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Four Star Case study analysis

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by

Kim Knape

on 10 April 2013

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Transcript of Four Star Case study analysis

Ways to reconfigure Order Fulfillment Understand the customer! Production Order fulfillment Product
Design - Stop the custom manufacturing (or for a surcharge)
- Offer "standardized" products at lower
prices
- Offer discounts for orders made well in advance Case Study Analysis
Tryggvi Benediktsson
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
Anti-static mattresses
Anti-bedbug mattresses
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
Thereby reduce:
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
Full transcript