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| Write-up of the watch case # you: Sport Obermeyer| | Case discussion questions 1 . What is the business lead time for creation of skiwear? What are the factors that contribute to business lead times staying so long? Exactly what are the functional and competitive results of such long business lead times? The lead time for production of skiwear is 10 months from Obermeyer places the first production order with Obersport coming from Nov 80 (order’s placement) to completed goods are delivered to retailers for 93-94 line in Aug 93 (order’s receipt), taking contact form Table 2-14, “Raw Material Sourcing and Production paragraph in web page 69, and Table 2-15.

The elements that contribute to lead time being so long would be the following: 5. The long lead times during the nonstandards zip fasteners made in The japanese (? 90 days).

5. The long lead times during the dyeing subcontractors (45-60 days). * The long business lead times of stamping subcontractors (45-50 days). 2. The obtainable capacity for full-scale production could possibly be improved (Sport Obermeyer creates near to 200, 000 devices each year, the maximum production potential at all factories for trimming and regular sewing is 31, 000 units per month: it takes around several months).

These types of long business lead times have got negative functional and competitive results because if the time in raw material sourcing and production levels was reduced, Sport Obermeyer could boats all of usana products from China simply by ship rather than by aircraft before the available quota permitted by Usa government just for this product category being completely used. Of course , the lowering of these costs would give a competitive edge to Sport Obermeyer as the product cost could be reduced. 2 .

The business has just noticed that they can use differences in individual forecasts made by members of the shopping for committee to estimate the standard deviation of demand for different products, styles, and colors. Exactly how are they capable of use this details to make better production decisions? Wally would the data collection and examination for the forecast and demand coming from previous 12 months, he located that the standard deviation through the demand was almost 2 times the standard change of Buying Panel forecasts. 3.

Aside from making better utilization of available data, what other operational changes may you recommend Wally to further improve performance? Raise the operational convenience of cutting and sewing in the full-scale production, because presently they are producing 30, 500 units each month. The new manufacturer located in Lo Village could be establish with a brand new focus training the workers to enhance their production skills, buying a similar level than Hong Kong, for example: applying SOP (Standard operating procedure). 4.

Precisely what are the pros and cons about producing in Hong Kong? In China? How does this finding strengthen these people competitively? How exactly does it deteriorate them? | Pros| Cons| Competitively*| | | | Strengthen| Weaken| Hong Kong | * Staff worked fifty percent faster than Chinese counterparts. * More expensive | 2. Wages of manpower can be higher. | * Differentiation is comparatively easier to get| * The fee leadership is usually harder to get since is more expensive| China| * Wages in China were much lower within Hong Kong. 2. Longer creation lines in China generated greater imbalance in lines 5. Problems related with quality and reliability from the operations| 5. Cost command is comparatively easier to comes from the point of human resources| * Cost leadership is weaken mainly because operative costs related to discrepancy in lines| * Located in competitive tactics proposed by Michael Porter. | your five.

Using the test data succumbed Table 2-20, make a recommendation intended for how a large number of units of every style Wally should generate during the preliminary phase of production. Imagine all of the 15 styles inside the sample trouble are made in Hong Kong and that Wally’s primary production dedication must be at least twelve, 000 models. (Ignore selling price differences between styles in the initial analysis. ) As a result of comparing diverse kind of specific forecast the sequence for the standard change we separated the demand of the products.

For instance , A, M, C kind of products, like A is the most well-known product, N is the typical demand, C is the items with low demand. In order to focus to fix the problem of frequently be depleted of the most well-known items. 6. How ought to Obermeyer administration think (both short-term and long-term) about sourcing in Honk Kong versus Chinese suppliers? Objective: Competitiveness (Cost leadership and differentiation).

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