Peach Computer Company Case Study

Tags: due diligence duty analysis budget delegation quote risk

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1. Should Don get any additional information? Explain.

As the supply manager, Don has the final say in making the recommendation; however, he also has a duty to do his due diligence, and part of the duty involves getting the opinions of the department managers, understanding the methods used, and collaborating with his other team members and colleagues to best identify needs and expectations. Burt (2010) notes that when departments demonstrate a collaborative spirit, the end result is a balanced outcome that benefits all: moreover, a plan that is balanced helps to ensure that quality is achieved, costs are kept low, and supplier goals and consumer goals alike are met.

2. Discuss the inherent advantages and disadvantages of using performance

specifications.

The advantage of using performance specifications are that this method allows the user to effectively express the firm’s needs to the manufacturer. This method conveys two essential concepts to the manufacturer: first, it identifies what the firm expects in terms of the end result; second, it identifies how the firm will tell if the end result is what is wanted. Other advantages include ensuring that costs are kept low through competitive sourcing. By opening up the process to bidders, a better quote can be obtained.

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At the same time, there is the risk of low-ball bidders not having the quality of staff and product needed to complete the job on time—and that is one of the main disadvantages: branching out into unfamiliar territory.

3. Discuss the inherent advantages and disadvantages of the plans and specifications

method of describing quality.

The advantages of the plans and specifications method of describing quality are that it sets the standards up first and then proceeds to the development. When the specifics are described up front, the firm is protected from misdirection and lack of guidelines. The disadvantage is that the cost can be higher than if the process were opened up to other bidders. In this sense, it is a matter of cost vs. guaranteed quality up front.

4. Assuming that Don’s investigation and analysis indicates that both methods are

practical for use by Peach, discuss which approach Don should recommend.

The performance specifications method provides Don with more room to bring the project in under budget which will be a boost for the firm; however, it is also more likely to place….....

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References

Burt, D. N. (2010). Supply Management, 8th Edition.

Scott, S. (2014). Strategies for implementing performance specifications. National Academy of Sciences.

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