Custom Molds Inc

1470 Words6 Pages
1. Case Background Founded in 1975, Custom Molds Inc. is the producer and supplier of bespoke molds and plastic connectors to the electronics industry. Building on its reputation, the company expanded in-house operations in the 1980s to include the limited production of plastic parts geared towards R&D based initiatives. During the early 1990s, the company realized that the shifting structure and market environment of the electronics industry was starting to impinge on the company’s manufacturing processes. This created a host of issues. 2. The Issues and Possible Causes The main issue is that their clients have moved away from the old vertical manufacturing structure (i.e. acquiring the upstream/downstream components of the value…show more content…
The company can also use a unit within its own process, with exceptional performance levels, as a yardstick for other units. These types of practices can help the company formulate goals and targets for performance (Slack et al, 2008). It can also be achieved by methodically measuring internal services, products and processes against those employed by competitors. Thus, Custom Molds stands to learn a lot from other companies through benchmarking. It can also help the company identify key processes and bridge the disjunction between the company’s actual state and its expected state (Boxwell, 1994). It’s also an expert method for identifying the bottlenecks which have been plaguing Custom Molds. For instance, the company’s competitors might be able to get products to customers on time. If management were to investigate the flow of their own processes [Figure 1-Question 2], then they would realise that too much time is being wasted waiting on raw materials to be delivered before starting work. A possible solution might be to hold higher raw material inventory, so that preliminary processes can begin, while waiting for other materials to be delivered. This can help reduce lead time for orders. In this way, the benchmarking technique will present the company with new opportunities to evolve with the market. However, the process can be expensive and time consuming because it might
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