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Project Manager Decisions

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 AJY6
(@ajy6)
Posts: 82
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In this week's simulation, the project manager chose CamTech as the supplier of the pouches mainly because of the price point. Other than price, what are some different factors one should consider before placing a mass order for a product?

This topic was modified 2 years ago by AJY6
 
Posted : 26/04/2022 4:29 pm
(@hodafattel)
Posts: 78
Trusted Member
 

There are a lot of different factors other than price to consider before placing a mass order. One of the most important factors is quality. When choosing a new vendor, you want to make sure the quality of the product or service will meet your needs. Ask for referrals and talk to other companies that have used this vendor to see if they were satisfied with the quality of work. Also, ask to see samples of the vendor’s product. Buying a poor quality cheaper product can be more expensive in the long run if you lose clients or have to repurchase from someone else. Another factor is reliability. Since a vendor is an integral part of the business, you must be able to depend on them to do what they say they will do. You don’t want to let your customer down because your vendor let you down. Do they deliver products on time? Is there anything missing from the order? Do they make excuses when things go wrong? A vendor that gets it right every time is a valuable asset to your company. In the simulation, even though the first two samples were very good, the next 10 samples were not. The vendor is not reliable in this case. 

 
Posted : 26/04/2022 6:01 pm
 tgt6
(@tgt6)
Posts: 79
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Cost is a very important factor to consider when placing a mass order for a product but here are other factors that should be looked into as well. When dealing with international orders, choosing a suitable country in which you want to start the mass production is important. This leads to dealing with the logistics of the order and that can end up greatly influencing the price of your product. Another important factor to consider is the choice of a contract manufacturer. It is important to formulate the requirements for the manufacturer, whether it's the size of production, the experience needed, or the portfolio of the customers. One last factor to consider would be to make sure that all the design documentation for the housing and electronics are in order and a clear description of the material properties is made. Only once all these factors have been considered should the mass order start being made. 

 
Posted : 29/04/2022 4:43 pm
(@alextzalav)
Posts: 27
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Another important factor that a company should consider before making a mass order is the time that this order will need to be completed. Even if a product is cheaper, taking more time to build can lead to increased costs overall when compared to a more expensive one that could have been ready earlier. Also, going off schedule can have severe consequences on the whole product design and can even affect the reliability of the company. 

 
Posted : 29/04/2022 9:01 pm
(@pv223)
Posts: 76
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Similar to the testing, the major factors that should be considered before bulk ordering a product from a vendor can be summed up to "Good" for the quality, "Cheap" for the price, and "Fast" for the amount of time it will take for the product to be delivered. More often than not, it will also be a "pick two out of three" situation where you can either have a good product for cheap, but it will not come quickly or a cheap product quickly but it will not be good, etc. Every once in a while you may find a golden scenario where all three points are met, but that is besides the point. Aside from all of these, another important thing to consider on both ends, whether you are the vendor producing the good or the company using the services of the vendor, is the profit that will be gained from this deal. Not in terms of "Cheap" where you spend less money on the product to gain a bigger profit from sales, but really examining both the product itself and the deal with the vendor to make sure the investment being made into this product is worth the money it costs in comparison to the amount of money being gained from sales.

 
 
Posted : 30/04/2022 3:19 pm
(@leshan)
Posts: 33
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i think most important thing is the product quality. Before place mass order its always a good idea to ask for samples to exam. also it is a good idea to inspect the factory. To know if the size of the factory and how well trained their worker is. Those could affect the future orders. if the factory is oversea, the freight is also something that need to look into before place orders. how frequent can ships departure, how long it takes to arrive. 

 
Posted : 30/04/2022 3:29 pm
(@srp98)
Posts: 78
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Before committing to a vendor or company, thorough research should be done to ensure that they are a reputable and reliable company. Questions to consider include: (1) what types of products/services are being offered (2) how long have they been in business for (3) do they display testimonials from customers. It may be worth while to look into other customers and ask for their opinion on the vendor for an unbiased opinion. Another step to take if possible is to ask if a tour of the facility can be provided to ensure proper working conditions and regulations are in place. After doing so, a mass order should not be placed, but perhaps requesting a sample size and running tests on those using a scope of work and seeing how they perform would be the way to go. This way, a commitment to a mass order is not being placed thereby eliminating a financial burden. Another benefit to this is that a sample size will allow for proper testing to see if the product/service will perform as expected.    

 
Posted : 30/04/2022 11:02 pm
(@terril_vallikalam)
Posts: 39
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Of the many things to consider, one main thing is how reliable the company and their field service engineers or other liaisons are. In the case of this example, though the product is a good quality and is within the price point allotted for it, since there is a communication barrier, it is hard to communicate with the company or even find anyone at the company willing to communicate with us. Since our team is placing a large order of the product and hoping to purchase more going forward, we need to trust and rely on the company to continue giving us the same level of product quality. If something were to go awry on their side in terms of production, we have a right to know. Though UltraMex is a more expensive pouch, there may be people at the company that don't have a similar communication barrier and it would make conversations smoother. In general, medical devices and equipment in general have the chance to malfunction any time. Whether it be a brand new product or a product that is reaching its end of life, we still need to trust the company to replace or fix the product. Having better communications and trust with a company will help build a long term relationship with them.

