 |
 |
 |
 |
|
 |
 |
items which would be established at the initial discussions between Driffield and the
manufacturer special requirements would be additionally costed. The completion time for
the typical Burke product would be around two weeks from the date of design despatch.
Driffield Toolmakers required a minimum annual order and were likely to be around ten per
cent more expensive than Panopil.
Advanced Tool Design (ATD). ATD was a small newly established company, developed to
provide tool cutting services for the specialist manufacturers servicing the Channel Tunnel.
Although it had the latest tool cutting technology, as a new company it had not yet
established a reputation and was eager to offer its services on a single project basis in a
similar fashion to Panopil. Because of fluctuations in demand from the Channel Tunnel, it
could not guarantee as fast a turn round as Driffield Toolmakers. Of the three potential
suppliers the company offered the fastest potential turnaround of about 18 days (though
this varied according to the complexity of the tool), there was no minimum order and the
cost was likely to be between that of Driffield Toolmakers and Panopil.
Foundry
Though the foundry area was the most up to date part of Burke's production process, it
was limited to temperatures up to 1500
O
C and could not handle the largest sizes of
industrial valve which the company might be asked to produce. It was likely that around a
quarter of total future production would require either higher temperatures or the ability to
handle larger sizes, the current plant would not be able to cope effectively with the entire
range of new products. As the most recently replaced equipment, cost savings on
production of the current range would not be substantial, but the installation of a new
system so soon after it had been initially installed would worry the major investors which
had put up the money for the initial installation only 18 months previously.
With the decline in manufacturing industry in the Midlands, there were a large number of
companies in the area that had excess foundry capacity and were keen to gain extra
revenue by subcontracting. Because they were locally based none of the prospective
subcontractors required any minimum order arrangement and would cost the work on a
cost plus basis, the elements of which were clearly understood: size, complexity,
temperature, and raw materials. Three local companies seemed likely to provide high
levels of service.
Extruded Metal. Extrum was one of the largest metal manufacturing companies in the
West Midlands with expertise dating back to the turn of the century. It had three large
foundries, one was currently closed and the other two were operating at between 66 and
78 per cent capacity. Because of its large size and spare capacity, Extrum could offer a
rapid completion of work with an average quoted delivery time of three days, but was more
expensive than the other two alternatives, though around 10 per cent cheaper than Burke
current manufacturing costs. It was also insisting on a fairly large annual commitment,
though this appeared to be negotiable.
David Engineering. David Engineering was a medium sized engineering firm, with a
turnover about 50 per cent higher than Burke's. It specialised in the manufacture of high
quality steel for the construction industry, especially the production of girders where high
levels of purity and performance were required. It had one large foundry, which operated
at around 75 per cent capacity. David Engineering prices appeared to be around five per
cent lower than Extrum, though this and the lower minimum order requirement was to an
extent offset by the substantially longer delivery periods of up to ten days.
 |