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GROUP MEMBERS:
Pantea Fotouhi (GM04672)
Somayeh Rezaei (GM04675)
Nasim Zaeri (GM04649)
M. Mahdi Mesbahi (GM04701)
Operation Management (GSM5113)
Lecturer: Dr. Murali
CUSTOM MOLDS, INC.
Introduction
1987Custom Molds, Inc. was founded by Tom & Mason Miller
ReputationDesigner & Fabricator of precision molds
AimsCustom design molds for manufacture of electronic connectors
12
3
Introduction
45
6
1990sExpanded into manufacture of plastic parts + business trends moving toward strategic partnerships with suppliers
AimsFocus in high quality and custom design mold and limited manufacture of plastic parts
ReputationGrowing reputation of being a supplier of high-quality plastic parts
Introduction
78
9
2000sFurther expansions & operations managed in 2 distinct but linked processes:
Fabricating MoldsManufacturing Plastic Parts
ReputationDesigner & fabricator of precision molds, as well as a supplier of high-quality plastic parts
AimsFocus in high quality and custom design mold and manufacture of plastic parts
Introduction
Recent YearsChanging environment of electric industry impacts
both business and manufacturing process of Custom
Mold, Inc.
10
Introduction
Customer Relationship
Getting Order(0 day)
Design(21 day)
Purchase Row Material(28 day)
Fabrication(28 day)
Test(1 day)
Packing and Sending(1 day)
Mold Process
Introduction
Getting Order(0 day)
Purchase Row Material
(7 day)
Dry Mix
(0 .5 day)
Wet Mix
(0.5 day)
Injection
(7 day)
Cut and Trim
(1 day)
Test
(1 day)
Packing and Sending(1 day)
Plastic Part ProcessProduced Mold
Question 1
What are themajor issues facingTom and Masson Miller?
Question 1
Major Problems:
•Increasing the order delivery time from three to four
or five weeks (delay)
•Increasing the number of defective parts
Question 1
Business Strategy:Mold Orders
Order Size2006 2007 2008
Number of orders Number of orders Number of orders1 80 74 722 60 70 753 40 51 554 5 6 55 3 5 46 4 8 57 2 0 18 10 6 49 11 8 5
10 15 10 5total 230 238 231
Question 1
Business Strategy:Plastic Part Orders
Order Size2006 2007 2008
Number of orders
Number of production
Number of orders
Number of production
Number of orders
Number of production
50 100 5000 93 4650 70 3500100 70 7000 72 7200 65 6500150 40 6000 30 4500 35 5250200 36 7200 34 6800 38 7600250 25 6250 27 6750 25 6250500 10 5000 12 6000 14 7000750 1 750 3 2250 5 3750
1000 2 2000 2 2000 8 80003000 1 3000 4 12000 9 270005000 1 5000 3 15000 8 40000Total 286 47200 280 67150 277 114850
Question 1
Manufacturing Process:
Process Molds Plastic Parts
Volume Low High
Flexibility High Low
Complexity High Low
Customization High Low
Consumer Involvement High Low
Project Mass Production
Question 1
Some Causes:
•Design: this activity takes too long, of course
customer relationship is very important, but idea
clarification can reduce time consuming.
•Purchase row materials: this activity also is time
consume. They can decline the process time by a good
purchase planning.
Question 1
•Mold fabrication: this process itself takes just three to
five days whereas, because of bad planning this
activity may take four weeks.
•Testing: high volume of defective parts shows the
weak testing activity
Some Causes:
Question 2
What are the competitive priorities for custom molds processes and the changing nature of the industry?
Question 2
2006 2007 2008200
220
240
260
280
300
Number of Orders
Mold Orders Plastic Part Orders
Num
ber o
f Ord
ers
Question 2Competitive Priorities of the fabrication process:
•Quality
• Cost
• Lead-time
• Flexibility
Question 2Competitive Priorities of the plastic part:
•Quality
• Cost
• Lead-time
• Flexibility
Question 2Changing the Nature of the Industry:
It needs have changed for both processes in mold fabrication, there is
a need to make very small batches of many different design. in parts
fabrication, there is a need to make large
batches of the same design, longer runs
on the same settings. The demand for
production of molds is slowly declining
while the demand for parts is increasing.
Question 3
What alternatives might be Millers pursue? What key factors should they consider as they evaluate these alternatives?
•Short term to resolve day-to-day
operational problems that would make
immediate performance improvements
•Medium-term decisions require more in-
depth change and it would be more costly
•Long-term strategic operational decisions
which require tight integration with
organization’s objectives
Question 3
Alternatives:
•Improve scheduling to reduce operating and
delivery time
•Using software Programmed
•Improving supplier relationship to reduce the
time of receiving materials
•Designate quality supervisor in charge of mold
fabrication
•More oversight on testing and inspection
•Separate the master machinist from the designer
•Forecast the future orders and needed row materials
Question 3
Short Term Alternatives:
•focus on the supplier relationship
through supply chain management
• methodologies.
•Reorganize plant layout and
processes
•Focus on machinery and invest in
buying the new machinery
Question 3
Medium Term Alternatives:
•Updating the mission and goals of
the company
•Invest in new equipments or even
new firm
•Invest in R&D
Question 3
Long Term Alternatives:
Question 3
Rearrange Layout:Receiving Row Materials
Inventory
Lunch Room
Packing and Shipping
Cut and TrimDry Mix
Testing and Inspection
Wet Mix
Injection Machines
Assembly
Mold Fabrication
Offices
Curr
ent L
ayou
t
Question 3
Rearrange Layout:
Prop
osed
Lay
out
Offices
Receiving Row Materials Inventory
Mold FabricationDry Mix
Wet Mix Injection Machines
Cut and TrimTesting andInspection
Packing andShipping
Lunch Room
Assembly
