standards they could meet (Handfield & Nichols, 2002). However, the reality is that the quality issues and delays in delivery indicate that Foster might not be equipped to handle the demands currently imposed by Avion (Monczka et al., 2015).
Communication Breakdown
A crucial aspect underscored in the case is the communication breakdown between Avion and Foster. The production manager at Foster suggested that Avion should accept part of the responsibility for the challenges being faced. Through his discussion with Kevin O'Donnell, it became clear that Foster had made multiple attempts to communicate operational constraints, but those communications went unaddressed (Christopher, 2016).
The procurement team at Avion established a conduit through the materials management group for any operational issues, thus not allowing Foster’s management to communicate directly with those responsible for handling volume and lead time changes. This led to the suppliers becoming frustrated, feeling sidelined in a partnership scenario that should ideally be collaborative.
Changing Demand Patterns
The case also elucidates a shift in demand patterns that Avion imposed on Foster without proactively informing them or considering Foster's operational capacity. Initially, the monthly volume requirement was set at 2,500 units, which then unexpectedly surged to over 4,000 units (Gottfredson, 2005). This type of abrupt escalation, coupled with demand for reduced lead times, is particularly concerning, highlighting the necessity for clearer forecasting and collaboration between teams within Avion Inc.
The strategic approach of single-source contracting employed by Avion makes them particularly vulnerable to these kinds of problems (Handfield & Nichols, 2002). While single-source procurement can streamline operations, it also results in limited flexibility during crises. The decision to pursue an alternative supplier could be risky and might require substantial investment in terms of time and resources.
Proposed Actionable Strategies
Enhancing Supplier Communication
An immediate step Avion should undertake is the enhancement of communication protocols with Foster Technologies. Establishing regular communication meetings focusing on performance evaluation, demand forecasting, and operational challenges can empower both parties to address issues before they burgeon. Utilizing technology tools such as Vendor Management Systems (VMS) or having agreed-upon Key Performance Indicators (KPIs) can serve as effective monitoring and communication frameworks (Cohen & Roussel, 2005).
Supplier Performance Management
Implementing a Supplier Performance Management (SPM) framework can facilitate a systematic approach to evaluating supplier performance against established benchmarks. This includes conducting periodic joint business reviews with Foster to assess delivery times, quality metrics, and operational scalability as per shifting demand patterns (Krause et al., 2007).
Collaborative Planning
Avion's procurement team should consider autonomous forecasting and collaborative planning with their suppliers. Using a collaborative planning, forecasting, and replenishment (CPFR) model can help align supply capabilities with customer demands while improving lead times and reducing stockouts (Mentzer et al., 2001). Collaboratively sharing forecasts and production plans allows both Avion and Foster to adapt to changes in demand proactively rather than reactively.
Exploring Dual-Sourcing Strategies
While single-source contracts have benefits, such as stronger supplier relationships and potentially lower prices, adopting a dual-sourcing strategy might mitigate risks (Ellram, 2002). Securing a secondary supplier can serve as a contingency plan to meet future demands without compromising on delivery efficiency or quality.
Conclusion
In conclusion, the case of Avion Inc. illustrates the delicate balance required in managing supplier relationships effectively, especially under volatile market conditions. Issues such as poor communication, changing demand patterns, and the risks associated with single-source supplier contracts have highlighted urgent needs for reevaluation of supplier management strategies. Through enhanced communication, rigorous performance management, collaborative planning, and exploring dual-sourcing options, Avion can not only resolve current conflicts with Foster Technologies but also pave the way for more resilient supplier relations in the future.
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