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Information Management
You as J Franklin have decided to work during the first weekend at Burke Engineering to
begin to sort out the information system so that the company could take effective decisions
on where it should be going and what it should be doing. The opportunity for three days of
uninterrupted work Saturday, the 13th of March, Sunday and a public holiday on Monday
had been too good to pass by, especially as the hotel accommodation, that J was still
using, was uncomfortable and noisy. J had found that within Burke Engineering, each
department was largely independent.
This made information on specific departmental matters inaccessible to others. No attempt
had been made to integrate information, or to produce common approaches to particular
problems. This worried the new MD who felt strongly that the company could not function
efficiently without the easy transfer of information. J found that there was no systematic
collection and organisation of information within the firm, and was determined to establish
a system that would allow all employees, including management, to understand the
problems that faced them so that everyone would be aware of all the issues that were
involved in reaching sensible decisions.
On the Saturday morning, at 0930, the telex started to clatter with the following message:
"Please supply quote for 155 phosphor bronze series 5 valves in dollars best price Export
with end user certificates for Saudi Arabia. Must have decision as soon as possible as
client is impatient. Absolute deadline for quote Monday 15th, delivery by end of June.
Payment 60 per cent on acceptance of quote, remainder on completion of order.
Please reply as soon as possible. Should you be able to reply sooner, possible further
order before the end of the month."
Signed Bajin Arromani.
Because the quote would have to be completed before the end of the holiday, you as J
Franklin begin to try to contact various members of the production, technical, and sales
and marketing departments who might be able to provide information about the order.
Most of them could not be reached due to the lack of contact addresses, while the
remainder were away from home. However, with the help of the security guard, who was
also working over the weekend, the MD was able to get into the marketing department and
find some information about the product and its costing.
By checking the current product list, it was clear that the company did not normally
produce the series 5 valve, one of the standard valve range, in phosphor bronze, nor did it
commonly deal with orders requiring end user certificates. You know that though the
company manufactured some items in phosphor bronze, the larger valves, such as the
series 5, were not produced in it, as there were substantial problems in casting the
material. There was no information as to whether the company actually manufactured it.
The MD was also aware that phosphor bronze valves were commonly used in high
temperature chemical plants, especially those producing pharmaceuticals or pesticides.
Such phosphor valves could be used for the manufacture of chemical weapons. However,
the total value of the order for the usual valves would be around 560,000. With the added
value and complexity of casting in phosphor bronze, the order would be very profitable,
and with the majority of the order paid in advance, the company could not possibly lose.
The order would provide a substantial boost to the company cash flow, which was
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