Reddy Corporation is an industrial
enterprise making ball bearings for the electric motor market and has 100 workers on its rolls
working on the shop floor. For every twenty workers there is a supervisor and
the supervisors report to a plant manager and the company has a factory
manager.
Mr.
Sardar the marketing manager of Insta
brand of starters visit the company and offer their electronic starters to the
company as a replacement to conventional starters used in fluorescent lamps
used in the shop floor. The shop floor has some 250 fluorescent lamps. The
starters are tested by the plant manager and gives an okay report to the
factory manager Mr.Mirwani Giri.
The
company decides to replace all the starters with the new starter and on a
Sunday overtime electricians replaced all the old starters with new ones.
Because
of the dusty environment and heat conditions….at least ten of the starters were getting burnt every week creating serious problems in the
shop floor and some parts of the shop floor were not getting light.
After
three months the problem was becoming even more serious and the workers made a
written complaint to the CEO Mrs. Sayeda
Grace Shilpa in Chennai who immediately ordered the replacement of all the
starters to the old format and the plant manager was suspended for one week.
1.
Try to identify User Buyer, Technical
buyer and Economic buyer in this case.
2.
Should the company have replaced the
old starters..if not why?
3.
How do you think this confusion could
have been avoided?
4.
What steps the company should have taken
in the purchasing process?
5.
What fresh purchasing policy would you
outline so that such problems don’t arise in the future.
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