The Wedgeys Inc. Claudia Garcia, Nadia Guerrero, Alex Kollaritsch.
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Transcript of The Wedgeys Inc. Claudia Garcia, Nadia Guerrero, Alex Kollaritsch.
The WedgeyThe purchase of one
Wedgey golf club includes:
• One grip
• Four extenders for shaft
• One golf club head
• Optional customized grip
Core Competencies
Strong research and development team
Recyclable materials for production purposes
Use of graphite and stainless steel
Customization of grips
Factors Relevant to Location Decision
Proximity to customers – 30%
Proximity to source of supply – 18%
Proximity to sources of labor, expertise, etc. – 18%
Site considerations – 15%
Community considerations – 10%
Quality of life issues – 9%
Location Options
Atlanta, GA
Space: 27,500 SF
Rental Rate: $10.83 Per Square Foot Per Year
Total: $297,825.00
San Marcos, TX
Space: 20,205 SF
Rental Rate: $9.90 Per Square
Foot Per Year
Total: $200,029.50
Las Vegas, NV
Space: 26,000 SF
Rental Rate: $11.23 Per Square Foot Per Year
Total: $291,980.00
Factor Rating Diagram
Location Ranks Location Scores
Factor Weight
Atlanta
Las Vegas
San Marcos
Atlanta
Las Vegas
San Marcos
Proximity to customers 30 3 4 5 90 120 150
Proximity to sources of
supply18 2 3 3 36 54 54
Proximity to sources of
labor, expertise,
etc.
18 4 3 4 72 54 72
Site Consideration
s15 3 2 3 45 30 45
Community Consideration
s10 3 2 4 30 20 40
Quality of life issues 9 4 3 4 36 27 36
Total: 309 275 397
Pre-Production Services
Online custom web order Custom grip
Golf club design and testing
Sales and marketing team Advertisement, social media, demos, etc.
Cross-train workers Quality built from the bottom up
Supplier agreements
Post-Production Services
Recycling program Return of used Wedgey golf clubs to be recycled for future
manufacturing Customers that utilize program will receive 10% off next
Wedgey purchase
30-day money back guarantee
Lifetime warranty (manufacturer defect)
Technical support (web and phone)
Instruction manual Printed manual included with purchase Online video tutorials
Supply Chain
Customers
Retailers: Big 5, Academy, Sports Authority, Dicks Sporting Goods
Wedgey Manufacturing
FacilitySan Marcos, TX
Thermon Corp. Graphite supplier San Marcos, TX
TAD Metals Steel supplier San Marcos, TX
Capital City Upholstery
Supply Rubber supplier Austin,
TX
3rd party logistics (UPS) will handle delivery between Manufacturer and
retailer Manufacturer and
customer (custom orders only)
Supply Chain Effects on Location Decision
Limiting transportation costs
Increasing throughput
Close to 3 cities with good golfing communities
Raw material suppliers within 30-mile radius
Manufacturing Process
Hybrid Manufacturing Process
Process layout for grips Grips are made based on design chosen by
customer
Product Line – repetitive and sequential Shafts Extenders Club heads
Facility Dimensions
Facility Area Space Required (square feet)
Shipping and Receiving 1,000
Club Head Casting and Assembly line area 9,100
Extenders and Shafts 2,250
Custom Grip Orders 2,200
Accounting 350
Research & Development 725
Purchasing 350
Sales 850
Break Room 900
Ladies Restroom 340
Men’s Restroom 340
Supervisor Office 450
Storage Room 1,350
Total 20,205
1. Raw Materials are
received
2. Stainless steel is
molded in machines for club heads
3. Extenders are made
4. Shafts are formed, then sanded, cut, and painted
5. Custom grips are placed in
shafts
6. Shaft, extenders
and head are attached,
coated and packaged
Output
3 minutes for club head casting
30 seconds to make extenders
4 minutes to make shafts
2 minute for custom order grips
30 seconds to take to assembly line
1 minute for assembly
1 minute for quality inspection
12 minutes to make one golf club. 5 units/ hr
Overall Output
270 working days
8 hour workdays
20% Safety capacity
5 units/hr.
40 units/day
Forecasted output: 10,679 Theoretical: 10,800
The plant capacity is 48 units per day yielding 12,960 units a year, allowing 20% safety capacity
Just-In-Time
Improving quality Quality at the source, provide immediate
feedback, Jidoka
Eliminating waste Utilize safety capacity, eliminate waiting time,
employ a pull system
Respect for all people Cross-functional skills, decisions made from
bottom up, flexible with breaks and holidays
“Team” Approach
Production team made up of delegates from different steps in production process Shipping and receiving, club head, extenders, shafts,
custom grips, and club assembly line
Sales and marketing team
Customer service team
Research and development team
Representative of each team reports to administrative team daily
“Team” Approach
Bottom up decision making is promoted
Using JIT method, workers inspect their own work