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Custom Fabrications - Case Study. Abstract The abilities of companies to
outsource certain processes or tangibles can allow for more ...
Berger - Live Case Study for Managerial Policy (with various matrices ... of products,
many of which are custom-made to ... a wide range of metal fabrications which are ...
Submitted by mjboatm on April 28, 2008
Category: Miscellaneous
Words: 1306 | Pages: 6
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Abstract
The abilities of companies to outsource certain processes or tangibles can allow for more efficient and cost effective solutions, however, at times changing the vendors that they outsource to could have substantial impacts on internal process. Therefore, companies must be very careful to make sure when outsourcing that it does not cause more internal turmoil or hidden costs that than benefits which will be more costly in the end.
Custom Fabricators Inc - Case Study
This case study is an excellent example of a company’s attempt to increase its competitiveness by reevaluating its operating strategies and processes. Our reading states that “for a firm to remain competitive, all of the activities that make up the operations’ core must buttress the firm’s strategy” (Chase, Jacobs, & Aquilano, 2006, 42). This means that organizations must continually investigate changes in operating strategies that will enable them to utilize and integrate new technological innovations and productivity measures.
After doing business with Orleans Elevators since the late 1980s Ben Lawson, CEO of Custom Fabrications, Inc., is beginning to wander how much longer it will continue. Orleans originally started doing business with Custom Fabrications due to just-in-time and lean manufacturing initiatives and has since successfully built a strong working relationship with Orleans Elevator. Orleans outsources their fabrication needs of electrical panels and wiring harnesses for large elevators to Custom Fabrications. Over the years, Custom Fabrications and Orleans Elevators have established such a close relationship that “Orleans simply gives them the production schedule for elevators being shipped over the next month, and they make the required parts automatically” (Chase, Jacobs, & Aquilano, 2006, 45). Custom Fabrications manufactures the parts and ships them directly to the customer without Orleans even seeing the products....
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