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CASE STUDY - ASSIGNMENT "War Golf Eagle Limited"

LGSC 6014 – Logistics and Supply Chain Management II

Submitted By:

Zakira Phillips – 620091398


The War Eagle Golf (WEGL) case study examines the challenges faced by Pearl Golf,
a leading manufacturer of golf clubs, as it tries to compete in a highly competitive and
fast-changing market. Pearl's CEO, John Thompson, is considering several production
strategies to improve the company's competitiveness, including semi-customized
production and outsourcing. He raises questions about the best way for Pearl to meet
customer demands, manage production costs, and stay competitive in an ever-changing
market.

1. In terms of production strategy, should Pearl stick with mass


production or try something else? Explain.
A viable option for Pearl Golf to consider is a flexible manufacturing strategy that
allows for customization of the product while maintaining a relatively high level of
efficiency in production. This is because a flexible manufacturing strategy can help
Pearl Golf to better match supply with demand and respond quickly to changes in
customer preferences.
One approach to consider is postponement, which involves delaying product
differentiation until closer to the customer order date. The product is initially produced
in a generic form, and final customization is made based on the specific requirements
of the customer order. This would allow Pearl Golf to reduce inventory costs and
minimize waste by producing generic products and customizing them later based on
customer orders.
Another viable consideration is mass customization, which involves producing products
with a high level of customization at a relatively low cost. This approach requires a high
level of coordination and collaboration across the supply chain, as well as the use of
advanced technology such as computer-aided design (CAD) and rapid prototyping.
In conclusion, Pearl Golf should consider a range of production strategies that allow for
customization while maintaining efficiency and reducing costs. This could include
postponement or mass customization. By adopting a flexible manufacturing strategy,
customer demands can be met better while gaining a competitive advantage in the
market.

2. Is WEGL’s make-to-stock assembly process well-suited to


Thompson’s new strategy to make semi-customized golf clubs?
What other assembly options could be considered?
No, WEGL’s make-to-stock assembly process may not be well-suited to Thompson’s
new strategy to make semi-customized golf clubs. The make-to-stock process involves

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producing and stocking products in anticipation of customer demand, and
customization is limited to a few pre-set options.
The new strategy s requires a more flexible and agile assembly process that can quickly
respond to customer orders with a high level of customization. One option for WEGL
could be to shift towards a make-to-order or assemble-to-order production strategy,
where golf clubs are only produced or assembled after receiving customer orders. This
would allow for greater customization and flexibility in the assembly process, while
reducing inventory costs and minimizing waste.
Another assembly option that could be considered is modular production, where golf
club components are produced separately and combined at a later stage in the assembly
process. This approach would allow for greater customization by offering a wider range
of component options that can be assembled to create a semi-customized golf club.
Furthermore, computer-aided design (CAD) and rapid prototyping technologies could
be used to enable faster and more accurate customization of golf clubs. This would
require a more integrated and collaborative supply chain, with close coordination
between suppliers, manufacturers, and customers.
In conclusion, while the make-to-stock assembly process has worked well for WEGL
in the past, this new strategy requires a more flexible and agile assembly process. By
adopting a make-to-order, assemble-to-order, or modular production strategy, along
with the use of advanced technology, WEGL can better meet customer demands and
gain a competitive advantage in the market.

3. What do you think of Thompson’s idea to outsource the


manufacturing of the T2?
Thompson’s idea to outsource can provide many benefits, including reduced costs,
increased flexibility, and improved access to specialized knowledge and expertise.
However, outsourcing also involves certain risks, such as quality control issues, supply
chain disruptions, and loss of control over the manufacturing process.
In the case of T2, outsourcing the manufacturing could potentially reduce costs and
improve access to specialized manufacturing knowledge and expertise. However, it
could also lead to a loss of control over the manufacturing process, which could impact
the quality of the golf clubs and the ability to meet customer demand.
To mitigate the risks associated, Thompson should carefully evaluate potential partners
based on their track record of quality control, reliability, and cost-effectiveness. In
addition, he should ensure that there is a clear and effective communication channel
with the outsourced manufacturer, with regular updates on production status, quality
control, and delivery schedules.

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Moreover, consideration should be made on the impact of outsourcing on the overall
supply chain and logistics operations. This includes evaluating the impact of
outsourcing on transportation costs, lead times, and inventory management. He should
also consider the potential impact of outsourcing on customer satisfaction and brand
reputation, particularly if there are any quality or delivery issues.
In conclusion, while outsourcing the manufacturing of the T2 could provide benefits in
terms of cost and access to specialized knowledge and expertise, it also involves risks
that should be carefully evaluated and mitigated. The potential impact on the overall
supply chain and logistics operations should be carefully evaluated, as well as the
impact on customer satisfaction and brand reputation, before making a final decision.

4. Develop a brief proposal for the production plan requested by


Thompson. Discuss your recommended production strategy,
assembly process, technology needs, and the benefits/drawbacks
of your proposal.
Pearl Golf should adopt a hybrid production strategy, combining both mass production
and postponement manufacturing. The mass production aspect will focus on producing
standard components, such as shafts and grips, in large quantities and storing them in
inventory. Meanwhile, the postponement aspect will involve producing the customized
parts of the golf clubs, such as the club head and grip size, only after receiving orders
from customers.
The recommended assembly process is a make-to-order (MTO) approach, where the
final golf club is only assembled after an order has been received. This process aligns
with the postponement strategy, allowing for customization of the final product. The
MTO process will require a flexible assembly line that can quickly adapt to the different
customization requests.
To support this production strategy, Pearl Golf will require an efficient inventory
management system that can track the various components and finished products.
Additionally, the company will need a robust order management system to handle the
customization requests and efficiently schedule the production process. Technology
such as 3D printing could also be considered for the production of customized parts.
The benefits of this production plan include reducing the risk of excess inventory and
enabling Pearl Golf to better respond to changing market demands. Additionally, the
customization options will provide a competitive advantage and potentially increase
customer satisfaction.
The drawbacks to this approach are that it may require a more significant investment
in technology and supply chain management. Additionally, there may be increased lead
times to produce customized golf clubs, which could impact customer satisfaction.

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This hybrid production strategy with an MTO assembly process and efficient inventory
and order management systems will enable Pearl Golf to efficiently produce semi-
customized golf clubs while minimizing risk and maximizing customer satisfaction.

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