Presented by Fournes Quentin, De Simone Vincenzo and Medina Samuel

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

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.

3) Different considered solutions :

Update the existing machine : 160 000$ cost

At least 6-8 weeks production shutdown Do not increase realibility Do not improve final product
Use an under-utilized manually controled machine of BCB

plant in Victoria.

A larger flexo folder gluer machine 50 x 110 numerically

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

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.

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

need :
automatic instruction sensing and feedback

=> reduce the setup time.

Need for may 1999.

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 of

business which BCB plant is aiming in the near future.

7) Suppliers Description
Kalder :
Very few informations Do not provide in CNC machine

7) Suppliers Description
Rhone : Strengths :

Low costs

Weaknesses :

Has lost its reputation in quality Do not have process monitoring functions

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

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

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 die cutter in BCB Vancouver plant Wood, plant industrial engineer : Favorises the Bale machine because of Bales track record in numerically controlled functions

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

better than the Andrewss one. Instead Andrews provides 8 features more than Bale. Scotsman vacuum feeder : more realiable and safer. Moreover it has a wash-up system works very well Supplier reputation: Andrews has not a good reputation in CNC machines production field because its first product didnt work well. Bale is one of the most reputed company in the tool machine industry and it has great experience on numerically control functions

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

presentation of its machine. This has an impact on the product image. The features are the strong point of the Andrewss product and make the CNC machine look more reliable.

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

7 ) Decision strategy (cont)

Service Reliability: Service centre in strategic place for Andrews is considered better than the track record service provided by Bale. Bales CNC service centre is in Minnesota USA, instead, Andrews have a firm in Vancouver. Supply Flexibility: Andrew scores more on this

metric because in addition to free installation it is also providing free training for the employees of BCB

8) Decision strategy
Price Features Andrew Strength Weakness 510 000$ 8 features more Panel not than Bale, good recommended wash-up system and reliable feeder first CNC machine produced was known to be problematic Good prospects for performance in the future Service centre near Vancouver Free installation with employees training 4 3 Strength 490 000$ Good Active Matrix Panel Bale Weakness

Reputation

more experienced company

Product reliability

Service Reliability Supply Flexibility

performance is not as good as seen during the visit Very far service center Just free installation 3 3

TOTAL

RESULT : In order to make our final decision, we based on the table that shows strengths and weaknesses of the two major competitors. As you can see, with respect to our strategy, Andrews has more strength than Bale leading us to choose him as a supplier.

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 price we would paid for the future. So it is more efficient to pay more to invest in a product and to not have additional costs. Moreover, we can explain why the difference of price is not too much relevant because Bale doesnt offer employee training, that could be a high cost.

 Do you have any questions?

 If Bales machine work well all the time, it should be

precised in the text.

 We can say that we have stop our relationship with

Bales Company because we are not satisfied by its product and we want to establish a new relationship with a recent and dynamic company representing progress