Essay About Milling Machine Suppliers And Own Air Conditioner

Standard Cost
Essay Preview: Standard Cost
Report this essay
Ian, the Production manager was quick to respond. “It wasnt our fault.
Oliphants, the milling machine suppliers guaranteed that it would take only 8
days to run the new machines in. In the event, the computers that controlled the
machines could not stand the high temperatures and high humidity in the
production area so they kept malfunctioning. We retrofitted each station with its
own air conditioner to keep the computers running, but that put us way behind
schedule. Oliphants say that the milling machines were fine, it was the
computers that were faulty, and that was not part of their contract. The computer
suppliers say that their equipment was never intended to run in the equivalent of
a steam bath, and they refused to take responsibility. We will just have to write
that off to experience. I might add that if you had followed my original proposal
and bought the installation as a turnkey operation it would have been the
contractors problem, not ours. We may have saved about $5,000 by letting the
sub-contracts out separately, but we lost in the end. I dont like to say I told you
so, but I did! Now we have an embarrassing result. The budget was for 10 days
of set-up and 20 days of production. We actually had 20 days of set-up and 10
days of production.
Henry was not convinced. “Even if what you say is true it does nIan, the Production manager was quick to respond. “It wasnt our fault.
Oliphants, the milling machine suppliers guaranteed that it would take only 8
days to run the new machines in. In the event, the computers that controlled the
machines could not stand the high temperatures and high humidity in the
production area so they kept malfunctioning. We retrofitted each station with its
own air conditioner to keep the computers running, but that put us way behind
schedule. Oliphants say that the milling machines were fine, it was the
computers that were faulty, and that was not part of their contract. The computer
suppliers say that their equipment was never intended to run in the equivalent of
a steam bath, and they refused to take responsibility. We will just have to write
that off to experience. I might add that if you had followed my original proposal
and bought the installation as a turnkey operation it would have been the
contractors problem, not ours. We may have saved about $5,000 by letting the
sub-contracts out separately, but we lost in the end. I dont like to say I told you
so, but I did! Now we have an embarrassing result. The budget was for 10 days
of set-up and 20 days of production. We actually had 20 days of set-up and 10
days of production.
Henry was not convinced. “Even if what you say is true it does nIan, the Production manager was quick to respond. “It wasnt our fault.
Oliphants, the milling machine suppliers guaranteed that it would take only 8
days to run the new machines in. In the event, the computers that controlled the
machines could not stand the high temperatures and high humidity in the
production area so they kept malfunctioning. We retrofitted each station with its
own air conditioner to keep the computers running, but that put us way behind
schedule. Oliphants say that the milling machines were fine, it was the
computers that were faulty, and that was not part of their contract. The computer
suppliers say that their equipment was never intended