1. The key facts
Time
Specifications
The length of the project is three and a half miles. This is the aggregate length of the pipes that are going to be used in the project. The new project will use pipes that are 57 feet in length, inner diameter of 24 inches and a wall thickness of three quarter inches. The pipes will be wrapped with either coal tar wrapper or pry-tech wrapper. Three and a half miles translates to 18480 feet. With each pipe being 57 feet long, the whole project will require 325 individual pipes. With the previous length of 40 feet, this is a reduction of 30% of the total number of pipes that would have been needed. This also translates to 30% fewer joints that need welding. The thickness of each pipe is 0.75 of an inch up from 0.375 of an inch. The increase in the thickness of the pipe is due to less stringent specifications governing of the whole line if the lines are thicker. This is meant to save the company maintenance resources in the future.
2. The problem
As at April 14, the supply manager has not yet received a purchase request with the pipe specifications. This is despite the fact that the project is due to start in June to be completed by September. This means that the supply manager only has six weeks to get the purchase request, send out specifications to different mills in order to get quotations, place an order on the pipes, get the pipes fabricated and take delivery of the pipes for the project. During this time, the selected mill has to have enough lead-time to be able to accommodate the production. With such a short time remaining and with the pipe specification not complete, the supply chain manager has to take matters into his own hands in order to prepare adequately for the supply of the pipes once the specification is complete. With majority of the pipe specification done, Mr. Murphy is only left with the wrapping of the pipes. There are two mills, which offer the two types of wrapping, one in Philadelphia and the other in Atlanta. The problem is that the time needed for the purchase of the pipes is tight and the mills will have to have capacity to produce the new pipes specified. This has to be done and the pipes delivered starting June so that the project can be completed by September.
3. Solutions
- The third option that Mr. Murphy has is to divide the production of the pipes between two mills. He will get into an agreement with the two mills to produce the pipes without the wrapper. Negotiations will also be done with the two companies to provide the wrapping service on their pipes and those of the other pipe manufacturer should their wrapper be chosen. Although this will be done at an extra cost, delivery of the pipes will be faster if production is split between the two mills. Because all other specifications are already specified, production of the pipes can commence before the wrapper specification is done. When this is done, the wrapping of the pipes can begin. This third method is the best for time saving. However, the time needed for the needed negotiations for this arrangement might not be readily available.
4. Recommended solution
The recommended solution for the problem is the first solution where Mr. Murphy anticipates the wrapper specification and gets quotations for both types of wrappers. With the quotations in hand, the order can be placed immediately when the purchase request is presented. This is the most cost effective solution for the company because they can choose the mill with the lowest cost. This solution is also recommended because when the mills reply to the initial request, they will indicate their capacity to produce the pipes. Using this, Mr. Murphy can push the vice president in charge of operations to get the purchasing supply in order to meet the deadline of the whole project.
References:
Frame, J. D. (2012). The new project management: Tools for an age of rapid change, complexity, and other business realities. San Francisco, CA: Jossey-Bass.
Haugen, D. M., Musser, S., & Lovelace, K. (2009). Outsourcing. Detroit: Greenhaven Press.
Tinnirello, P. C. (2013). Project management. Boca Raton: Auerbach.
