Those WR93 castings you ordered from Roberts are no good, Marsha. They are too s

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Those WR93 castings you ordered from Roberts are no good, Marsha. They are too short by a substantial margin, so I have no choice but to reject the whole batch. What do you want me to do with the? "Just hold on to them for a while, Frank, 'til I find out what's going on here. I will get back to you shortly Marsha Dinsmore, buyer at Ranek, Inc., had just received the bad news from Frank Wild, head of quality assurance atRanekregarding the 172 aluminum castings she had ordered for the first assembly run of the new PSW Model two weeks hence. She was not expecting any difficulties with this order, since she remembered buying the same castings for the earlier PSV Model. Marsha realized that a lack ofcastings could have a disastrous impact on the PSW assembly and introduction plans, for which extensive advance promotion had already begun. Therefore, she immediately tried to find out what went wrong with this order A few hours later Marsha found out that the $150 casting did not meet specifications as shown on the engineering drawing sent to the supplier. All previous deliveries of the same casting had been identical in defects. However, the chief engineer, John Vickers, had made some adjustments for the PSV Model which made it possible to use the castings as supplied. According to John Vicers, it was not possible to make the same adjustments for the PSW Model, nor was it possible to fix up the defective castings. The PSVModel Plans Current plans for the PSV Model called for continued assembly until the PSW Model had taken over the complete market No one was quite certain how many more PSVs might be made. Sales estimates ranged from a minimum of 100 over the next year to 500 over the next three years. It was unlikely that repairs of old PSV models would require more than 10 castings per year for the next ten years. Roberts Foundry Steve Roberts, president and owner of Roberts Foundry, the supplier of the castings, claimed that theWR93 castings were exaty the same as those of all earlier orders which had all had been accepted by Banek He was very surprised to hear from Marsha that there were difficulties with the castings. The normal lead time on aluminum castings with Roberts foundry was about eight weeks. Marsha knew that Mr. Roberts was hungry for more business, even though his shop was very busy. He was currently working on anumber of other Ranek orders. Roberts Foundry received about 40% of Ranack's $4,000,000 total aluminum casting business with Gaskell and Sons, al long term reliable supplier receiving the remaining 60%. The current lead time with Gaskell was about ten weeks. What action to you recommend that Maia take?

Explanation / Answer

Marsha should try to perform a root cause analysis for the exact reasons behind the anomaly in the castings for the new PSW model. As the current batch of 172 castings could be used for the existing PSV model, they should be routed to their assembly.

While the engineering information should be supplied accurately to Roberts Foundry so that they can work on it and ensure that the subsequent deliveries are in line with the requirements for the PSW model.

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