CASE STUDY P & B Energy Systems Limited (P & B), a wholly owned Zambian company proposes to construct two solar photovoltaic power plants in Lusaka and Serenje Districts (one plant in each district) to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One hundred Million United States Dollars (US$40,000,000.00) and is projected to be completed in one year. P & B proposes to embark on the project in June 2023. You are the Project Manager for New Concepts Consultants who have been contracted by the P & B to undertake the detailed design and construction supervision of the project. 1. As the Project Managers, you have two options for the procurement of contractors to construct the power plants, namely, Open Bidding and Negotiations. Which method would you recommend to the P & B and why? Outline the procedure you would follow, for the recommended procurement method, to arrive at contract award. 2. Identify five risks that could affect the implementation of the project and suggest mitigation measures for each of the identified risk?

CASE STUDY P & B Energy Systems Limited (P & B), a wholly owned Zambian company proposes to construct two solar photovoltaic power plants in Lusaka and Serenje Districts (one plant in each district) to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One hundred Million United States Dollars (US$40,000,000.00) and is projected to be completed in one year. P & B proposes to embark on the project in June 2023. You are the Project Manager for New Concepts Consultants who have been contracted by the P & B to undertake the detailed design and construction supervision of the project. 1. As the Project Managers, you have two options for the procurement of contractors to construct the power plants, namely, Open Bidding and Negotiations. Which method would you recommend to the P & B and why? Outline the procedure you would follow, for the recommended procurement method, to arrive at contract award. 2. Identify five risks that could affect the implementation of the project and suggest mitigation measures for each of the identified risk?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Department of Health contractor for overpriced faceshield and PPE supplies has been able to summarize its total annual fixed costs to as PHP5,000,000 and the total variable cost of production for each set of overpriced faceshield and PPE is PHP2000. A. If IATF agreed that only 5000 units is expected to sell to the government this year, what should the per unit selling be to make a 25% profit this year? B. If foreign sales of 3000 units per year is to be added to the 5000 units government contract above and a % profit is acceptable for this contractor again, what could be the new selling price per unit?
DiHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. *What is the best decision alternative under Maximax criterion? (Provide complete decision table solution)
DiHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. *a.) Which decision alternative has a minimum payoff value from the maximum regrets?b.) Which realism approach decision alternative has maximum payoff? c.) Which equally likely decision alternative has the best payoff value?
As a result of the Government of Bahrain's decision to close indoor restaurants, Maryam, a restaurant owner, and manager, evaluated two options. The first is to build a drive-thru, and the second is to join an Online Food Delivery Business. She is only concerned about the cost and accordingly conducted a cost analysis of both options. She decided to go online as it is 70% less costly than the drive-thru option. In assessing the alternatives, specify the criteria that Maryam used and the three criteria that she ignored. Explain your answer.
Business Policy Ltd., a limited liability company registered and set up by the Level 400 Policy Class of the 2015/2016 Academic Year are beginning a project to market students' magazine on University of Ghana campus. It is estimated that the company will sell one magazine for GHC10.00 with a profit of GHC2.50 per magazine. To achieve their targets, it is required that they able to identify a realistic objective in relation to achieving all their targets. For their estimates, they plan to look at advertising rates for the local newspapers on campus and get population figures from the Academic Office, University of Ghana. They also plan to relate their promotional budget to expected sales and profit, and they have also decided to set up a timescale for everything they intend to achieve. Required a) State and explain the six (6) elements of the framework for setting objectives b) Using the framework in (a), discuss how Business Policy Limited can set a realistic objectives for its…
SBC Packers Co. is a logistics company owned by Engr. Sheera Bee Cabanlit. Anticipating the growing demand for delivery services, she developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.4. * What is the best decision alternative under Maximax criterion? (Provide complete decision table solution) What is the best of the best payoff value? What is the best of the worst decision alternative? Which decision alternative has a minimum payoff value from the maximum regrets? Which realism approach decision alternative has maximum payoff?
Metro has initiated discussions on attracting rail service. A depot would need to be constructed, which would require $2.5million in land and $7.5 million in construction costs. Annual operating and maintenance costs (O&M) for the facility would be $150,000, and personnel costs would be an additional $110,000. Other assorted costs would be born by the railroad and federal authorities. Annual benefits (B) of the rail service are estimated as listed: $120,000 for Railroad annual payments, $25,000 for Rail tax charged to passengers, $20,000 for Convenience benefits to local residents, and $12,000 for Additional tourism dollars for Metro. Apply the B-C ratio method, with a MARR of 8% per year and 20 year study period, to determine if the rail service should be established. a. BC ratio=2.12, good project b. BC ratio=-1.76, good project c. BC ratio=1.69, good project d. BC ratio=0.14, not good project
The newly appointed board member of Zig-It Limited demands a reprioritisation of invested funds to expanding operations in Africa. She has identified factories in Kenya that can be merged into the current operations of the company to extend the motor manufacturing footprint across the continent.Explain to the board of directors the significance of the risk assessment process, and the anticipated risks that should as minimum be considered.
CASE STUDY P & B Energy Systems Limited (P & B), a wholly owned Zambian company proposes to construct two solar photovoltaic power plants in Lusaka and Serenje Districts (one plant in each district) to address the power shortages being experienced as a result of low water levels at Kariba Dam and Kafue Gorge. The project is estimated to cost One hundred Million United States Dollars (US$40,000,000.00) and is projected to be completed in one year. P & B proposes to embark on the project in June 2023. You are the Project Manager for New Concepts Consultants who have been contracted by the P & B to undertake the detailed design and construction supervision of the project. curement 2. Identify five risks that could affect the implementation of the project and suggest mitigation measures for each of the identified risk?