DO NOT USE ANSWER USED FOR EVERYONE

Gibson Guitars

Mike Gibson was walking around the empty building that would soon house his guitar factory. Accompanying him was an architect and the recently hired an Operation Director for his manufacturing shop.

A rock-and-roll virtuoso, Mike has been building custom guitars for his band for more than 20 years. On a break from those grinding world tours, Mike is launching a line of electric guitars. Rather than outsource production to Mexico or China, Mike has decided to hire his own team to produce the guitars.

During the building tour, Mike and his team discuss ideas for facility layout, production methods, and technology requirements.

How we set it up is a function of volume, variety, and product pricing, notes the Operation Director. We can go anywhere from master craftsmen making one guitar at a time to an automated production line cranking them out by the hundreds per day.

We are in this to make money so I cant sit in this huge space and make them one at a time, Mike replies. But, I dont want to produce a $300 guitar for the mass market. We want a great product that customers will see as an investment in a quality guitar that will last for decades.

A brief discussion ensues in which Mike shares his vision for selling three models in five stock colors. They will be sold through music stores. He also wants customers to have the option of configuring their own sound package and adding a custom paint job for a higher price. These semi-custom guitars will be sold via the companys website.

You also need to think about what part of the production will be done in-house versus outsourced, noted the architect. That will influence how I modify the building.

Mike adds if we want to do it right, we need to do the major work in-house. Cutting the bodies and necks, painting, assembly and testing will happen right here. We can purchase the humbuckers, strings, knobs, jacks, and other components from trusted suppliers.

Hmm, parts coming in from multiple suppliers, fifteen different combinations of guitars plus semi-custom orders, and serious manufacturing activity, the Operation Director recaps. I think that we will need some technology support to keep everything coordinated.

Thats why I hired youto make those important decisions, replies Mike. Remember were here to deliver stunning guitars that will launch the career of the next B.B. King, Keith Richards, or that guy called Slash.

As he walked toward the door, Mike adds: and, dont forget that we need profits. Tell me how you are going to measure our success.

Discussion items

Given the description of the product and the work that will occur in the guitar factory, which production process layouts could be considered? Which do you recommend? Explain.

What types of software should be used to help manage the scheduling and operations of the guitar factory? What benefits will they provide?

How should the Operation Director evaluate performance of the factory? Discuss the metrics that must be balanced to achieve Mikes goals.

What roles will product packaging play in the success of Mikes guitar company?

Gibson Guitars

Mike Gibson was walking around the empty building that would soon house his guitar factory. Accompanying him was an architect and the recently hired an Operation Director for his manufacturing shop.

A rock-and-roll virtuoso, Mike has been building custom guitars for his band for more than 20 years. On a break from those grinding world tours, Mike is launching a line of electric guitars. Rather than outsource production to Mexico or China, Mike has decided to hire his own team to produce the guitars.

During the building tour, Mike and his team discuss ideas for facility layout, production methods, and technology requirements.

How we set it up is a function of volume, variety, and product pricing, notes the Operation Director. We can go anywhere from master craftsmen making one guitar at a time to an automated production line cranking them out by the hundreds per day.

We are in this to make money so I cant sit in this huge space and make them one at a time, Mike replies. But, I dont want to produce a $300 guitar for the mass market. We want a great product that customers will see as an investment in a quality guitar that will last for decades.

A brief discussion ensues in which Mike shares his vision for selling three models in five stock colors. They will be sold through music stores. He also wants customers to have the option of configuring their own sound package and adding a custom paint job for a higher price. These semi-custom guitars will be sold via the companys website.

You also need to think about what part of the production will be done in-house versus outsourced, noted the architect. That will influence how I modify the building.

Mike adds if we want to do it right, we need to do the major work in-house. Cutting the bodies and necks, painting, assembly and testing will happen right here. We can purchase the humbuckers, strings, knobs, jacks, and other components from trusted suppliers.

Hmm, parts coming in from multiple suppliers, fifteen different combinations of guitars plus semi-custom orders, and serious manufacturing activity, the Operation Director recaps. I think that we will need some technology support to keep everything coordinated.

Thats why I hired youto make those important decisions, replies Mike. Remember were here to deliver stunning guitars that will launch the career of the next B.B. King, Keith Richards, or that guy called Slash.

As he walked toward the door, Mike adds: and, dont forget that we need profits. Tell me how you are going to measure our success.

Discussion items

Given the description of the product and the work that will occur in the guitar factory, which production process layouts could be considered? Which do you recommend? Explain.

What types of software should be used to help manage the scheduling and operations of the guitar factory? What benefits will they provide?

How should the Operation Director evaluate performance of the factory? Discuss the metrics that must be balanced to achieve Mikes goals.

What roles will product packaging play in the success of Mikes guitar company?