Selection of Pressure Vessel Manufacturer

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Case Study 3: Selection of Pressure Vessel Manufacturer I. Major Facts: The engineering department hand-carried a purchase requisition for a pressure vessel to Jack Toole, supply manager, Oceanics, Inc. Immediately, Jack asked twenty pressure vessel manufactures for their quotes. Once received, Jack narrowed them down to two potential suppliers out of the eighteen. The two likely suppliers are Nuclear Vessels and Atomic Products Company. The advantages and disadvantages of the two probable companies seem to be about the same. An investigatory trip to each of the potential companies will be necessary to make a precise selection. The following facts, about the Atomic Products Company, have been collected: • Contract price would be a cost-plus-a-fixed fee contract. • Shop facilities meet the specifications to the fullest extent possible. • Atomic Products Co. has not made the vessels of the requested size before, but does have the required equipment to do the job. • Atomic Products Co. alleges their ability to fabricate the entire vessel within their facility without resorting to subcontracting. • Atomic Products Co., will ship the vessel f.o.b by rail in six months if no engineering changes are necessary. • The company guarantees their workmanship and materials to specifications provided. The following facts, about the Nuclear Vessels, Inc. have been collected: • Offers sufficient shop facilities to manufacture and offers frequent visits from Oceanics. • Has experience with the vessel size requested by Oceanics. • The majority of the work will be accomplished at Nuclear Vessel Inc.’s’ facility; However, forgings will be purchased from a competent supplier after he has satisfied the company’s metallurgist that his forgings will meet the specifications. • One employee from each of the key departments will head the project from start to

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