BCB case study.pptx

7/27/2019 BCB case study.pptx

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Presented by Fournes Quentin, De Simone Vincenzoand Medina Samuel


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1) Introduction : British Columbia Box case study

BCB : International company that made packages

Vancouver Plant Manager : Paul Flynn

Case of study :

Purchase decision of a new numerical machine


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2) Problem to be solve main machines used in BCB plant is 18 year old

Constant deterioration and repairs

Threat of plant breakdown => affect beer business.


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3) Different considered solutions : Update the existing machine : 160 000$ cost

At least 6-8 weeks production shutdownDo not increase realibility

Do not improve final product

Use an under-utilized manually controled machine of BCBplant in Victoria.

A larger flexo folder gluer machine 50 x 110 numericallycontroled

=> major factor : plant expansion=> $ 1,000,000 Additional sales.


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4) Chronological review Mid 1997, need of a new machine.

September 25th

1997, official request to the CEO. December 1997, Mandatory change. Imminent

breakdown of old glue machine (18 years old)

April 1998, 586 800$ capital request, ask the 4th

manufacturers. December 1998 : final decision.


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5) Needs Desciption Computer Numerical Control (CNC) based machine

need :

automatic instruction

sensing and feedback=> reduce the setup time.

Need for may 1999.


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6) Analysis Results 50 x 110 CNC flexo folder gluer analysis showed :

- Setup time, from 36mins to 18mins;

- Eliminate existing machine;- Glue rate, ink rate, and jam detection features=> less waste, less supervision, higher quality products

Large CNC machine justify the volume and type ofbusiness which BCB plant is aiming in the near future.


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7) Suppliers Description Kalder :

Very few informations Do not provide in CNC machine


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7) Suppliers Description Rhone :

Strengths :

Low costs

Weaknesses :

Has lost its reputation in quality

Do not have process monitoring functions


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7) Suppliers Description Bale :

Strengths :

One of the reputed company in the tool machine industry;

3 operating machines Specification built around their machines Great experience on numerically control functions Active matrix control panel screen Free installation Machine can diagnose its own breakdown source

Weaknesses :

Headquarter for the numerical control function in Minesota Wash up system not 100% satisfactory Vaccum feeder less capability than Andrews One machine doesnt work well at the visiting day


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7) Suppliers Description Andrews :

Strengths :

Excellent manually controlled equipement

Good reputation in computer controlled design Scotsman vacuum feeder : more realiable and safer Wash up system works well Better features than Bales one and 8 more Free installation and training of the personnal During the visit, the machine was operating well Functions supplier in Vancouver

Weaknesses :

Dual-scan screen Higher initial price New in the CNC maker


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7) Suppliers Description Bale and Andrew are kept.

The 2 others were eliminated.

Among the 2 remaining : Advise Archie, factory super intendent : if you get the

Andrews machine, Ill get it running for you

Jack, maintenance supervisor did not like old Bale diecutter in BCB Vancouver plant

Wood, plant industrial engineer : Favorises the Balemachine because of Bales track record in numericallycontrolled functions


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7 ) Decision strategy Product feature: Bale has an Active matrix control panel screen

better than theAndrewss one. Instead Andrews provides 8 features

more than Bale. Scotsman vacuum feeder : more realiable andsafer. Moreover it has a wash-up system works very well

Supplier reputation: Andrews has not a good reputation in CNCmachines production field because its first product didnt workwell. Bale is one of the most reputed company in the tool machine

industry and it has great experience on numerically controlfunctions


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7 ) Decision strategy(cont) Product reliability: Bale was unlucky during the

presentation of its machine. This has an impact on theproduct image. The features are the strong point of the

Andrewss product and make the CNC machine lookmore reliable.

Price:Andrewss price 510 000$ VS Bales 490 000$


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7 ) Decision strategy (cont) Service Reliability:

Service centre in strategic place for Andrews isconsidered better than the track record service providedby Bale.

Bales CNC service centre is in Minnesota USA, instead,Andrews have a firm in Vancouver.

Supply Flexibility: Andrew scores more on thismetric because in addition to free installation it is alsoproviding free training for the employees of BCB


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8) Decision strategyAndrew BaleStrength Weakness Strength Weakness

Price 510 000$ 490 000$

Features 8 features more

than Bale, good

wash-up system

and reliable feeder

Panel not

recommended

Good Active Matrix

Panel

Reputation first CNC machine

produced was

known to beproblematic

more experienced

company

Product reliability Good prospects for

performance in the

future

performance is not

as good as seen

during the visit

Service Reliability Service centre near

Vancouver

Very far service

center

Supply Flexibility Free installation

with employees

training

Just free

installation

TOTAL 4 3 3 3

RESULT : In order to make our final decision, we based on the table that showsstrengths and weaknesses of the two major competitors. As you can see, withrespect to our strategy, Andrews has more strength than Bale leading us to

choose him as a supplier.


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Conclusion Our strategy is based on the fact that, the most

important thing for our company is not the price paid,it is consider like an investissement; but on the pricewe would paid for the future. So it is more efficient topay more to invest in a product and to not haveadditional costs.

Moreover, we can explain why the difference of price isnot too much relevant because Bale doesnt offeremployee training, that could be a high cost.


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Do you have any questions?


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IfBales machine work well all the time, it should beprecised in the text.


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We can say that we have stop our relationship withBales Company because we are not satisfied by itsproduct and we want to establish a new relationshipwith a recent and dynamic company representingprogress

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BCB case study.pptx