 
Posted : 01/05/2022 7:44 am
(@lei-hao)
Posts: 35
Eminent Member
 

In my opinion, the reputation of the vendor should be one of the factors which could affect the decision making. Since some unexpected issue may arise during the trading process which is similar to the problem we faced in the simulation 4, the project team might need to work with the vendor to figure out the issue. In this situation, the vendor’s attitude should be important. If the vendor could help the project team actively, the troubleshooting process could move forward smoothly. In other words, the project team should consider the comments for other customers to make the decision. Also, as other posts mentioned, I also think quality is an important factor.

 
Posted : 01/05/2022 7:59 pm
(@veron_perez)
Posts: 78
Trusted Member
 

When placing a mass order for a project there are many different factors that go into making such a large purchase for a large quantity. The shape and design need to be verified to ensure that they are the correct size and there isn't a bulk order of the wrong sized product. The quality needs to be checked to ensure that they are made properly and that money isn’t wasted. Speaking of money, even though quality should be important, when working with a budget, the pricing needs to be important to ensure that it is within range. And one final factor would be to research the company before placing the order, this is to ensure that they have done orders like this before and to check any issues that previous customers may have had prior. 

 
Posted : 25/04/2023 10:35 pm
(@hk425)
Posts: 39
Eminent Member
 

As others have mentioned, there are loads of other factors to consider while placing a mass order for a project. First, it’s a good idea to research the company; Are they trustworthy? Are their policies fair? Are their manufacturing practices safe? Is their client-service division good? Etc. Once this information is gathered, it’s important to research whether they provide the product you want. This depends on the product the company wants and how many different aspects that product has. In this simulation, it was just a pouch for the smart device, in other cases, it might be a bunch of plates, rods, screws, etc. In addition to different types of product, the company might also have size specifications for each of those products. It’s also imperative to check how many of each product the company will be able to provide at a time. CamTech was able to send 10,000 items, which were necessary for BoneFix to have so the production of the FusePack 2000 wouldn’t stop. After that comes the delivery time and costs. How much does the company cost for delivery, and how much do they charge for delivery? These costs are in addition to the actual costs of the product, of course. That also plays a huge part in deciding a vendor. Something else that I think is really important is to be able to have communication with the vendor. In this simulation, my group suggested reaching out to the vendor’s manufacturing department to isolate the cause of the solvent odor. Dr.Simon had said that they do not speak English and therefore, we would not be able to communicate with them. To prevent such situations, it’s a good idea to find a vendor you can easily communicate with, although this isn’t always possible. These are just a number of factors to consider before finding a vendor. The criteria will most likely change depending on what the project requires.

 
Posted : 30/04/2023 9:52 pm
(@ej851996)
Posts: 78
Trusted Member
 

The inspection information about the company before placing the order. Where is the company, and does their product compliance the regulatory institution where we are? Some component concentrations might be illegal from country to country. And the most important in this simulation is how their after-sale service department is. In my opinion, the company should place the order from trustable suppliers. If it is necessary to place the order from a new supplier, preparing all information or reviewing is significant. Having a contact or conversation is critical to ensure there is somebody who can find out when the problems happen. Knowing the supplier, especially the primary supplier, is good for the project.

 
Posted : 30/04/2023 10:43 pm
 Wk46
(@wk46)
Posts: 39
Eminent Member
 

I have a new perspective on this issue. In our group simulation, we found out CamTech did not speak English on their one and only phone contact. Before placing an order, there should be clear communication. If customer service cannot correctly handle the communication barrier, then this can be a serious problem if two companies run into miscommunication. I strongly believe that if CamTech and the team's company were able to have constant and clear communication, the issue with the bags would not have occurred. Furthermore, this implies that the language barrier could have to led to significant reluctance to communicate in the first place. I found from personal experience if communication is difficult, regardless of context, both sides would often refrain from proactively seeking communication and clearing up, as it would require substantially more effort and time to get a clear message across. There is a chance that the company is at fault for "order and forget" attitude. Usually, companies would order samples before 10,000 of any item gets made. This laziness costed the company valuable time and money. Therefore, a good practice in general is to keep a clear and consistent communications channel with all your suppliers and encourage transparency for any issue.

 
Posted : 30/04/2023 10:59 pm
(@mj386)
Posts: 78
Trusted Member
 

I believe that quality is the number one factor one should consider when placing a mass order. While the product might be cheaper, there could be an underlying reason why it was cheap, to begin with. While one is thinking about the now and saving in costs, in the future, you would have to spend more money trying to return the products and reaching out to different vendors in a limited amount of time. Another factor is to make sure that you can communicate with the company that you are trying to deal with. In the simulation, they didn't have multi-lingual people to communicate with so that made the whole process difficult to deal with.

 
Posted : 02/05/2023 10:18 am
 dmf2
(@dmf2)
Posts: 57
Trusted Member
 

When considering placing a mass order for a product, price is just one of several crucial factors to weigh. In my opinion, the number one factor other than price would be quality. It is paramount that the product is able to meet a set of standards and perform as expected. This, in turn, will prevent defects, returns, and customer dissatisfaction. Another key factor would have to be supplier reliability. While the supplier may state that they will be able to provide the products of a mass order, rather than trusting their words, it can be be more beneficial to evaluate the suppliers track record and performance of delivery. Working with a reliable supplier can reduce the risk of delays and disruptions to the supply chain. Lastly, another key factor other than price would be total cost of ownership. This includes calculating expenses beyond the initial purchase price like maintenance or disposal, which provides a more accurate assessment of value. Ultimately, by carefully weighing these factors alongside price, organizations can make informed decisions when placing mass orders, ensuring efficiency, reliability, and long-term success.

 
Posted : 15/04/2024 9:55 pm
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