See attachment.  Answer all five questions………

 ATTACHMENT PREVIEW Download attachmentTHE PEACH COMPUTER COMPANYDonald Bright, supply manager at the Peach Computer Company, was preparing his notes for ameeting to be held that afternoon. The meeting concerned the construction of a new $6 million,120,000-square-foot building to be located near Dayton, Ohio. The principle issue to bediscussed, and hopefully resolved, was what method of specification the firm should use in thepurchase of its new building.When the requirement for the building first arose, the plant engineer at Peach advocatedthe use of a design firm as the desired method of developing the specifications. Such firms wereemployed successfully by Peach on seven previous construction projects it had completed duringthe past five years. Under this approach, a design firm, traditionally referred to as an architect-engineer or simply A-E, is retained to develop the detailed plans and specifications for the newbuilding. These specifications are identical in concept to the materials and method-of-manufacture specifications used in the manufacturingindustry to purchase manufactured goods. After they are developed and approved, theconstruction plans and specifications in sequence become (1) the basis for solicitation of bidprices from qualified construction firms, (2) the cardinal part of the resulting constructioncontract, and (3) the standard against which inspections are performed.Don had conducted some preliminary discussions with members of the Dayton Institutefor Supply Management regarding the cost for A-E services. He learned that the fees for localprojects similar to his were averaging 8 percent of estimated construction cost. This percentagewas in line with Peach’s experience on its own projects.One of the members of the Dayton chapter with whom Don talked suggested that he readan article in an issue of theCalifornia Management Review (CMR).The article, entitled“Inflation, Recession, and Your Building Dollar,” dealt with the purchase of buildingconstruction. Don learned that several alternative approaches to supplying building constructionwere available. One approach particularly appealed to him. It provided for the use of performancespecifications. Such specifications, instead of describing the building item by item in terms of itsphysical properties, describe in words the building’s intended function, i.e., how large it must be;how well lighted, heated, and cooled it must be; its longevity; its operating costs; and so on. Afterthe performance description is developed, it is used to solicit from qualified bidders a packageproposal that includes (1) a design approach, (2) a firm agreed price, and (3) a guaranteedcompletion date.TheCMRarticle documented that when properly used, performance specifications forbuildings can result in a significant savings in both dollars and time. Additionally, the article datarevealed that when this method is correctly used, a considerable savings in both the cost and thetime required to complete the project is a reasonable expectation. Furthermore, the articleindicated that the buyers of buildings purchased under this method have experiencedapproximately equal satisfaction with their buildings as those who used A-E’s.In preparation for the afternoon meeting, Don decided to develop lists of advantages anddisadvantages for each of the two approaches he was considering. After an evaluation of bothlists, Don expected to be able to make a formal recommendation as to which method he thoughtPeach should employ.

View the Answer1.Should Don get any additional information? Explain.2.Discuss the inherent advantages and disadvantages of using performancespecifications.3.Discuss the inherent advantages and disadvantages of the plans and specificationsmethod of describing quality.4. Assuming that Don’s investigation and analysis indicates that both methods arepractical for use by Peach, discuss which approach Don should recommend.5.Explain why one method will require more active involvement on Don’s part than theother approach.

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