Teloxy Engineering (A)Teloxy Engineering has received a onetime contract to design and build 10 000 units of a new product. During the proposalprocess, management felt that the new product could be designed and manufactured at a low cost. Some members feltthat it would be more economical to purchase the product for R200 each in the marketplace, with an extra R20 per unithandling of the 10 000 units.The Management team set up a meeting with the manufacturing team to see if they can manufacture the component at acheaper price than buying it from the outside. The manufacturing team informs them that it can produce a maximum of10,000 units, just enough to fulfil the contract. The setup cost will be R100 000 and the raw material cost is R120 percomponent. Since Teloxy has never manufactured this product before, manufacturing expects the following defects:% defective10203040Probability of occurrence (%)1020302515All defective units must be removed and repaired at a cost of R60 per unit.Adapted from: Kezner, H. R. (2017). Project Management Case Studies. New Jersey: John Wiley & Sons, Inc.Question 11.1. If there is a 20% probability of defective product occurrence during production, determine if it is economically better tomake or buy the unit? *Show all your calculations.1.2. Teloxy Engineering wants to determine if it should invest in setting up a manufacturing plant worth R12 000 000 orinvest in project Theta worth R12 000 000 by applying the payback analysis. The table below shows the initialinvestment cost of the two projects and their expected revenues. Calculate the payback period of the investments.Determine the outcome If Teloxy management requires a 5 year or less recovery period for the initial investment. PROJECT (Manufacturing Plant)PROJECT (Theta)YearOutlaysRevenuesOutlaysRevenues12 000 00012 000 00011 200 0002 000 00023 400 0001 270 00035 400 0006 000 00047 000 0005 550 00059 050 0008 000 000

Given data, % defective 0 10 20 30 40 Probability 10 20 30 25 15

Teloxy Engineering (A) Teloxy Engineering has received a onetime contract to design and build 10 000 units of a new product. During the proposal process, management felt that the new product could be designed and manufactured at a low cost. Some members felt that it would be more economical to purchase the product for R200 each in the marketplace, with an extra R20 per unit handling of the 10 000 units. The Management team set up a meeting with the manufacturing team to see if they can manufacture the component at a cheaper price than buying it from the outside. The manufacturing team informs them that it can produce a maximum of 10,000 units, just enough to fulfil the contract. The setup cost will be R100 000 and the raw material cost is R120 per component. Since Teloxy has never manufactured this product before, manufacturing expects the following defects:

Teloxy Engineering (A) Teloxy Engineering has received a onetime contract to design and build 10 000 units of a new product. During the proposal process, management felt that the new product could be designed and manufactured at a low cost. Some members felt that it would be more economical to purchase the product for R200 each in the marketplace, with an extra R20 per unit handling of the 10 000 units. The Management team set up a meeting with the manufacturing team to see if they can manufacture the component at a cheaper price than buying it from the outside. The manufacturing team informs them that it can produce a maximum of 10,000 units, just enough to fulfil the contract. The setup cost will be R100 000 and the raw material cost is R120 per component. Since Teloxy has never manufactured this product before, manufacturing expects the following defects:

