NATALIE BECK JEFF MORRIS

ROBERT SIMON

Clean Teeth, Inc.

STEPS AND ANALYSIS

Part 1

Steps

We followed these steps in our quest for a goodlocation:

1. Identified dominant location factors2. Developed location alternatives3. Evaluated location alternatives

Step 1: Dominant Location Factors & Why They’re Important

Proximity to suppliers, customers, and labor – closeness will allow us to keep costs down

Cost of living – low cost of living will allow us to pay lower wages and taxes

Quality of life for employees – high quality of life will attract good workers

Core Competencies Competitive Priorities

Sole focus on toothbrushes

Creative/cost-effective work force

Good relationship with suppliers

Low costHigh quality

Core Competencies and Competitive Priorities

How Dominant Location Factors Tie in with Core Competencies and Competitive Priorities

Close Proximity: lower transportation costs, steady source of high quality supplies, & strong relationship with suppliers

Low Cost of Living: can pay lower wages and fewer taxes (low costs)

High Quality of Life: able to attract employees who will be creative and cost-effective.

Hollywood, FL Aurora, CO

In the same city as main supplier: LEB Enterprises

Median home price is lower than national average

Chosen by CNN as 70th best place to live & very close to ocean

In the same city as main supplier: Curbell Plastics

Median home price is lower than that in Hollywood

Very close to Denver, skiing, and beautiful mountains

Step 2 : Location Alternatives

EVALUATION OF LOCATIONS

Part 2

Step 3: Evaluation - Factor Rating Method

Factor Score Weighted Score

Factor Weight

Hollywood Aurora Hollywoo

d AuroraProximity to Suppliers 40 5 5 200 200

Proximity to Customers 20 2 4 40 80

Proximity to Labor 20 4 4 80 80Cost of Living 10 2 3 20 30Quality of Life 10 5 4 50 40Total 100 390 430

Factor Weights

Proximity to suppliers carries the most weight (40) because it has such an impact on our costs.

Proximity to customers and labor each have a weight of 20 because this also affects cost, but not as much.

Cost of living and quality of life both have a weight of 10 because only we will be able to attract some labor no matter where we are. Therefore, it is less important.

Location Scores

Proximity to Suppliers (A: 5, H: 5) – both cities have major plastic suppliersProximity to Customers (A: 4, H: 2) – Aurora is more centrally located so we

can sell to a variety of regionsProximity to Labor (A: 4, H: 4) – both cities have ample labor supplyCost of Living (A: 3, H: 2) – neither city is “inexpensive,” but Hollywood the

less costly of the twoQuality of Life (A: 4, H: 5) – Hollywood is known as one of the best cities in US,

Aurora is near Denver, but not as nice

SUPPLY AND VALUE CHAIN STRATEGY

Part 3

Supply Chain Value Chain

SuppliersManufacturing

PlantRetailersCustomers

DesignMarketingSalesOrdering & ReceivingProductionFinal InspectionPackaging Shipping

Outline

Value and Supply Chain

We are very close to our suppliers so we readily get raw materials.

Aurora has plenty of space for our manufacturing plant.

With the use of just in time we see no need for a warehouse.

Since we will producing a lot of toothbrushes we will utilize distributors.

After being distributed, customers will be able to purchase from retailers of their choice.

Deploying Toothbrushes

We will use distributors to get our products into the retail stores. This way we won’t can reach a broad customer base with minimal travel time and expense.

MANUFACTURING PROCESS

Part 4

Manufacturing Process Layout

Utilize a Product Layout via assembly line balancing.

The production process is primarily automated based on machines or use of robots.

Labor is used to provide maintenance on machines and monitor production.

We will be producing the same type of product; therefore, this is the most efficient production method.

Core Competencies Competitive Priorities

Sole focus on toothbrushes

Creative/cost-effective work force

Good relationship with suppliers

Low costHigh quality

Core Competencies and Competitive Priorities

Ties with Core Competencies

Our sole focus is in the production of toothbrushes. Utilizing an assembly line would be the best method of producing similar items. Creates a Cost-Efficient work force

This will allow us to have a good relation with our supplier by properly using Just-in-Time.

Stimulate a creative work-force by encourage a continuous improvement in production.

This allows for a smaller production space required, keeping costs lower.

Ties with Competitive Priorities

Just-in-Time allows us to make deals with our suppliers to buy at lower costs.

Suppliers will have an incentive to provide our company with the highest quality products, so we will continue to buy from them.

Manufacture Process

Machines will be used to melt plastic pelts, form toothbrush handles and grips.

Robots will be used to insert bristles into the toothbrush head, move products through the production process and place products in packaging.

Labor will be used to monitor the production of toothbrushes, maintain machines and perform quality control.

FACILITY LAYOUT

Part 5

Facility Diagram

20x20

10x10 8x10 5x7 15x12 10x10

20x20 Shipping

Packaging

Machine

Receiving

Bristle Injecto

rMolding Machine

Trimming

MachineQuality check

Reasons for Layout

By utilizing an assembly line layout, we can save space.

All machines need to be connected to each other so toothbrushes can travel continuously.

Receiving and Shipping are located for easy access to materials and products.

Flow of Production

Work Element

Task Description

Immediate Predecesso

r

Number ofWorkers

Task Time (Seconds)

1. Receiving Receives the orders

None 5

2. Molding Machine

Melts plastic pelts and shapes

toothbrush

#1 2 20 brushes every minute

3. Bristle Injector

Injects the bristles into the

toothbrush

#2 2 900 holes per minute

4. Trimming Machine

Trims the bristles to

certain shapes

#3 2 40 brushes every minute

5. Quality Check

Checks the over all quality of the

brush

#4 3 50 brushes every minute

6. Packaging Packaged and sealed

#5 2 100 brushes every minute

7. Shipping Shipped out to distributors

#6 5

JUST-IN-TIME

Part 6

Just-in-Time: Eliminate Waste

Operator down-time used to perform preventative maintenance on equipment.

Recycle defective products to reproduction.Develop and implement an efficient

production system to avoid unnecessary handling and bottlenecks.

Eliminate overproduction and work in process.

Produce items customers demand.

Just-in-Time: Reduce Cost

Implement an efficient production process. Use of innovative materials.Avoid overproduction to eliminate the need of

warehouse space. Operator down-time used to perform

preventative maintenance on equipment.

Just-in-Time: Improving Quality

Operator inspections at each step of production Hold individuals responsible for defects Fix defects before moving on to next task

Encourage continuous improvement in efficiency throughout the whole production process

Empower using Jidoka Provides the authority to “stop the line” with probable

cause.

“Team” Approach

21 factory workers plus 1 supervisor per layout.Provide cross-training in all areas of production.

Allows you to assist coworkers with problems. Quality check before progression

Eliminate the progression of defective items Hold individuals responsible for defects

Utilize operator down-time to perform preventative maintenance on equipment. This improves efficiency and reduces problems for fellow

coworkers.