please answer discussion queations 1 and 2

Part Seven Creaties models, perhaps differentiated on load capacity and Engineer. In 1989. Nolan began working in supply man available options (e.g. hand or foot controls, was agement for the Horicon, WI lawn and garden equip- needed ment manufacturing facility. The opportunity to join a Product Delivery Deere knew that demonstrating its new Deere manufacturing facility in the role of supply skid-loader's versatile functionality and being able to management manager was a welcomed promotion and demonstrate and deliver the product to the actual challenge work site was an important sales incentive SUPPLIER INTEGRATION IN SKID-STEER Price: Last but not least, the demand for skid-steer LOADER DESIGN loaders was highly price sensitive. As a result, minimiz. Having worked in supply management for the seven ing cost of goods sold without sacrificing timely deliv. past years, Nolan was well aware of the general princ ory of a high quality Deere skid-loader was imperative ple of involving suppliers in product development and The situation before 1996 was therefore pretty clear manufacturing decisions and the frequently touted ben As long as engineering and production of Deere brand efits of lower costs structures, faster product develop skid steer loaders were in the hands of a third party- ment cycle and reduced operational inefficiencies. He one that, in fact, competed in the same market niche- believed, however, that not all suppliers needed to be or there would be little opportunity to gain significant should be involved, especially in the early stages of the benefits over competing products and product features new product development process. Furthermore, involv The same argument held for cost considerations, maki ing suppliers should not be lip-services the selected ing better delivery and service the only competitive suppliers should be well integrated into the various advantages. Furthermore expecting market demand for product development activities. skid steers would increase, New Holland had refused to CONCLUSION sell additional production capacity to Deere & Company Reflecting on this knowledge, Nolan realized that he As a result, Deere & Company decided that it needed to must answer two important questions in his proposal regeln direct control of the design and manufacturing of these being this potential lucrative product (al How to choose the suppliers that should be inte THE "GREENFIELD" KNOXVILLE DECISION grated early in developing the new Deere skid steer In April 1996, corporate headquarters approved a cap loader tal investment project of $35 million dedicated to regaining control of the design and manufacturing of the (b) And, equally important, what principles practices steer-skid loader. This capital investment decision also techniques should be adopted to structure the inter actions during the early product development phase approved the placement of the design, manufacturing ond marketing functions in a new facility to be built near with these selected suppliers so that the full-scale production of skid steer loader units would begin by Knoxville, TN. The mandate was clear engineer and manufacture a high-quality skid-steer loader that would the target date in July 1998? be 20% lower in costs than that of the best competitor's With less than a week before his meeting with James by August 1998, consistent with other identified order Field, Nolan sat down in front of his home computer and winning criteria begon drafting the proposal SCOTT NOLAN, CQE, PE, AND NEW SUPPLY MANAGEMENT MANAGER Discussion Questions Nolan joined Deere & Company as a manufacturing What criteria-time to four-should Scott Nolan use engineer, after graduating from lowa State University to screen suppliers to be integrated into the early with a mechanical engineering degree in 1979. Along phases of the Deere skid steer loader development the way, he has received an MBA in 1989) from the process? Why? University of town, as well as professional certification 2. What specific principles, practices, or techniques as a Certified Quality Engineer and as a Professional might be useful to effectively integrate suppliers