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Selection of a Pressure Vessel Manufacturer

Buy custom Selection of a Pressure Vessel Manufacturer essay

What specific areas and activities should the Oceanics group have investigated on its two visits?
The specific areas and activities should the Oceanics group have investigated on its two visits are enlisted below:
Visit facility
Meet the people responsible for the job
Engineering work facility relating to the work on the vessel
Rigid cleaning specifications
Shop area capacity
Condition of  manufacturing equipment
Out ourcing
Production rates
Shop facilities
Previous production experience
Capabilities
On hand order for vessels of larger capacities
Work interruptions
Employees and floor area
General appearance
Laboratories and inspection facilities
The response of manager of production about under progress jobs
Inspection and quality control
Control of incoming material
Contract cost
Understanding of requirement
Control between the management and the shop floor
Evaluate each supplier on each of the above atoms using information obtained on the field visits.
The evaluation of Atomic Products Company N.Y. and Nuclear Vessels, Inc., Houston, Texas as supplier on each of the above atoms using information obtained on the field visits is tabulated below:

Specifications

Exhibit 1

Atomic Products Company N.Y.

Exhibit 2

Nuclear Vessels, Inc., Houston, Texas

Rigid cleaning specifications

The firm does not have enclosed environment for cleaning vessel and adhere to the surgical cleaning requirements.

Adequate space for a cleaning room

Shop area capacity

Does not have sufficient shop area inside the building to perform the job.

 

Condition of  manufacturing equipment

Most of the machines, such as vertical boring mill, horizontal mill planner, radial drill and beam press were comparatively new and well-maintained.

Machines were of considerable age and not of large capacity but adequate for the job.

Outsourcing

No outsourcing

Some outside subcontracting work for the close machining tolerances would be required. The possibility of getting work from other divisions at Texas exists as well, which is well equipped as far as machinery is concerned.

Production rates

Corporately higher

Higher estimated cost resulted due to more man-hours due to less adequate machines

Shop facilities

Best in the region

 

Previous production experience

Limited to the vessels of smaller capacities

Had constructed one vessel considerably larger than the vessel required by the Oceanics

Capabilities

Capable of handling the vessels of required size and beyond

 

On hand order for vessels of larger capacities

Nil

 

Work interruptions

Several strikes in the past few years

No work interruptions in past years

Employees and floor area

2,000 people with 470,000 square feet of floor area.

 

General appearance

Excellent lighting and ventilation arrangements, clean aisles. Neat and  well ordered arrangement of the overall building

Heating, lighting and cleanliness conditions were not as adequate as Atomic products

Laboratories and inspection facilities

Up to date laboratories and good inspection facilities. Metallurgical and chemical laboratories were well-staffed  and could provide Oceanics with adequate test specimens required by the specifications

Metallurgical and chemical laboratories were very large, but most of their equipment was old.

The response of manager of production about under progress jobs

The response was vague due to either lack of on floor activities or due to lack of knowledge about the end use of products

The equipment available and its intended use was explained to the visitors from Oceanics

Inspection and quality control

Both departments were well-staffed and had up to date equipment

 

Control of incoming material

No evidence of material control

Better control of materials. Each piece of material was marked for the project of its intended use

Contract cost

Negotiable

 

Understanding of requirement

 

The firm had the complete understanding of the requirements from the Oceanics

Control between the management and the shop

No infrastructure exists for day to day control of the progress

Effective control and coordination among people from supply, expediting, quality control and scheduling. Project engineer is kept informed on a day to day basis


Based on the value of the written proposal, which company appeared to submit the better offer?
Based on the value of the written proposal, Atomic Products Company N.Y. appeared to submit the better offer (CXO media Inc., 2012).
Based on the proposal plus information obtained from the case history, which company is likely to be better supplier?
Based on the proposal plus information obtained from the case history, Nuclear Vessels, Inc., Houston, Texas is likely to be better supplier.
What do you recommend?
Based on the overall scenario of both companies it is recommended that the contract should be awarded to Nuclear Vessels, Inc., Houston, Texas. The company has the experience in the fabrication of the large size vessels. The setup of machinery is sufficient to handle the requirement of Oceanics. There is no history of shutdowns and strikes in the company due to non existence of employee union. The company is very likely to follow the schedule of delivery, due to strict control over the on-floor activities and day to day monitoring system available (Robert Handfield, 2011).

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