Concept explainers
Case summary:
Company RM runs a boat manufacturing business which has differentiation with its business strategy compared to other companies. With constant innovation and seeking customer inputs, dealers and consultants in the design stage, the firm has successfully managed to provide unique products to its customers.
The development phase of the product is speeded up by immediately taking the product from design stage to styling studio. Having released various products like water-skier, the production personnel are put under pressure to respond to the new product. The lifecycle time is 3 to 5 years.
The firm found that the product development part can be fastened by involving suppliers in the design phase. The CAD provides product specification after the product had completed the concept and styling phase.
A plug is formed by foam-based carving which is drove by the specifications from CAD system. The new design requires permanent molds which take about 4 to 8 weeks. Boats are made by joining the molds.
To explain: The engineering savings done by Company RM.
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Principles Of Operations Management
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