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
board ection(s) est 2-Project scription) ack HS d safe HS risk = advice HS advice plio B aration WHS616 Product 1: Question 9. Specialists Sometimes specialist and other advisors' input may be needed as part of applying safe design principles to control WHS risks. Explain why this might be needed. For each of the two products, list who these specialists/other advisers could be. You have 6 unsubmitted section(s). This module Previous Move to Next Section Submit Secti Q Search 03
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case...Product Description Publication Date: June 05, 2014 Source: Stanford Graduate School of Business The case follows Jim and Debbie Aung-Din Taylor, an American couple with backgrounds in international development, as they found and build Proximity Designs, a social enterprise in Myanmar. Initially, the Taylors are focused on redesigning the treadle pump for Myanmarese farmers, using design thinking and processes to formulate a pump that is affordable to their extremely impoverished target customers. However, the Taylors soon realize that they also need to build a distribution network in order to sell their products. Along the way, a natural disaster (Cyclone Nargis) and political reforms in the country create both new challenges and new opportunities for Proximity. Product #: IDE06-PDF-ENG Pages: 26 Related Topics: Product development, Entrepreneurship Question As Jim and Debbie Taylor, what would you do about Proximity’s irrigation business? Consider its relevance to…
case...Product Description Publication Date: June 05, 2014 Source: Stanford Graduate School of Business The case follows Jim and Debbie Aung-Din Taylor, an American couple with backgrounds in international development, as they found and build Proximity Designs, a social enterprise in Myanmar. Initially, the Taylors are focused on redesigning the treadle pump for Myanmarese farmers, using design thinking and processes to formulate a pump that is affordable to their extremely impoverished target customers. However, the Taylors soon realize that they also need to build a distribution network in order to sell their products. Along the way, a natural disaster (Cyclone Nargis) and political reforms in the country create both new challenges and new opportunities for Proximity. Product #: IDE06-PDF-ENG Pages: 26 Related Topics: Product development, Entrepreneurship Question As Jim and Debbie Taylor, what would you do about Proximity’s lending business? Consider its relevance to…
Can you prepare a diagram of the trade-off rule? Must have the following columns: Factors, Trade-off rule and comments. For a better understanding: The trade-off rules I would like must relate to the development of convertible heel shoes. P.S No paragraphs please, just the table
Equipment ExpensesAnalyze the cost differences for a project that needs the use of a trencher Compare the cost differences between renting and buyingâ€”amortizing the purchase price over a five-year period Which would be the best approach, renting or purchasing? Explain how equipment expenses differ from other installed construction items, such as lumber and steel What unique accounting aspects need to be considered when estimating equipment used in a construction estimate? Submission Requirements:Submit a Word document with the following specifications: Font: Arial, size 12, double-spacing Citation style: APA Length: 2â€“3 pages
You are the proposal manager for an opportunity to design and build a new assembly line for the production of artificial heart valves. A required equipment item is a 3-D X-ray inspection system. You have discussed purchase of the equipment with management, and their preference is to purchase the item as the assembly line is nearing completion (potentially up to 6 months away). You can use a rough estimate for the bid but would like to know the cost range you could anticipate in order to quantify project risk. The current price of the system is $75,500.00, and the current cost for installation is 15% of the purchase price. Price could vary by as much as +/- 10%, and installation may vary by +/- 5%, although the prices have not varied by that much in the past 6 months.…
A company is anxious to sign a 3-year software operation contract for an ERP (Enterprise Resource Planning) software package. The company has already acquired experience in the provision of software operation services for the ERP package. The multinational organization suggests paying a lump sum for user support, corrective and adaptive maintenance tasks, and a separate payment for functional improvements, based on the characteristics of each request. The pressure from the Sales Department to immediately sign the contract left little time to prepare a proposal, and practically no time for a contract review. What risks are entailed by neglecting to hold a contract review?
Ritz Products’s materials manager, Tej Dhakar,must determine whether to make or buy a new semiconduc-tor for the wrist TV that the firm is about to produce. Onemillion units are expected to be produced over the life cycle.If the product is made, start-up and production costs of themake decision total $1 million, with a probability of .4 thatthe product will be satisfactory and a .6 probability that itwill not. If the product is not satisfactory, the firm will haveto reevaluate the decision. If the decision is reevaluated, thechoice will be whether to spend another $1 million to redesignthe semiconductor or to purchase. Likelihood of success thesecond time that the make decision is made is .9. If the secondmake decision also fails, the firm must purchase. Regardlessof when the purchase takes place, Dhakar’s best judgment ofcost is that Ritz will pay $.50 for each purchased semiconduc-tor plus $1 million in vendor development cost.a) Assuming that Ritz must have the semiconductor…