Terry Hill's Manufacturing Framework

Terry Hill's Manufacturing Framework
Jigsaws 'R' Us (JRU)
Products
Marketing Strategy
Markets
Marketing Strategy
Range
Marketing Strate...
Mix
Marketing Str...
Standardisation vs. Customisation
Marketing Strategy
Level of Innovation
Marketing Strategy
Leader vs. Follower
Marketing Strategy
Functional Support
Manufacturing Strategy (Infrastru...
Operations planning and control systems
Manufacturing Strategy (Infrastructure)
Work Structuring
Manufacturing Strategy (Infras...
Payment Systems
Manufacturing Strategy (Infrast...
Organisational Structure
Manufacturing Strategy (Infrastructure)
Jigsaws
Product Criteria
Order Winners
Quality
Speed to market
Branding
Order Qualifiers
Appeal/Packaging
Availability
Card Games
Product Criteria
Order Winners
Price
Order Qualifiers
Quality
Availability
Board Games
Product Criteria
Order Winners
Quality
Variety
Order Qualifiers
Speed to market
Survival
Business Objectives
Growth
Business Objectives
Profit
Business Objec...
ROI
Business Obj...
Process Technologies
Manufacturing Strategy (Structure)
Cardboard Jigsaws
Cutting
Printing
Laminating
Trim
Die-cut
Packing
Outsource - setup costs high, printing costs high (30p each)
Wooden Jigsaws
Cutting
Printing
Laminating
Fretsaw
Trim
Packing
Use waterjet cutters - automate the cutting process
Playtrays
Cutting
Printing
Laminating
Fretsaw
Attach Hardboard Backing
Drill hole + Hammer peg
Manual operation
Card Games
Make card
Cutting
Packing
Board Games
Cutting
Laminating
Packing
Add in plastic playing pieces
Outsource - core competency in card and wood, not plastics
Trade-offs embodied in process
Manufacturing Strategy (Structure)
Using waterjet cutters - efficiency and speed over personal touch
Role of Inventory
Manufacturing Strategy (Struct...
Inventory
Raw Materials
Cardboard
Imported from Sweden
12-week delivery
£30,000 (Wednesbury)
£25,000 (Coventry)
Beech Wood
Imported from Russia
3 thicknesses, 2 crates each
£20,000 stock held
Printed Materials (Card/Boards)
£77,000 (Wednesbury)
£41,000 (Coventry)
Boxes
Bought out from a number of suppliers
Value of top part (printed) high
10% - 20% of product cost
£39,000 (Wednesbury)
£62,000 (Coventry)
Backing paper
Work-in-Progress
£49,000 (Coventry)
£19,000 (Wednesbury)
Finished Stock
£516,000 (Wednesbury)
£435,000 (Coventry)
Stored in considerable quantities at all stages of the process
should be valued at 60% of the sales price
Capacity
Manufacturing Strategy ...
Wednesbury
Machines
Original Machine Lines
3 Guillotines
4 Diecutting machines
3 Shrink wrap machines
2 Final boxing/packing lines
3 Laminating Lines
Proposed Machine Lines
3 Guillotines
6 Diecutting machines
3 Shrink wrap machines
2 Final boxing/packing lines
3 Laminating Lines
Size
Manufacturing Area: 10,000 square feet
Offices: 2,500 square feet
Storage: 25,000 square feet
Products
Original Product Lines
Cardboard Jigsaws - 75 Products
Cards - 25 products
Board Games - 13 products
Proposed Product Lines
Cardboard Jigsaws - 104 products
Cards - 25 products
Coventry
Machines
1 Circular saw bench
2 Guillotines
2 Diecutting machines
2 Laminating lines
2 Shrink wrap lines
2 Final packing lines
10 Fretsaws
2 Drills
Size
Manufacturing Area: 10,000 square feet
Offices: 4000 square feet
Storage: 12,000 square feet
Coventry
Machines
Original Machine Lines
1 Circular saw bench
2 Guillotines
2 Diecutting machines
2 Laminating lines
2 Shrink wrap lines
2 Final packing lines
10 Fretsaws
2 Drills
New Machine Lines
1 Circular saw bench
2 Guillotines
2 Laminating lines
2 Shrink wrap lines
2 Final packing lines
3 Waterjet-cutting machines
2 Drills
Products
Original Product Lines
Wooden Jigsaws - 65 products
Cardboard Jigsaws - 39 products
Play Trays - 24 products
Proposed Product Lines
Wooden Jigsaws - 65 products
Play Trays - 24 products
Board games - 13 products
Size
Manufacturing Area: 10,000 square feet
Offices: 4000 square feet
Storage: 12,000 square feet
Timing
Product demand
25% sales from January to May
30% deliveries during September and October
Customers
Large
65% sales to large customers - standard orders 3 months in advance
Special products - customized, delivered in 4 months
Smaller orders between September to December - short notice for unexpected demand
Small
place orders to meet demand when it occurs
order size much smaller, more frequent
orders a mixture of products, not more than 20 per item
expect delivery within 3 weeks of order
Timing
Manufacturing Str...
Customers
Large
65% sales to large customers - standard orders 3 months in advance
Special products - customized, delivered in 4 months
Smaller orders between September to December - short notice for unexpected demand
Small
place orders to meet demand when it occurs
order size much smaller, more frequent
orders a mixture of products, not more than 20 per item
expect delivery within 3 weeks of order
Product demand
25% sales from January to May
30% deliveries during September and October
Corporate Strategy
To be a world-class manufacturer of models, game and toys by establishing a prestigious brand name
Outstanding quality
Delivered in a timely manner
Employee empowerment - increased contribution
Positive contribution to consumers' lifestyle
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