10 critical decisions in OM

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Regal Marine questions TURTLES

10 critical decisions in OM (Regal Marine)

Design of goods and services

What good or service should we offer?

How should we design these products and services?

The company designs, manufactures and markets 22 different boats in a luxury category. The goal of the company related to the product is to provide value, quality and satisfaction to the customer.

Managing quality

How do we define quality?

Who is responsible for quality?

The product should be distinctive, that means that the product has features and benefits to stand out from other similar products.

Mainly the management is responsible for the quality. Usually managers make the decisions to achieve their goals. Another important item for quality is the communication and the

“team-spirit” within the company.

Process and capacity design

What process and what capacity will these products require?

What equipment and technology is necessary for these processes?

The company follows a differentiation strategy to persue its mission (differentiation-better, response-faster, cost leadership-cheaper).

Location strategy

Where should we put the facility?

On what criteria should we base the location decision?

The distributors should have the calibre to represent the product in a way which will sell in a market place. It is also an important question in which country the production will take place.

If the production gets outsourced in low- wage countries probably the quality decreases, which can have bad effects on the company image.

Layout strategy

How should we arrange the facility?

How large must the facility be to meet our plan?

Different models should be produced on different assembly lines in separate buildings. It is also important to have some alternate space to expand if there is a need for it. Furthermore the facility should be close to the suppliers of the company.

Human resources and job design

How do we provide a reasonable work environment?

How much can we expect our employees to produce?

It is important to let the employees participate in the success of the company. The management is committed to its employees in the same way how they are committed to the company. That means that they have to invest in its employees to raise the level of competence.

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Regal Marine questions TURTLES

Supply chain management

Should we make or buy this component?

Who are our suppliers and who can integrate into our e-commerce program?

Volvo Penta is a world-leading supplier of engines for marine and industrial applications and

Mercury is the world's largest manufacturer of marine propulsion engines. These two company are leading in quality in the respective market segments, that’s why these companies are the right suppliers for Ragal Marine to fullfill there quality needs.

Inventory, material requirements planning, and JIT

How much inventory of each item should we have?

When do we re-order?

Manufacturing organizations, whatever their products, face the same daily practical problem - that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required. Nowadays there are a lot of different software programs to plan inventory and material requirements.

Intermediate and short–term scheduling

Are we better off keeping people on the payroll during slowdowns?

Which jobs do we perform next?

Maintenance

Who is responsible for maintenance?

When do we do maintenance?

The different Regal dealers and the company itself are responsible for maintenance and warranty. RM has its own customer and warranity division, handling issues in the field for dealers and consumers alike.

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