Custom Molds is a design & fabricator of precision molds and molds part for the electronic industry. The company has to face an environmental change when the electronic industry began to have partnership with parts suppliers.
On a short term, Custom Molds is not able to satisfy its customers by having a high quality custom product: there was orders returned because of defective parts; and Custom Molds is also not able to respect it’s delivery time to customers. Although the number of parts orders has remained virtually constant, the volume per order has increased during the last 3 years. Consequences are it has created a bottleneck and has led to late deliveries to customers. On a long term, Custom Molds will lose its competitive advantage and its reputation because the processes that the company has doesn’t fit anymore the situation of its industry.
The major issues of this case are:
* Changing strategies within Custom Molds’s clients, which changed order needs in an unexpected way. * The time between product order and product received by customer is much longer than promised. * More products defective.
* Bottleneck in production; worse is that they can’t predict where, when or why.
Alternatives: what should a manager consider?
As a manager, he should consider the 4 main issues: time, defective product and bottleneck in production. The company can reduce its time, by reducing the back and forth relation between engineers, managers and customers. Even if it’s a customize process, this take too much time. If there is so much of back & forth it might be because of a lack of efficient communication between the parties. For the molds process, changes need to be made. The process needs a flexible flow strategy make small batches of many different designs short run but on many different machinery. This will answer the needs of customers by a lot of designs and customize product....