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Selection Of A Pressure Vessel Manufacturer - Essay Example

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The two visits in essence should have been to judge whether Atomic products or Nuclear vessels was better qualified and most feasible to build the vessel that is required by Oceanics. So when they do have the vessel built Oceanics would choose the better of the two short listed companies.
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Download file to see previous pages Further more the visit was to check the offer made in the proposals. This means that if Atomic products or Nuclear vessels quoted price x, is that what it is going to be at the end, why is the price x, is there better Quality because of higher price, are they offering something more because of the price and so on. In short , discover the story behind the story.
Furthermore in terms of feasibility both were relatively feasible. Atomic products had a fixed price which was lesser to Nuclear vessels. However Nuclear vessels because of their variable cost they could end up to be cheaper then Atomic products. Further feasibility factors are discussed later in the answer.
The second factor was to weigh the pros and cons of the two short listed suppliers. Even though this is discussed in detail in answer 3 and four, but in essence the discovery was that both of them were in comparison better in one field and relatively worse of in the other field.
The fourth factor was to discover the story behind the story. In essence they did discover the story behind the story. The detailed answer is in question 4, but the summary of it would be that in nature, motivation and cooperation which play an essential part in any company even though on paper (proposal) one seems to be better. Furthermore a product is not good if it is cheap and of bad quality. Likewise guarantee is no good if the product does not meet specifications. In the end one ends up with no product with a period of time lost.
The fifth factor was to evaluate whether the vision of Oceanics Company would materialize if the task was given to Atomic products or Nuclear vessels. This factor would be highly dependent on the perception of the Oceanics representative. As the case speaks that after the proposal and after the two visits Jack Tooles, the representative of Oceanics Company was in split between the two companies. Therefore the vision that Oceanics Company has, is applicable to both companies.
Hence this completes the evaluation for both companies.
3. Based on the face value of the written proposals, which company appeared to submit the better offer
which is better
Price.(estimated costs) x
Price.(variable costs)
Hence resultant lower costs x
Shop facilities x x
Past experience x
Need for Subcontracting x
Organization. x x
Delivery. x x
Guarantee x
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