Case study 6-1

Case study 6-1 - Case 6-1: Moren Corporation Name: Xinhong...

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Case 6-1: Moren Corporation Name: Xinhong He, Lisi Xu, Ailun Zhang, Qifeng Xu, Shangjie Shen. Group: Fairy Tail Date: 10/05/2011 Situation: Mr. Carter, the Vice President of Supply O Faced the responsibility of deciding with which supplier the business was to be placed O Responsible for the first phase of engineering design A new method of carrying the power lines O Using ornamental tubular poles instead of towers had been adopted O Moren had had no previous operating experience with poles O Subcontract the design engineering, fabrication, and erection of the new line O The cost for these three phases are $1,500,000-$1,800,000, $90 million, and $78 million, respectively Current situation O Moren Corporation, established in 1895, was one of the largest power utilities in the eastern United States O It serviced a highly industrialized area of 10 fossil-fueled plants, with assets of over $19 billion and demand doubling every decade O It had already earmarked funds to increase its kilowatt capacity from 8.4 million to 13 million over a four-year period O The company was well known for its advanced technology and its good public relations O Although Moren was stepping up its older lines to 230kV, 345kV was adopted for the new line- ornamental tubular poles O A line using poles costs twice as much as the conventional towers but is still
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Case study 6-1 - Case 6-1: Moren Corporation Name: Xinhong...

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