Custom Fabricators
Team 3
How does Ben Lawson’s Custom Fabricators, Inc.,
create value for Orleans?
• JIT and Lean Manufacturing systems for Orleans
• Custom Fabricators made special brackets and panels
• Very little lead time
• Very efficient process for fabricating exactly what the
plant needs
• Delivery of products on time
In the past what has been Ben Lawson’s competitive
advantage in keeping the Orleans business?
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Close proximity to the plant - greatest advantage
Site got easily don’t have to worry abt anythg
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Had to worry only about the lease on land
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Custom fabrication of each of the products and shipping them directly to their
site
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Orleans provided raw materials
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No need to go public with company
Self- certification
Good relationship with laborers
No unionisation
Smooth continuous production line
CONSISTENCY IN Delivry of high quality
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COMMUNICTN COST TRNSPORT COST BLOCKED
THIS COMP WHICH HE IS MAKING MAY B NEGLECTED BUT HE HAS
THE KNOWLEDGE WHICH NOBODY KNOWS NOT EVEN ORLEANS SO
HE CAN TRAIN MEXICANS
SINCE KNOWLEDGE, HE CAN COORDINATE +DIVERSIFY THE
PRODUCTION
TRYING TO LEVERAGE THE VALUE CHAIN
COPYING THE MEXICANS WILL BE A TOTAL FAILURE
FLEXIBILITY , RESPONSIVENESS,
Have Orleans' priorities changed ?
• They are going to reduce the costs associated with
elevators - labor and production costs
• They are going to auction for nearly $20 million worth
of raw materials and parts
• Outsourcing
Should Ben change his business model?
• Orleans is going for cost reduction
• Should try and reduce the number of employees
• Purchase more automated tools to fabricate the
required parts
• Procure raw materials by himself
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START MANUFACTURNG THE OUTSOURCED PARTS
WILL HAVE TO CUT DOWN PROFIT MARGINS BY 27% AND GET IT
REDUCED TO 3%
THE PROFIT MARGINS COULD BE INCREASED IN LONG RUN
ANALYSIS ON COST FEASIBILITY HAS TO BE DONE ON TAKING
How should Ben position his company in the value
chain?
• Focus on positives like close proximity
• Assurance of high quality
• Custom fabrication according to needs
• Focus on the trust built over the years
EXTENDING THE BUSINESS BY :
PROVIDING HIGH QUALITY PRODUCTS AT LOWER COST THUS BY ADDING VALUE.
JUST IN TIME DELIVERY
CREATING NEW SIES AT DIFFERENT PLACES.
What should Ben do to ensure his company’s future success?
• Bring down the cost of labor or reduce the number of
employees
• Ensure that the Mexican company does not take over
the business
• Try to procure raw materials from Mexican companies
at low rates
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SHOULD TRY TO REDUCE THE OVERALL COST OF PRODUCTION
SHUD TAKE COMPLETE ADVANTAGE OF THE PROXIMITY
EXTEND ITS BUSINESS BY NOT STICKING WITH ONE CUSTOMER
SHUD EXPAND BUSINESS BY BUILDING UP NEW SITES