Plastechonolgy Case

Plastechnology, Inc.: Decisions, Decisions, Decisions
March 31, 2003: Mark Greene and Larry Quinn sat in a local café with apparent stress and frustration written all over their faces. They were anxiously poring over their business plan and doing some deep soul-searching. They wanted to be in business for themselves so badly they could taste the entrepreneurial thrill, but they were stuck. "Sowhat should we do?" asked Mark. "Should we take a chance and buy the equipment at auction tomorrow? Quit our jobs and 'go for it'?” "But how will we support our families?” asked Larry. "Maybe we should make a proposal to PrintroneX? There must be some way to pursue this idea. What is the right answer? I just wish we could figure out a course of action. I can't sleep".
The idea: Mark Greene andLarry Quinn worked together at PrintroneX Corporation in the Plastic Materials Development department since 1999. These were intense times for PrintroneX. Their breakthrough color printing technology had been unveiled at the past stockholders' meeting, but the announcement was premature. Their printer was not ready for commercialization, and one of the glitches was custom plastic injection moldedparts. Many significant quality problems persisted with these outsourced plastic components which prevented PrintroneX from launching the new color printing system. Dr. Edward Lane, the CEO, was driving the company very hard to solve the problems and to get the new printing system to market. Greene and Quinn were responsible for solving the quality control problems for the plastic components: gears,lenses, mirrors, the atomizer, the print head, and other critical parts. They traveled around the country, working with custom plastic molders to develop compliance procedures and manufacturing specifications, and to refine processes, materials, tool and part designs. After three years of this intensive traveling, Greene and Quinn began to wonder why there were so many persistent manufacturingproblems. Perhaps the country needed a quality-oriented custom manufacturer of small, precision injection molded plastic parts for very demanding applications. They concluded that there was an opportunity and they began to get excited about the possibilities of launching their own business and filling what they believed to be an unmet market need. They had even thought of a name for their company:Plastechnology, Inc.

Mark Greene Mark, 34 years old, graduated from University of California with a degree in biology. He then went into the army for two years, doing research on optical materials. He spent two years at DuPont Plastics Company, working on improved plastic formulations as a development engineer. Currently, he is the Manager of the Plastic Materials Development Department atPrintroneX. Mark has a wife and two children - Adam, 5, and Debbie, 2 years old. They live in their own modest home, which has a sizable mortgage. Recently, Mark's father became seriously ill and his mother required considerable emotional support. Mark's family life is very important to him.
Larry Quinn Larry, 3I years old, graduated from Lowell Polytechnic Institute with a degree in PlasticEngineering. Throughout his professional career, Larry has distinguished himself as a creative product and process development engineer. Mark is Larry's boss in the Plastic Materials Development Laboratory at PrintroneX, and they enjoy a productive working relationship. Over the years, they have grown to be very close friends. Larry's family life revolves around his mortgaged home in the suburbs, his wife,his dog Winston, his children - Ingrid, 3 and Amber, 1 year old.
Injection Molding Injection molding is a high-volume manufacturing process which is capable of producing a wide variety of plastic parts from a broad range of plastic materials. In operation, plastic pellets are placed in the hopper and conveyed along the barrel under conditions of high temperature and pressure. The molten...