Ventura, Napoleon Andre C.

A Case Study for Beaver Engineering Group

BUS-118-B

Problem

 Manufacturing Process took 20-30 weeks to manufacture

 3:1 comparing to what they foresee that is supposed to be 6:1
 The competition is intense and holding them back
 150 suppliers, bad quality control
 The managers don’t have voice over the organization.

Information about the Company

 Beaver Engineering Group plc was founded in 1951 in Norwhich.

 Was formed by Victor Balding and his son Tony Balding which is the manager for marketing,
design and who spearheaded the growth in production.
 The company is known for high technology machine tools for CNC machines.
 They supply throughout parts of the world.
 They are known for customized machine
 Great After Sales Services
 Constant Development their product and design.
 Expanding in a highly competitive/ red sea market.
 Have approximately 250 employees
 Were recruited base on experiences.

Facts

 In 1985 their turnover had been £7 they expect a £8 in 1986 and £11 for 1987
 Was one of the largest in market share in 1986
 Everything started at 1992,
 Has 10 product range machines, modification change at a rate of 6 per day.
 Machine turnover period was between 20-30 weeks
 Products are Customized
 High Consumer Loyalty and Retention
 Best After Sales Service
 Choose their supplier base on price, delivery reliability, nearness to Norwhich and willingness to
work JIT
 terms of labor their operatives are flexible but limited to one type of machine.
 Their operations changes of specifications are said to be one factor for limiting profitability
 It causes repercussion in production, planning, stores & ordering.
 Cost of poor quality is brought by in casting & accumulation of tolerance errors.
  Management Style is centralized to their owner Victor Balding & his son Tony Balding which
controls the marketing, design & production growth.

Alternative Courses of Action

1. They should start Made-to-Order products since they have a high market share, has great
consumer retention and consumers have positive reinforcement towards their recognition. With
this, they won’t have excess stock and consumers will be willing to wait for their customized
variant. With this, we can control the value of the production level. By identifying the value of
production level, we could maximize the quality of the product since we are not producing just
for the sake of producing since those products are pre-sold already.

2. Limit their Suppliers they have a handful of suppliers with different quality control levels. This
provide confusion as the benchmark for the quality of products is questionable since each
factory has different standard even if they have the same raw base material.

3. Cutting the customization and creating a list of available design, this would however turn the
consumers since the brand has a high perception towards the consumers. Also, by fixing the
organizational management, there would be better transparency between the organization
4. They should start Pre-order products since they have a high market share, has great consumer
retention and consumers have positive reinforcement towards their recognition. With this, we
can control the value of the production level. By identifying the value of production level, we
could maximize the quality of the product since we are not producing just for the sake of
producing since those products are pre-sold already. However, this option limits the
costumization ability which what were the consumers were patronizing towards the brand

Recommendation

They should start Made-to-Order products since they have a high market share, has great
consumer retention and consumers have positive reinforcement towards their recognition. With this,
they won’t have excess stock and consumers will be willing to wait for their customized variant. With
this, we can control the value of the production level. By identifying the value of production level, we
could maximize the quality of the product since we are not producing just for the sake of producing since
those products are pre-sold already.

I chose this recommendation because I know that they are a market leader and capable of doing this. As
a marketer, my perception towards the brands is always about the consumers and the level of quality of
the product that the consumers are going to receive. By doing the made-to-order we have control on
the volume and the speed of the products that we are going to manufacture.
Conclusion

Beaver Engineering Group is a great organization, the company values its costumer, a market leader and
is perceived well by the consumers. The problem in which they couldn’t handle at the start are problems
which company who scale doesn’t know where to position.

They won’t have excess stock and consumers will be willing to wait for their customized variant. With
this, we can control the value of the production level. By identifying the value of production level, we
could maximize the quality of the product since we are not producing just for the sake of producing
since those products are pre-sold already.

By doing following the recommendation, I am optimistic that this decision will help Beaver be put on a
better Position.