Case study 2 - Early learning games Early learning games began producing and selling indoor and outdoor kids games in 1990. Since then, senior managers focused on delivering quality and innovative products making Early learning games one of the best-known companies in this sector. However, in the last six years, sales reports have evidenced low sales compared with the same period on the previous year. The Production Manager (James Hopkin) attributed these low sales to "state of the economy". James was appointed to address low sales by: ) laying-off employees, mainly from the product design department; and (ii) cutting production costs. James thinks these decisions would result in an increase in profits within the next seven months. The Vice President of Sales (Joe Martin) noted that customer complaints regarding the "Realistie Games" line of working-model factories, farms, and service stations had increased and that parts for certain types of games have failed to operate properly. To resolve this issue, James's assistant (Brad Stone) suggested a new investment-program in which defective goods could be replaced for customers for free. Brad thinks that this will express goodwill and increase customer satisfaction. In addition, Brad. suggested repairing and reselling these defective items at cheaper prices in the company's retail outlet store. He hereby believes that this approach would not dilute revenue from the sales of new models. A new member of staff would be required to lead this initiative and current production staff would repair faulty models during the off-season period, which will keep the production level stable but improve labour productivity. Kate Brosney (an assistant within the production dept.) suggests further investment in the inspection process of finished models before they leave the factory. She believes that 100% inspection rates would prevent any faulty finished models from being shipped to customers and therefore solving this problem entirely. Questions: (50 marks) IQI| Describe Early learning games' competitive strategy and discuss how its operational strategy should support it? (10 marks) 1Q2] Use the appropriate process improvement tool to analyse the Early learning games problem(s) (20 marks) 103] If the CEO sought your advice as a consultant to address their problems, what would your advice be by wearing the lean philosophy hat? (20 marks)