Engineering Design

Engineering Design

Engineering Design



Suite Success Ltd. (SSL) is a Canadian company with headquarters in Winnipeg, Manitoba. SSL designs and constructs magnetic resonance imaging (MRI) suites – rooms in which MRI machines are operated. SSL does not manufacture MRIs, but has a team of engineers and designers who must create a functional space to operate the machine, while providing proper protection to staff who work with these powerful magnets. Each job is unique, as the MRIs are usually being installed in existing buildings. The clients that SSL serves are hospitals, clinics and private medical facilities. As these are very high cost items with relatively infrequent repeat business, SSL sells its MRI suites world-wide. Mass media advertisements are not particularly effective at reaching SSL’s target market. Instead, SSL relies primarily on testimonials from its customers, most of whom are willing to allow potential customers of SSL to visit their site and see the suite in operation. Due to the high cost of custom designing an MRI suite for each customer, SSL had determined that it does not have sufficient capital to sustain its current level of operations. Top management is anxious to grow the company, so that revenues and cash flows will be more stable, which will require a significant increase in cash. SSL is seeking investors from both the United States and Europe. At the present time, SSL has a sufficient number of engineers and designers to be able to increase its volume of sales by 50%. One of the senior engineers is one of the founders of the company. He has indicated that he is quite proud of the company he has helped to build, and would like to retire within the next year to enjoy the fruits of his labour. Required: 1) Prepare a report that identifies four risks faced by SSL. Explain why each is a risk, that is, what is the potential negative outcome that could occur? 2) Using the five options for dealing with risk that are discussed in the paper at the following link, recommend to SSL how they should manage each of the four risks that you have identified.

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