Page 252 - Writing Winning Business Proposals

Paramount Consulting’s Proposal Opportunity at the ABC Company 243

accepted. As plant manager, he set several goals for the plant, including meeting
the continually increasing production schedules, controlling costs by improv-
ing manufacturing methods and processes, maintaining and improving product
quality levels, and fostering harmonious employee relations. He believes he has
been reasonably successful in meeting those goals; apparently, so did top manage-
ment because after about five years, he was promoted into his current position
and became part of the president’s management team.
Gilmore asks Gupta to tell him about ABC’s satellite manufacturing operations
since he mentioned them last week during their discussion of capacity expansion
alternatives.
“They are relatively small operations in two rural cities,” he says, “producing
certain low-volume, special-purpose units in the product line. Both of the facili-
ties are on plant sites large enough to accommodate some building expansion.”
But the manufacturing workforce in both cities is rather small and might
not support a major expansion. His supervisory groups there are relatively thin
and would have to be “beefed up.” But an expansion to accept a limited part of
the product line in addition to expansion at the existing facility probably would
enable ABC to meet its forecasted demand for several years.
Gilmore finds Armstrong to be very congenial, with a demeanor that reflects
his guidance of a key and successful division at Consolidated. They spend some
time discussing business conditions generally and Consolidated and ABC in
particular. Armstrong asks Gilmore to tell him about Paramount, which he is
pleased to do since Armstrong hadn’t attended the previous week’s meeting.
Gilmore then leads the discussion to the proposed study. Armstrong believes a
sound, comprehensive study is critical to the future of the division. Only by pro-
viding manufacturing with the resources it needs to operate cost effectively and to
maintain and improve product quality and service levels can the division hope to
maintain its reputation, compete effectively in the marketplace, and assure success
for the company and its employees. He wants to initiate the study quickly because
he knows that if, for example, a new facility is required, it probably will be close to
two years before it reaches full production. And, he points out, some critical work
centers are already operating on a third shift. Gilmore replies that Armstrong’s
time estimates are realistic and that Paramount can initiate the study quickly.
Armstrong again emphasizes that the study would have to be thorough and
convincing. He tells Gilmore that although he operates ABC with a great deal of
autonomy and that although ABC is very successful, it—like other Consolidated
divisions—has to compete for funds “at the company trough.”
“Therefore, as you’ve probably been told, the study will have to be well docu-
mented and the returns from the investment clearly defined, because an expansion
project of this probable magnitude will require capital funding by Consolidated,
and our request will receive close scrutiny at corporate headquarters.”