With the constant change in demand, businesses must consistently review various strategies, customer needs and core competencies to determine all are in align with the company purpose and mission. Manufacturing companies are endeavoring to be order winners in the various markets today. They must differentiate between the competition and core competencies in a very challenging economy.
Custom Fabricators, Inc has been the primary manufacturing company for Orleans Elevator since the late 1980’s. This partnership with Orleans began with manufacturing the control panels for elevators. Now with the concept of outsourcing, the manufacturing company provides more than just parts, they provide whole subassemblies, entire control panels and elevator motor housings.
The CEO, Ben Lawson, advises he “was in the right place at the right time when Orleans got into just-in-time and lean manufacturing” (Chase, Jacobs and Aquilano, 2006, p. 45). Just-in-time manufacturing is the methodology which dictates that resources, labor, parts and equipment are produced as needed and in the quantities required. This insures that Orleans gets their exact items at the correct location when needed. With this system, there is no need to stock inventory, which would assess costs to the company. This philosophy provides for the elimination of waste, and increases productivity, performance and quality while reducing costs (Heizer and Render, 2007, p. 201).
The partnership between both companies has been very companionable. Orleans Elevator, a subsidiary of United Technologies, provides Custom Fabricators with a monthly schedule and all products are made to order and delivered either to the nearby Orleans plant site or directly to the construction location. Custom Fabricators creates value for Orleans by delivering quality and great service with the speed, reliability and flexibility of the manufactured items they produce.
Custom Fabricators, Inc does
References: Chase, R., Jacobs, F., Aquilano, N. (2006). Operations Management for Competitive Advantage (11th ed). New York, NY: McGraw-Hill. Heizer, J. and Render B. (2007). Principle of Operations Management (6th ed). Upper Saddle River, NJ: Prentice Hall.