Reference no: EM132243227
TELOXY ENGINEERING (A)
Teloxy Engineering has received a one-time contract to design and build 10,000 units of a new product. During the proposal process,management felt that the new product could be designed and manufactured at a low cost. One of the ingredients necessary to build the product was a small component that could be purchased for $60 in the marketplace, including quantity discounts. Accordingly, management budgeted $650,000 for the purchasing and handling of 10,000 components plus scrap.
During the design stage, your engineering team informs you that the final design will require a somewhat higher-grade component that sells for $72 with quantity discounts. The new price is substantially higher than you had budgeted for. This will create a cost overrun. You meet with your manufacturing team to see if they can manufacture the component at a cheaper price than buying it from the outside. Your manufacturing team informs you that they can produce a maximum of10,000 units, just enough to fulfill your contract. The setup cost will be $100,000 and the raw material cost is $40 per component. Since
Teloxy has never manufactured this product before, manufacturing expects the following defects:
|
Percent Defective
|
0
|
10
|
20
|
30
|
40
|
|
Probability of occurrence
|
10
|
20
|
30
|
25
|
15
|
All defective parts must be removed and repaired at a cost of $120 perpart.
Answer the questions below:
1. Using expected value, is it economically better to make or buy the component?
2. Strategically thinking, why might management opt for other than the most economical choice?
|
Explain the internal and external issues
: Much of the information you will need to complete this segment can be found in the case study. However, you are welcome to conduct further research as needed.
|
|
Describe an it or similar business project you have done
: What was the scoop, deliverable, and results of the project? If you had to do the same project again, what changes will you recommend?
|
|
Analyze the role of the it manager in business
: Analyze the role of the IT manager in business and create a job description for an IT Manager.
|
|
What role do values and culture play in creation
: What Role do values and culture play in creation of competitive advantage at ESPN? What resources and capabilities does the company possess?
|
|
Why might management opt for other than the economical
: Strategically thinking, why might management opt for other than the most economical choice?
|
|
Create a qualitative research scenario
: Using your identified phenomena from Discussion 2, create a qualitative research scenario using the case study approach. Additional information related.
|
|
What your lived experience doing your mba program
: What your lived experience doing your MBA program? how impact the lived experience, Family, Self -core, Professors, Peers, and Life balance.
|
|
Analyze essential elements of organizational culture
: In addition, consider the ideas and information exchanged in this week's Discussion. Continue to analyze essential elements of organizational culture.
|
|
Examine the advantages of using a gantt chart
: Examine the advantages of using a Gantt chart over a PERT chart and vice versa. Determine when it is appropriate to use one over the other.
|