Case: Custom Fabricators. Inc. – from Lean Manufacturing Partner to

Topics: Strategic management, Material, Materials Pages: 3 (770 words) Published: June 19, 2008
1. How does Ben Lawson’s Custom Fabricators, Inc., create value for Orleans?
Custom Fabricators Inc. has a very companionable relationship to Orleans. Orleans Elevator is a subsidiary of United Technologies and provides Custom Fabricators Inc. with a monthly schedule of their products and these are produced by order and delivered either to the nearby Orleans plant site or directly to the construction location. Custom Fabricators Inc. creates value for Orleans by delivering quality and great service with the speed, reliability and flexibility of the manufactured items they produce. Most of the manufacturing business is done with Orleans. Because of Orleans purchasing the raw materials, costs for Custom Fabricators is limited to land lease, the plant, equipment and employee costs. This leads to a stable revenue margin of approximately 30 percent. This economic wealth of Custom Fabricators is being shared with their loyal employees who increased productivity as business increased. Because of their high employee satisfaction the company’s reputation to produce quality products and deliver on time has enhanced.

2. In the past, what has been Ben Lawson’s competitive advantage in keeping the Orleans business?
By having a close relationship with Orleans, Custom Fabricators Inc. has been able to maintain their competitive advantage. Custom Fabricators understands the business and is able to provide the exact products whenever they are needed and Orleans can depend on the quality and the service provided to successfully achieve their goals in completing elevator contracts. Also their location has gained them a big competitive advantage and helped them in being the primary supplier for Orleans Elevator. Newly Orleans has included Ben Lawson in their search to find new suppliers for raw materials. To...
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