Parker Earth Moving Consulting 1

Parker Earth Moving Consulting 1

Parker Earth Moving Company (PEMC) - Consulting Session 1
10 April 2011
ISCOM305
Kairo Hannon
Customer Requirements
      In reviewing the market for the new navigational device for Parker Earth Moving Company (PEMC), A-Team Consultants, LLC has been asked to assess the requirements for the first quarter of production.   Upon completing our assessment, we understand the requirements to be as follows:
    1) The company must increase monthly sales and production to roughly 30,000 units per month (90,000 per quarter)
    2) Maintain the good reputation of PEMC
    3) Minimize losses for the company

      A-Team Consultants understanding of these requirements also includes recommendations to PEMC that were not requested as part of the contract, but are part of our service and satisfaction guarantee.   We recommend that in addition to minimizing losses, we work with PEMC to create a plan that moves from minimizing losses to creating and increasing profits.   This will require additional research into contracting manufacturing at a better price to PEMC, or increasing the PEMC infrastructure to support increase production.

How We Determined the Requirements
There are contacts with two subcontractors who can help PEMC in fulfilling the expected requirements of the extra 10,000 items. Outsourced workers as an alternative have its disadvantages and advantages. The benefit of using subcontractor A or B will offer versatility for PEMC during a period when requirements are high. The drawbacks are a reduction in earnings and either subcontractor may turn into a possible future rival since each would have inside knowledge of how PEMC works.

Subcontractor A Option
Subcontractor A and B are both capable of meeting PEMC’s manufacturing and quality standard requirements. The choice for PEMC must be Subcontractor A due to the cost and the lead time linked with producing the item. PEMC must decrease any extra cost linked with this project hence the final cost...