• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study. Custom Fabricators Inc. From Lean Manufacturing to Contract Manufacturer

Extracts from this document...

Introduction

´╗┐Operations Management Case Analysis: Custom Fabricators Inc. ? From Lean Manufacturing to Contract Manufacturer Introduction This paper analyzes and examines the case article entitled ?Custom Fabricators, Inc. ? From Lean Manufacturing to Contract Manufacturer. It aims to identify the business challenges faced by Custom Fabricators, being led by Ben Lawson, and the solutions or strategies that can be implemented to maintain and enhance its position in Orleans Elevator?s business supply chain. Custom Fabricators Inc. Challenge: Orleans Elevators Materials Outsourcing The main business challenge that Ben Lawson is facing as Chief Executive Officer of Custom Fabricators Inc. is how to re-think or re-position its business in order to cope with Orleans Elevator?s action of outsourcing low-cost raw materials from Mexican suppliers through the use of an internet purchasing system. Custom Fabricators Inc. Strategies Utilizing the Comparative Advantages With its long working history with Orleans, Custom Fabricators Inc. ...read more.

Middle

By focusing on products to which it has expertise and that return the highest profit i.e., discontinuing production of products with lower profit margin, Custom Fabricators Inc. not only maximizes its comparative advantage but also improves its profitability. To achieve and deliver its value proposition of providing the lowest cost control panels and motor housings, Custom Fabricator Inc. will implement the following strategies: (1) outsource low-cost raw materials, (2) explore technological developments in manufacturing elevator control panels and motor housing to improve efficiency and cost-effectiveness, and (3) expand its market clientele. Custom Fabricators Inc. must be able to find and expand the number of its suppliers on its supply chain that offer low-cost raw materials. With globalization, this may entail the inclusion of foreign suppliers on its supply chain. Also, Custom Fabricators Inc. must explore recent technological developments in producing elevator control panels and motor housings. ...read more.

Conclusion

Transporting the parts from Mexico to Bloomington would take at least a week. In order to avoid unnecessary delivery turnarounds and to be able to put a ceiling on the delivery time, Custom Fabricators Inc. should work with Orleans in also negotiating with the outsourced firms that the suppliers shall be responsible for the insurance of the materials prior to the turnover to Custom Fabricators Inc. The purchaser and supplier should also agree on acceptable delivery service level agreements to safeguard Orleans and Custom Fabricators Inc. from late delivery costs. Custom Fabricators Inc. solely depends on Orleans in acquiring materials that the firm needs to manufacture the elevator components. With the availability of outsourced firms providing cheaper raw materials, Custom Fabricators Inc. should look at this as an opportunity to consider outsourcing the raw materials that they need, which could possibly support the company in exploiting new and widening their current market segment. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Microsoft Case Study. Objectives, structure and marketing.

    Stars Finally stars are the best product in the business simply because they have a high market share and also high market growth. These products are hopefully as after gaining maturity it can still move onto the next stage as cash cows.

  2. Proctor & Gamble, Inc. (Scope Case)

    If successful, this opportunity can create a new perception of Scope as a competitive, innovative company who is ahead of the competition and retain its position as market leader. That's also cause for more uncertainty, since there has to be a lot of innovation and there is no way to tell where the future of mouthwashes will lead us.

  1. Unit 9: Marketing Strategy

    This depends on whether the "market" is that of the UK or that in Sutton-on-Sea and the surrounding area. If the market includes the whole of the UK then the business is definitely a dog as it will have a very small market share with low prospects of growth.

  2. PEST is a planning tool which is used by a business to evaluate and ...

    product flavours, in the short term Ginsters will be unable to meet this aim as they will have to pay money to be able research into new food flavours and products, and then they will need to spend money to be able to make the new products.

  1. The international business environment of Apple Inc

    Because the business sells on such a large scale results to the business receiving investments. The investment can be physical investment such as assets being in another country. The definition of this however can be extended to include lasting interests in enterprises that operate outside of the economy of the investor.

  2. Case study of the Unilever Company

    All Unilever products are very important at in Mexican?s life; each one has an important role in home, can be for personal care, home hygiene or nutrition. Another way in which Unilever affects Mexico is their relationships with the communities; this company is very responsible with the social environment of

  1. I will be identifying the legal criteria for offer and acceptance in a valid ...

    the world, there has been quite a lot of problems faced with offers and acceptances that are sent using forms of communication such as emails or fax. However, the postal rules still apply in these situations. The Electronics Commerce Regulations 2002, however, states that contracts which are created and sent

  2. Assignment 1 - Understand the legal requirements for a valid contract

    box for return mail even if, in fact, it never reaches the offeror. An Invitation to treat as in the case of Partridge v Crittenden 1968, where it was held that an ?advert in a magazine is an invitation to treat.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work