I. Background Information
Hudson Fabricators, Inc. is a small fabrication firm which was founded in 1976. It produces various items such as hoppers, light building steel, conveyors, supports, frames, and platforms for a lot of major companies mostly around central Ohio, and even to different parts across the globe. Hudson Fabricators, Inc. has around 12 to a maximum of 40 full-time employees, depending with production. The company operates in a job-shop environment. Some of their clients are: Marzetti Foods, Rockwell Internations, and Anheuser-Busch.
II. Summary of Finding
Hudson Fabricators, Inc. only uses materials certified by the American Society of Mechanical Engineers (ASME), and ASME has requirements Hudson needs to…show more content… The company should either cut ties with the broker or just absorb them into the company instead. Clearing up the 90% of materials purchased from the broker may save the company a lot of money.
Next thing Josh can do is to purchase raw materials in bulk order, this will sustain the relationship between the company and the supplier and then get those supplies in a lower cost. Different orders come especially for a job-shop organization but it is also necessary for future preferences and so that it clears up the lead time from getting those things from the suppliers.
VI. Answer to Case Questions There were no case questions presented in the case. VII. Learnings
The group realized the importance of having and maintaining quality products and services which was clearly seen on, despite Hudson Fabricators, Inc. lack of technology as a fabrication firm, they still incur profit year after year; which is most likely because of their top quality products which are being certified by ASME. In addition, it is very significant for any firm to invest on the right things. Hudson Fabricators, Inc. is willing to invest on the $3,000 to $5,000 ASME audit every 3 years becase it maitains the company’s quality and they deem it highly worth it despite the price.
