Adam Burke and Pbm Plastics: Message in a Bottle

Abstract

This case is used in Darden's EMBA and Global EMBA programs. It works well in courses dealing with turnaround specialists or change management. With a cross-disciplinary perspective, this field-based case uses the experience of a company with a supplier that fails to meet its production commitment to set the stage for an analysis of supplier power, human capital, operational effectiveness, and leadership. It offers a discussion around the interaction between people, process, and purpose, and provides an opportunity to introduce basic operational, market, management communication, and leadership terms that can be explored in following classes. The material includes an overview of a manufacturing business and the issues involved in day-to-day production.

Excerpt

UVA-OM-1491

Rev. Mar. 21, 2013

ADAM BURKE AND PBM PLASTICS: MESSAGE IN A BOTTLE

Between his responsibilities at his new job and trips to his old company, Adam Burke, former president of PBM Plastics, was scrambling. Only four months after selling his disposable preformed baby bottle liner business in August 2005, the buyers were unable to meet orders. Ordinarily, that might not be a former owner's problem—but his current company, PBM Products, had a supplier exclusivity contract with his former firm, which was now part of a company called SparPack.

Within weeks, PBM Products needed to ship SparPack product to retailers or default and incur hundreds of thousands of dollars in fines—not to mention let customers down. On top of that, pulling the contract from his former company could put the SparPack division out of business and all his former employees out of work. Given the scarcity of liner suppliers, Burke was in a bind—there was no one else who could meet the obligation. Was there something he could do to get his former company back on track in time? What should he do next?

Disposable Baby Bottles

. . .

Keywords: reliability, inventory, tactical, customer, defect rate, operational excellence, capacity, process design, sourcing, quality