Shell Case Fabricators

BACKGROUND

Shell Case Fabricators $($SCF$)$ designs and builds shell casings that enclose electronic products such as calculators, cell phones, Page $461$ and modems. Typically the cases ane plastic or plastic compounds. SCF has six different production lines that cover different, types of product. For example, the largest high$-$wolume production line for modems ean produce three different colors and two models $($vertical and flat$).$ Air Connection Links $($ACL$)$ is the biszest customer that buys product from this line. This high$-$output line now runs at fill capacity on an eighthour shin. The other five lines run smaller quantities and tend to meet the needs of other specialty products manufactured by different, smaller firms:

Ninety five percent of SCFs product easings 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 engineers and Production Department. The latest new product of ACL is a modem designed to be used for monitoring water activity in bys$,$ such as ship traffic, 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

AI SCF each new product is assigned a project manager to coordinate and manage the shell design, budgets, and manufecturing start$-$up$.$ Songsee is SCF$\text{'}$s star project manager and is the project manager 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 presure to $50$ meters. Air Connection Links, the product owner, needs $60,000$ modems in $91$ days $($next January $15)$ for the Estuary Control Institute meeting in Hong Kong$-$

CLIENT CHANGE REQUEST

Songsee has felt the project was moving along smoothly, with the exception of being two weeks behind schedule. She feels she $\frac{?}{\text{b}\text{a}\text{r}}($ Page $462)$ can "lean on$"-$ the Design Department to put the project on top priority and make up the two weeks. Yesterday ACLis project manager, Sabin, came in with a "simple change"; change the outer shell shape from rectangular to dome shapc; it will improve performance $2$ percent. Songsee couldn't believe Sabin. He knows better. He knows the engineering implications, and it is NOT simple! Yet Sabin tells Songsee, $"$It shouldn't cost much." Songse imagined a sharp retort, but she counted to five and ahorted. At this late stuge of the game, changes and schedule compression cost bis money! Songsee said she would get together with her team and start on a new time and cost extimate that day; She told Sabin he would have to give her a written change request of the new requirements by the next day. Sabin appeared disappointed: "Why don't we just add $f100,000$ 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 change order governance committee."

Songsee's meeling with her leam about the change went about as expected. Every department mouned about changing at this lute date. The guesstimate cost and time estimates were over triple Sabin's idea of f $100,000.$ For example, designing a new seal for a dome$-$styte modem will require a new custom water sealine approach. possibly an untested different sealant, and nev molds. Has NCL 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 mecting with the change order governance commitice.

THE NEXT DAY $($FRIDAY$)$

Sabin called from ACL ut midmorning the next day $-$ Our senior manegement is upset that we have to he so formal for such a small change. They just wast to get on with the project and meet the time$-$tomarket launch date, $100,000$ seems like a fair price. They believe you need to talk to your management. They want a response by Monday"