The Bathtub Perioid

520 Words3 Pages
Case Report: The Bathtub Period a. Jerry should go to the general manager. It is an uncomfortable situation, however, Frank intends to cheat the company. If Jerry neglects to alert the chain of command, Jerry will be complicit in the fraud. It is wrong to lie, even when a bonus is tied to the lie. Plus, how much weight can Frank's words carry, that Jerry will get his key people back, if he is willing to lie about the reserve? At what point can Jerry or the company trust Frank? Jerry must speak with the general manager. b. Unfortunately, the key people should not be supported on the overhead, unless this sum of money is an affordable sum to the company. It is not reasonable for Scott Corporation to expect Jerry and his management team to stand in place while Scott works out its' cash flow problems. The right answer is to quickly get the key people allocated to other work within the company, and re-form the team with the best people available at and when Scott Corporation is able to re-allocate funds to the project. At this point there is no guarantee that Scott Corporation will return even March 1st. c. If this were a cost-plus program, the customer could be approached as the contract would be based on actual costs. I am not sure I would word it as "approaching the customer with MY problem" but rather approaching the customer with the situation that has been created as a result of the customer not being able to allocate funds as originally planned. d. If I was the customer of a this cost-plus program and the manufacturer had requested funds for the bath tub period I would need to turn them down, most likely. I would gladly supply funds if they were available, but if that were the case this situation would not have developed. Assuming Scott Corporation put a hold on the work due to cash flow it would seem unreasonable and unattainable to ask for more funds. It
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