Fauquier Gas Company Case Study Essay Example

pipe order placed. The construction is set to commence in 6 weeks. III. Potential Resolutions

The only option for Fauquier Gas Company in installing the 3.5 miles of gas line is to reassess the timeline. Currently, Mr. Murphy has not yet received the purchase request and with the project set to start in six weeks, there is not enough time for the mills to produce the gas lines. Fauquier Gas can adjust the timeline to allow sufficient time for the mills to meet the request. However, this will result in a delay in the project and potential financial losses due to halted operations.

B. Another option for Fauquier Gas Company is to return to previous specifications for gas lines. This would involve changing the dimensions of the lines, which may require adjustments to the production line and potentially cause delays. With only 6 weeks until the expected start date, this could negatively impact production. One of the main challenges would be handling the logistics of the longer lines. Extending the gas lines from 12' to 22' would require coordination for transportation and transferring pipes to the wrapping location. If Fauquier Gas reverts back to normal specifications of 3/8" thickness and "random double normal" length (40'(+/-5')), it would allow the mills to produce the gas pipes within the established timeline set by the project manager. However, this would eliminate the cost savings planned for by the design engineer in welding expenses and result in stricter specifications governed by regulations. Nonetheless, since Fauquier Gas has placed orders in the past, the system is already in place to produce these specifications.

C. An alternative solution

I anticipate is opting for different gas pipe suppliers. If Mr. Murphy fails to establish a contractual agreement with a specific mill, he can explore other options for suppliers. By searching for alternative mills, Mr. Murphy might discover gas pipe producers who already have the required dimensions or can quickly fulfill a small order to meet the timeline. Nevertheless, this approach may harm the relationship with the current mills or result in a lower quality than expected.

IV. Choice and Rationale: Considering the situation and timeline, it is advisable for Mr. Murphy to communicate with the design engineer and utilize the same dimensions that were previously used with a reliable mill. There appears to be a breakdown in communication within the supply chain, and it is crucial to implement damage control strategies to ensure that the company's deadlines are met.

V.Implementation Mr. Murphy should address the timeline issue and the negative consequence of design changes with the vice-president. He should also assess if the current mill used is capable of meeting the June start date. If they can produce enough to begin the project and ensure the remaining amount is obtained before or shortly after starting, Mr. Murphy should expedite the order placement to provide the mills adequate lead time. Presently, it takes an average of 35 minutes to manufacture a 45' section of gas pipe (Net4Gas).

Production can commence immediately if the pipe dimensions and molds are prepared. The entire project would require 276 hours or 34 days, assuming a 40-hour work week. This corresponds to a total of 473 pipes needed to cover a distance of 3.5 miles, with each

pipe taking approximately 35 minutes to complete. To ensure that the project stays on track for its scheduled start in six weeks, Mr. Murphy simply needs to promptly place the order.

Appendix 1. The case study presents supply management challenges due to a number of important factors. Firstly, there is an absence of early engagement in the procurement process. Mr. Murphy, responsible for procuring materials such as pipes for the company, was completely unaware of the request as he overheard it in the cafeteria. Moreover, there is a lack of communication between the three mentioned sections (purchasing, engineers, and construction), despite all operating under the vice-president for operations.

Due to various factors mentioned above, the mills have limited time to fulfill orders for Fauquier Gas. Moreover, Mr. Murphy has been aware of the pipe requirement since January, but as of April, he still hasn't received the purchase request for a project that has a 6-week lead time and is scheduled to start in April. On another note, Fauquier Gas Company is embarking on a significant project to install 3.5 miles of gas lines in a residential/commercial area. To meet the project's timeline with a June start date, urgent procurement of pipes is necessary due to poor communication among departments. One possible solution to enhance the system would be establishing a cross-functional team consisting of engineers, construction leads, and procurement leads at minimum.

Establishing a cross functional team would improve communication between departments earlier in the project. If this was done before the 3.5 mile project, Mr. Murphy could have been informed first and passed on the lead time requirements to other departments.

Engineers could have provided diagrams earlier if they knew about these lead time requirements, giving Mr. Murphy enough time to start the procurement process and avoid project delays. Another option is to involve the mills earlier in the process through Early Supplier Involvement, along with supply management. This approach would enhance quality and reliability, streamline development of new specifications, and reduce material cost (Burt 129).

The mills can provide valuable information to assist in the process, including the lead times required for various specifications, cost savings from extending pipe lengths, and potential additional costs associated with production or transportation. Implementing early supplier involvement would greatly enhance the efficiency and effectiveness of design engineers. Based on these considerations, my recommendation is to stick with historical specifications due to time constraints and the need to begin the project in June.

To improve the supply system in Fauquier Gas, it is necessary to initiate a complete revamping process starting with the vice-president of operations. One way to achieve this is by establishing cross-functional teams at the beginning of new projects, which would provide better oversight and flexibility. It is crucial to enhance communication among all departments to facilitate a more efficient progress. By considering the effects of design changes, the required lead times, possible alternatives, and involving suppliers early on, Fauquier Gas can prevent this problem from happening again.