For nearly 50 years, Loganville Window Treatments (LWT) of Loganville, Georgia, has made interior shutters that are sold through decorating centers. Figure 3.20 shows some of the various styles of shutters LWT makes.
Traditionally, LWT supported a limited mix of standard products. At any particular point in time, the mix of products might consist of 6 different styles offered in 5 predetermined sizes, resulting in 30 possible end products. LWT would produce each of these end products in batches of 500 to 1,000 (depending on the popularity of each style/size combination) and hold the finished products in the plant warehouse. When a decorating center called in with an order, LWT would either meet the order from the finished goods inventory or hold the order to be shipped when the next batchs was finished.
1. As of 2011, what type of manufacturing process did LWT appear to be using? What level of customization was it offering? Where was the point of customization?
2. Using Table 3.2 and Figure 3.12 as guides, how would you describe the service side of LWT's business prior to 2012? What were the managerial challenges?
3. What type of manufacturing process is needed to support the changes proposed by Chuck Keown? What level of customization will LWT be offering? Where will the point of customization be?
4. Using Table 3.2 and Figure 3.12 as guides, how will the service side of the house change in 2012? What will the new managerial challenges be?
5. Develop a list of 8 to 10 things that must happen in order to accomplish the changes Chuck Keown envisions. Will the new business model be more or less difficult to manage than the old one? Justify your answer.