Since Amazon.com’s founding in 1994 it has gone from a company that sold books out of a garage to a multinational e-commerce juggernaut that now boast over $61 Billion dollars in revenue. Founded by Jeff Bezos in 1994, and launched in 1995 Amazon.com began as an online bookstore that quickly diversified to an array of different products such as toys, VHS, music etc. This diversification has helped Amazon grow in the past two decades. When the dot-com bubble burst in the late 90’s investors were a bit skeptical in whether their business model would work. The company ended up proving skeptics wrong making their first annual profit in 2003 and since then have never looked back. The following chart shows the success and value of Amazons stock in the past five years:
A small part of this company’s success is the Make-On- Demand Department. There are six Make-On-Demands in the world including one in Lexington, Kentucky which will be described in the following document. MOD is unique in the sense that it is not like other departments in the warehouse because it actually deals with manufacturing. This department in particular deals with the making of books, DVD’s and CD’s; but this document will solely focus on the production of books from the beginning of production until they get out of the department and on the warehouse floor. The key factor with MOD is that it is the epitome of Just-In-Time inventory. This is great in a sense because we never have inventory sitting around that is costing us money. Customers can place their order and we will make the book in particular that they wanted and ship it out in the range of about a couple of hours. It is because of this type of system that MOD has been able to pick up business for the last several years. They have gone from having backlogs of 6000 in given day back in 2011 to backlogs over 30,000 in 2013. In the last year alone MOD has grown 60 percent and has had constant growth since its inception. Amazon does a great job at reaching all customers when it comes to the publishing market. They are able to meet the needs of the traditional book reader through MOD while realizing that there is a market for the e-book industry hence the introduction of the Kindle and its family of products. This shows that Amazon goes with trends seeing the fact that there is opportunity with e-readers. Another thing that is great for business is the fact that they allow a different range of publishers to create products; products range from textbooks made by major publications all the way to regular people who publish books for hobby. This creates a wide range of products for customers and can satisfy their every need. Problem Statement
The problem of this study deals with the issue of efficiency in the manufacturing workplace and by that the questioned will be asked “Does continuous improvement and focus on the customer help in the company in the long run?” Amazon is still a young company and with a young company comes a lot of learning. This study will be one of those learning experiences that will take MOD and hopefully the FC to better results. By the end of this document the reader will be able to see the financial results that this company receives as a result of continuous programs such as kaizens and the focus on customer satisfaction which are both definitely needed in an ever growing company. Results that will be talked about are return on investment capital, net income, cash flows, throughput, inventories and operating expenses. An overview of MOD and how it operates will show how the system operates. The reason for this is to get a taste of the constant change that Amazon strives for to get better results and try to reach the goal of a 10 percent year over year improvement in all aspects of the business. Then Amazon finance results will be looked as a whole and with that an explanation on the results. Purpose Statement
The purpose of this project will be to...