Operation Management - Case Study Analysis

2196 Words Jun 23rd, 2012 9 Pages
Author: Diana Nagy, MBA FT 11, Grenoble Graduate School of Business
Course: Operation Management
Prof.: Alexander Fidanza
Assignment: Custom Molds Inc. - case study analysis
Submitted: November 2010

Custom Molds Inc. – Case Study Analysis 1. What are the major issues Tom and Mason Miller are facing?
Looking at the workflow of Custom Molds raises several questions. First, customers’ complaints about delivery delays have increased. The voice of the customer always signals a problem. Tom and Mason Miller now have to identify where that problem lies and how it can be solved. Following the 6 step analysis presented by the authors of Operation Management Strategy and Operations [Krajewski J. Lee, 2001], the first step is to identify where
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The production of parts, however, was not a labor intensive process. It required speed. The competitive advantage of this company was therefore the ability to produce highly accurate molds as well as quickly delivered parts. One of their competitive advantages was the linkage between the two processes. While another company might have had to rely on suppliers for the molds, Custom Molds produced both in house. Having a well managed inventory of molds allowed the company to supply additional parts to former customers very quickly. It also ensured customer loyalty. The company thus, differentiated itself from the competition by being flexible enough to match market changes, reliable in meeting schedules and fast in order delivery.
Recent changes in the industry challenged the company’s competitive advantage. With orders for parts booming, the company cannot afford bottlenecks in this process. The total number of parts produced in 1988 compared to the total number of parts produced in 1990 reveals an increase of more than 200% (Table 1). Orders for 1000 to 5000 units have increased 6 to 8 fold which brings the company close to mass production. Clearly, focusing on parts production will become more profitable for the company. The question asked here should relate to capacity. Do we have the capacity to handle this kind of growth? How can we improve our process to avoid delivery delays to