Shell Case Fabricators

BACKGROUND

Sh$\mathrm{.}4$: Case Fabricators $($SCF$)$ designs and builds shell casings that enclose electronic products such as calcubtors, cell phones, Paee $401$ aning Todems. Typically the cases are plastic or plastic compounds. SCF has six different production lines that cover different tyds product. For example, the largest high$-$volume production the frot moder can produce three different colors and $($vo modets at full capacity on an eighthour shir. The other five lines run smaller quantities and tend to meet the needs of other specialty products manufactured by different, smaller firms.

Ninety ftve percent of SCFs product casings line is designed by the original handware manufacturer. Getting a casing to the production stage requires a great deal of collaboration and interaction between the original hardware and case design manufacturer $($e$.$g$.$ ACL$)$ and SCF$\text{'}$s shell design engincers and Production Department. The latest new product of ACL is a modem designed to be used for monitorine water activity in bays, such as ship traffle, pollution, and floating debris. Because of the product's high functionality and low cost. potential demand for the new product is out of sight. It seems every country with small bays used for shipping wants enough underwater modems to cover its respective bays.

THE UNDERWATER MODEM PROJECT

Ar SCF each new product is assigned a project manager to coordinate and manage the shell desien, bodgets, and manufacturing start$-$up$.$ Songsee is SCF$\text{'}$s star project manager and is the project manazer of the shell for the new short$-$range, underwater acoustical modem. The shell casing for the underwater modem required special design and materials, custom equipment, and a seal to withstand pressure to $30$ meters. Air Connection Links, the product owner, needs $60\mathrm{.}000$ modems in $91$ days $($next January I$5)$ for the Estuary Control Institute meeting in Hong Kang.

CLIENT CHANGE REOUEST

Songsee has felt the project was moving along smoothly, with the evoeption of being two weeks behind schedule. She feels she Piet $462$ can "lean on$"$ the Design Department to put the project on top priority and make up the two weeks. Yesterday ACL's project manager, Sabin, came in with a "simple change"; change the outer shell shape from rectangular to dome shape; it will improve performance $2$ percent. Songece couldn't believe Sabin. He knows better. He knows the engineering implications, and it is NOT simple! Yet Sabin tells Songese, $"$It shouldn't cost much." Songsee imagined a sharp retort, but she counted to five and aborted. At this late stage of the game. changes and schedule compression cost big moncy' Songsee said she would get together with her team and start on a ney time and cost estimate that day. She told Sabin he would have to give her a written change request of the new reguirements by the next day. Sabin appeared disappointed: "Why don't we just add $100,000$ to the price and get on with it$?$ We have been doing business with SCF for six years. With expected demand out of sight, SCF will break even quickly and have a great profit on the production side." Songsee sighed. "Let's proceed with the change order process. I will take your request to the ehange order governance committee."

Songee's meeting with her team about the change went about as expected. Every department moaned about changing at this late date The guesstimate cost and time ectimates were over triple Sabin's idea of $f100,000.$ For example, designing a new seal for a domest$)$le modem will require a new custom water sealing approach. possibly an untested different sealant. and new molds. Has ACL. frozen the design of the new style modem? Songsee asked the team to come in with a more detailed estimate by tomorrow afternoon, before her meeting with the change order governance committee.

THE NEXT DAY $($FRIDAY$)$

The tearn estimates came close to yesterday'i guesstimate $((2391,000)-$not good nows. Songee knew the answer of the change commitlee would be to hold for the full amount. She was righe. The change commince beliened the conts are there and need to be ponered to meet the launch date. The cormaitice was also concerned that prionities and resource schoololing would have to change for SCFi Desien and Production Departments. In three bours she would meet with keniot management to decide to accept the ctient's request at their price or come up with an alternate plan. Sonesee realized she should hove weveral options for senior raanagement to comider, along with a commendation.

Should SCF acceps or reject ACL's request? Which option would you seleen? What rists are irvolked?

$2$ How should SCF erpotiate with ACL' How can SCF and ACL develop a positive, loegrange relationship? Give wome specifles