Caselet 2

As a Technical Manager, Ashok had introduced a number of innovations in his company. But
he felt most excited about his latest plan of introducing forging presses which offered a number
of advantages including far higher levels of productivity and reduced material consumption. He
had prepared an investment proposal which was in the region of Rs.4 crore, discussed it with top
management, and had obtained in principle approval to go ahead.

He collected considerable data on different equipment manufacturers, invited quotations from

various suppliers and finally negotiated for the forging press to be supplied by a company in
Germany. The press was ordered and work proceeded on its manufacture in Germany.

However, there was some hesitation on the part of both the top and operating management. For
some months, the company was passing through a lean phase and there were hushed indications
that the company should not opt for this kind of investment. But Ashok was convinced that the
future lay in forging presses, and they were getting excellent equipment at an attractive price.

On the fateful day, Ashok found two documents on his table. There was a letter from the
supplier that the press was ready and that he should come for inspection and taking trials and
delivery of the equipment. Another was a curt note from his General Manager (GM). The GM
had written that he was not at all convinced about the forging press. He instructed Ashok to
cancel the order.

What should Ashok do and why?