MANUFACTURING AND SERVICE PROCESSES: LOGANVILLE WINDOW TREATMENTS
MANUFACTURING AND SERVICE PROCESSES: LOGANVILLE WINDOW TREATMENTS
Order Description
only the first question
Provide a five‐sentence summary for the case (the company and the problem it faces) not exceeding 70 words. and please find the attachment for more information
MANUFACT
M
TURING AN
ND SERVIC
CE PROCESSSES: LOGA
ANVILLE W
WINDOW
TREEATMENTSS
Introduction
For nearlyy 50 years, Lo
oganville Wind
dow Treatme
ents (LWT) of Loganville, G
Georgia, has m
made interior
shutters tthat are sold tthrough deco
orating centerrs. The figure below showss some of thee various stylees of
shutters LLWT makes.
Past Man
nufacturing and Service
e Operationss: 2011
Traditionaally, LWT supported a limitted mix of staandard produucts. At any particular poin
nt in time, thee mix
of produccts might conssist of 6 differrent styles offered in 5 preedetermined sizes, resultin
ng in 30 possible
end produ
ucts. LWT wo
ould produce each of these
e end productts in batches of 500 to 1,0
000 (dependin
ng on
the popularity of each style/size com
mbination) an
nd hold the fifinished produ
ucts in the plaant warehousse.
When a decorating cen
nter called in with an orde
er, LWT wouldd either meett the order fro
om the finished
goods invventory or holld the order tto be shipped when the neext batch wass finished.
LWT’s pro
oducts were ssold through iindependent decorating ceenters locateed across the United Statess and
Canada. LLWT would se
end each of th
hese decorating centers a copy of its caatalog, and th
he decorating
centers w
would use thesse catalogs to
o market LWTT’s products tto potential customers. It w
was the
responsib
bility of the de
ecorating centers to work with customeers to price out the shutteers, make suree the
correct sizze and style w
were ordered from LWT, and resolve anny problems. As a result, LLWT almost never
dealt directly with the final custome
ers.
Manufaccturing and SService Operations: 201
12
By 2011, tthe influx of low‐cost shutters made in China had foorced LWT to reconsider itss business mo
odel.
Specifically, because of the low labo
or costs in China (1/15 of LLWT’s labor ccosts), Chinese manufacturers
products for substantially l ess and hold them in wareehouses across
could makke exact copies of LWT’s p
the United States and Canada. LWT’s traditional customers—the decorating centers—were turning
more and more to these alternative sources.
LWT decided to fight back. As Chuck Keown, president of LWT, put it:
The only permanent advantage that we have over our Chinese competitors is that we are located here in
the United States, closer to the final customer. So from now on, we will be a process focus manufacturer.
We will deal directly with customers and make shutters to whatever specific measurements and finish
they need. This means we can no longer count on producing batches of 500 to 1,000 shutters at a time
and holding them in inventory. Rather, we will need to be able to make a few at a time in one‐off sizes, if
that’s what the customer needs.
On the service and marketing side of the house, we will now take orders directly from the customer. We
will reach them through the Internet and through catalogs. We will work with them to determine what
style best suits their needs, and to take the measurements needed to make the shutters. When there is a
problem, we will work directly with the customer to resolve them.
Yes, this will require dramatic changes to our business. But it also means we will be able to charge a
premium for our products and create a relationship with the customers that our Chinese rivals will find
difficult to emulate. As I see it, this is the only way we can survive.
Questions
1. Provide a five‐sentence summary for the case (the company and the problem it faces) not
exceeding 70 words.
2. How is the case related to each of the ten chapters we studied in this course? (“Not related”
may be the best answer for some chapters)
3. Why is this company likely to change its mission?
4. Chuck Keown, president of LWT, is about to make a major decision for his company:
a. What is this decision?
b. How will it affect its strategy for competitive advantage?
5. Develop a list of five things (related to activities and resources) that must happen in order to
accomplish the changes Chuck Keown envisions.
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