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Fabtek b2b PDF

The document discusses several potential customer orders that Fabtek is considering: 1. Lightfoot-Ops - A technical challenge but utilizes Fabtek's engineering expertise and experience with similar products. Progress payments are possible. 2. Pierce-Pike - A potential new customer with a simple design and reliable cost estimates. Progress payments are possible on material. 3. WorldWide - An important opportunity for both manufacturing and marketing to develop a standard product line and add new capabilities. However, there is no progress payment and conservative cost estimations carry risk of penalties for delay. 4. Kathco - A one-time order that requires no welding, which is Fabtek's constrained resource.

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Mohit Khandelwal
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162 views8 pages

Fabtek b2b PDF

The document discusses several potential customer orders that Fabtek is considering: 1. Lightfoot-Ops - A technical challenge but utilizes Fabtek's engineering expertise and experience with similar products. Progress payments are possible. 2. Pierce-Pike - A potential new customer with a simple design and reliable cost estimates. Progress payments are possible on material. 3. WorldWide - An important opportunity for both manufacturing and marketing to develop a standard product line and add new capabilities. However, there is no progress payment and conservative cost estimations carry risk of penalties for delay. 4. Kathco - A one-time order that requires no welding, which is Fabtek's constrained resource.

Uploaded by

Mohit Khandelwal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Fabtek (A)

Case Topics: Product policy Cross Function Alignment (Marketing & Manufacturing) Resource Allocation Bid Pricing Decision : Customer , Order , Product Emphasis on Costing Constrained Capacity Qualitative Variables that Influence Product Mix and Pricing

Group No Amit Gupta Bhavesh Pande Prabal Thakurta Tanweer Alam


1

Synergy Between Operations and Marketing


Lightfoot-Ops Technical Challenge. Fits image and capability Utilize engineering expertise. Long-run and repetitive Experience w/Similar products. Clear Specs and scope. Progress payments. Contribution of 20% Viatali-Mktg Similar to previous jobs Simple design & reliable cost estimates. Progress payments. Good market potential Allows adequate delivery time. Customer is not price sensitive.

Constrained Resource -Contribution


Refco Selling price,in 000 Contribution ,in 000 % contribution Welding Const hrs Contribution /hr Fabrication Cont hrs Contribution /hr Mechanist Contr hrs Contribution /hr Cumulative 6000 1035 17 34800 30 6500 159 8700 119 308 Pierce World Wide Pike 3900 765 20 6900 111 2750 278 1000 765 1154 2400 294 12 7600 39 2950 100 830 354 493 Cathco 1500 270 18 0 infinite 4900 55 1700 159

Refco
Major Customer (17% of Revenues) High Labor (welding)- Constrained Resource High 14% total labor higher probability of wrong estimation . Large order (Super Whopper) Reject order - lose account /other future orders Familiar Production process Progress Payments Contribution Margin (?)
4

Pierce-Pike
Potential New Customer High material, Low welding- better estimate New fabrication technique Progress payments on material Unhappy with present suppliers Contribution Margin (?)

WorldWide
Imp to both Manufacturing & Marketing Opportunity to develop standard product line Add new capability No Progress Payment Conservative Costs estimation Risk - Penalty for Delay Sub contract: Heat TreatmentDevelop capability inhouse (?) Contribution margin(?)

Kathco
One-time order No welding required, which is the prime constraint Contribution Margin (?)

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