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Carcar City College

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CASE STUDY:
Lawn King, Inc.: Sales and Operations Planning

CONTEMPORARY WORLD
Subject

Submitted by:

Rufa Mae A. Añasco

Leader

Members:
Rojas Chiclette
Rosales Lenne Mae
Oamilda Norma
Canoy Louie
Canasa Jessa Mae
Alesna Emelyn
Miranda Frandelene
Barawidan Dennisa

MR. JONREIL S. TRAYA, LPT

Instructor
FACTS OF THE CASE

The manager of Lawn King Company who is John Conner looked over the

beautiful country side as he drove to the corporate headquarters in Moline, Illinois. He

asked his boss, Kathy Wayne the general manager of Lawn King Company to call a

meeting in order to review the latest forecast for fiscal year 2015. Other members that

are attending the meeting are James Fair day, plant manager; Joan Peterson, controller;

and Harold Pinter, personal officer. As the meeting goes by, John started reviewing the

latest situation. He thinks they lost more sales and they also reviewed about the units of

sales that 110,000 units in fiscal year 2015. James Fair day said that three months ago

they all sat at the same room and predicted that sales of ‘15 are 98,000 units. So 12

percent added to what unit they've predicted. Kathy said also that they really have to be

responsive to the said changing market conditions.

Manufacturing Process

Lawn King Company is a medium-sized producer of lawn mower equipment. Last

year their sales were $14.5 million and pretax profits were $2 million. The company

makes four lines of lawn mowers: an 18-inch push mower, a 20- inch push mower, a 20-

inch self-propelled mower, and a 22-inch deluxe self-propelled mower. Since there is a

changeover cost of their production in which type of mower is being produced and

another production model planned somewhat like a 20-inch push mower to the 20-inch

self-propelled mower. The self profelled mower has a propulsion unit added and a

slightly larger engine. Fabricate parts of the mower which are the metal frames and

metal parts are sent to assembly line along with parts purchased directly from vendors.
In the past year, approximately $8 million in parts and supplies were purchased includes

engines bolts, paint, wheels, and sheet still. An inventory of $1 million in purchased

parts that is held to supply the machine stop and the assembly line. A total of 100

employees work at the main plant in Moline. These employees include 60 workers on

the assembly line, 25 workers in the machine shop, 10 maintenance workers, and 5

office staff. An assembly line worker is paid $10.15 per hour plus $2.90 an hour in

benefits. Senior maintenance and machine shop employees earn as much as $17 per

hour. Since $42,000 is a total training cost of the company then 50 percent of

employees left because of the said matter. There is also the so called considerable

absenteeism on Mondays and Fridays that causes six fillers are kept on the workforce

to fill in for the people who are absent on a given day. These fillers also help train the

new employees when they are not needed for direct production.

DEFINITION OF PROBLEM

Lawn King Incorporation is a manufacturer of Lawn Mowers. Lawn Mowers are

machines with one or more blades that are used to cut lawns at an even level. The

Lawn King Incorporation has several versions of their Lawn Mower that range from 18'

to 22' decks. Due to increased demand for Lawn Mowers, the Lawn King Incorporation

has seen an increase in sales. The current shift in demand threw the company off

because they we're not prepared for the surge of the market shift. This surge caused

the Lawn King Incorporation to have product shortages which lost them money in the

long run. In order to keep up with this booming demand, the Lawn Kings needs to
develop a more efficient model that allows them to address the issue with product

shortages.

The problems of the case are decreasing of the sales, changing of market

conditions, service, products, employees, expenses and marketing strategy.

Unfortunately the sales of their products decreases compared to the previous total sales

it is because there is a changing of market conditions. Customers return their products

because they are not satisfied by the service of the company. They are suffering this

kind of problem because maybe they don't have enough idea on how to minimize their

expenses. They must also create an effective marketing strategy and choose

employees that is willing to help to the development of the company.

ALTERNATIVE COURSES OF ACTION

The company must be aware to the problem of its production sales; they must hire

a set of employee to make their products, in order to meet their goals in manufacturing.

They must provide good quality products to attain the satisfaction of the customers, and

to avoid of complaining about the back orders. They must have sufficient materials that

are being use for their production with a less cost but has a good quality to avoid high

expenses of the company. Focus on open technologies that it will be a big help for the

company cause open technologies are distributed for free, this will get the attention from

the larger public. Promote in other countries to garner more sectors in other

market ,they should advertise it to the other countries. And lastly, they must target the
customer's need in a specific time most specially for the peak season for them to be

able to produce a lot of mower.

BEST ALTERNATIVE COURSE OF ACTION

The Production planning shows the actual sales. These states that not only sales

are highly in seasonal but the total sales are dependent on the weather. If the weather

is good in early-spring the costumers inclined to buy a mower. In production planning

shows the strategic type of planning, It consider the advance factor of the possible

outcome of the product. It stated that the costumers are more likely to buy the high-

priced self-propelled mowers. In this planning it describe the level of workforce strategy

in the overtime used that shows in exhibit 3.In the exhibit 4 it shows the differences in

sales and production were absorbed in the inventory. The increase to decrease in sales

and production are shown in the inventory. In the given table of inventory if the cost is

$800 to hire an employee this includes the lower productivity that required to find new

employee.

Technology is developed to meet a problem or opportunity. Business use

technology to extend their abilities and to serve their customers. It helps the

businessmen to achieve their goals, used in manufacturing, improving costumer's

transportation and services, business communication and also to improve their services

and products as a way of gaining competitive advantages. So that, business owners

and managers must know the importance of technology in the field of business. Clients

may like if any manager or owner of the business openness helps create a more level
playing field where any size company can set itself apart by innovating on top of open

technology. Cost and skills are two words we hear over and over again from clients.

Open technology helps reduce operational and capital expenditures because

organizations are not locked into any one vendor and instead can utilize a large

ecosystem. And as personnel move on or change roles, organizations don't have to

replace costly. Clients may also appreciate that innovation comes more quickly with

open technologies.

Table 1.1

Function Area Goals Key Results Time Frame

Production -to meet the -train and orient the -one month

Management customer's operators of the

satisfaction and to machine breakdown

improve their and to produce the

production output. exact quota or the

production.
CONCLUSION

Based on the findings, the following conclusions are drawn.

1. The shortage of product is one of the major problems experienced by the Law King

Company.

2. Lawn King Company is a medium-sized of lawn mower equipment with four lines

lawn mower.

3. Based on the findings, the current shift in demand threw the company off because

they we're not prepared for the surge of the market shift.

4. Lawn King Company developed a more efficient model that allows them to address

the issue with product shortages.

5. Based on the findings, the company has pursuing their best to have a higher rate of

sale for this year.