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Four Star Case study analysis
Transcript of Four Star Case study analysis
Design - Stop the custom manufacturing (or for a surcharge)
- Offer "standardized" products at lower
- Offer discounts for orders made well in advance Case Study Analysis
Kim Knape Ways to reconfigure Order Fulfillment Changing the product design and manufacturing is a good start but...
Four Star must change their order fulfillment to realize the benefits! - Brought on by increased competition
- Led to:
Increased complexities in the production process
Increased inventory costs
Order fulfillment problems
- Effected the entire supply chain Impact of proliferation Four Star Industries
- A decades old mattress manufacturer in Singapore
- Aims to be the leader in innovation of bedding technology, by focusing on
quality and productivity
- First to manufacture:
Pocketed spring mattresses in Singapore
Feathered pocketed spring mattresses
- The experience of the customers is of utmost importance: Four Star assures that "the customer wakes up feeling fully rested and revitalized"
- Now having severe operational troubles, with losses over the last few years... Order fulfillment difficulties
- Costs and complexities caused by increase in the number of models and changes in the marketplace
- Inventory -, production complications - and costs increases
- No effective information sharing
- No MOQ
- Competition Problems Faced by Four Star A fundamentally good product that meets customer expectations is made, but..
The number of model designs should be reduced
The number of gauge thicknesses
The variety of quilts
The number of foam thicknesses Ways to reconfigure product design Moreover... Move away from tiny batches towards larger batches
- Decreasing the number of models will help but it requires order planning and JIT manufacturing
- Increase the number of quality check points Ways to reconfigure manufacturing Resources Before Four Star start the modifications
They need to understand what the retailers and customers want and need
- Surveys and interviews are effective Sia Meng's Ideas Move to a responsive, but cost efficient operations model
1. Reduce the number of models to 1996/1998 levels
2. MOQ for dealers
3. Reduce safety stock for finished mattresses
4. Relocate manufacturing
Sounds more like desires than courses of action - not all are feasible. All of them require that other actions are taken in conjunction with them and good communication is required Recommendations! The future - Huge room for improvement
- Unchanged practices will lead to bankruptcy
- Need to understand the customer
- Changes will lead to lower costs and increased sales Communication