Fabtek (A)

Fabtek is a company specialized in fabricating and selling te and equipments made of titanium. Recently, Fabtek is failing to maintain mart share and losing capital because of long delivery schedule and late deliveries due to myopicfall of capacity and unreliable internal forecast.

Two executives of Fabtek recognize that marketing segment and operations division should cooperate with each other to make better the efficiency and profitability of fabricating business. They agree to become much discriminating in taking puts. At this point, they have four potential fabricating parliamentary laws and must(prenominal) decide which order to take.

In this case, I see cardinal issues. First, the inter-communication/cross-functional cooperation between operations and marketing should be improved. There should be more concurrently updated capacity information available both(prenominal) operations and marketing. Since this company is relying much on the skilled labor, the regard of capacity is crucial for winning and doing jobs timely. Second, clear criterion must be set up for taking orders. Itd be easier to infer which order to take or not with these criterion. In this case, in that respect are two kinds of criterion and these two share round aspects and contradict some aspects. Among four orders offered, it is recommend to take peerless from Pierce-pike and one from Worldwide paper.



Even though the capacity of welders is short in late 1991, it can be resolved by scheduling and these two orders will give the chance of diversifying the market to Fabtek. The order from Refco is a big deal but its more labor-centric and hard to meet the delivery date with present capacity. The order from Kathco is one shot deal and can be penalize within capacity but strategically might be discarded to hinder the expansion of the competitor.

* Issues should be considered to select orders

- What is the outgo order?

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