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War Eagle Golf Ltd (WEGL), the producer of cheap copycat golf drivers, is facing difficulties with demand. After presenting its product at the World Golf Expo, the managers received valuable feedback from experts saying that, to get along with the competition, WEGL should customize its production. This decision will increase interest and demand and make prices 30% higher. Therefore, the new production strategy should focus on the customization of products while also shifting from the make-to-stock (MTS) assembly process. This paper will discuss how WEGL should change its production to have higher product demand.
Importantly, the current MTS assembly process is not suited well to Thompson’s new strategy of making semi-customized golf clubs. Therefore, the on-demand assembly option should be considered, that is, abandoning the push strategy and working with direct orders. This means that the production process will change tactically, although there is no need to outsource production. Instead of outsourcing, Butch Pearl can develop a rough plan of future work schedules and distribution of roles between employees, with possible training to better understand the new work processes. Outsourcing production entirely is a bad idea because it will be too expensive for the company to make a profit on sales, as Mr. Thompson hopes that the costs will not change significantly while the price for customers can be increased.
The production strategy will focus on customized products manufactured after the customers have placed orders for chosen product types. This will require optimization in assembly processes regarding human resource management, enhanced customer delivery logistics, and enhanced cooperation with supply chains. The technology needs will likely remain the same with minimal customization; IoT programs will be beneficial to improve supply and delivery (Brous et al., 2020). The benefits of the proposal include making customized products on time and on demand; potential drawbacks are increased spending on training and increased workload for employees.
Thus, the changes in the production for WEGL aimed at higher demand were discussed. Mr. Butch Pearl should make changes to the assembly, and delivery, and work with suppliers. The new processes should consider optimal HR management and training practices, and the introduction of IT technologies such as IoT to enhance logistics. There is no need for manufacturing outsourcing since the changes will affect human labor, logistics, and product management processes.
Reference
Brous, P., Janssen, M., & Herder, P. (2020). The dual effects of the Internet of Things (IoT): A systematic review of the benefits and risks of IoT adoption by organizations. International Journal of Information Management, 5(1), 1-12.
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