Answer:

1.

What are the competitive priorities for Custom Mold’s processes and the changing nature of the industry?

With the change in the strategies, manufacturers were making strategic partnerships with their supplier to ensure the timely delivery of higher quality at lower cost allowing the additional funds to be used for other purposes. Due to these changes there was more demand for suppliers to maintain their expected levels of operation. Custom Molds competitive priorities (core competency) are being cost effective (most affordable), quality, design, effective delivery times and probably most importantly flexibility in their processes. The inability to maintain delivery schedules has become a key issue for Custom Molds. These priorities enable Customer Molds to concentrate on the operations that allow them to remain competitive. By keeping to their core competencies Custom Molds could separate themselves from other companies in the industry.

Maintaining priorities are critical. By not maintaining focus, customer demands became an issue for Custom Molds. Added to that, the company faced a lot of complaints about longer delivery times for their products and increase of returns due to defective products. In the ever changing business environment, maintaining focus on your competitive priorities are critical for a company’s success.

2.

What alternatives might the Millers pursue? What key factors should they consider as they evaluate these alternatives?

There are probably several alternatives for the Millers to have considered. One immediate consideration might be should the Millers go back to just the production of Molds. Considering their level of success in that area and the market demands, there needs to be a serious consideration that they should solely focus parts or molds in lieu of both.

Another alternative would be to hire experts (consultants) in production. Sometimes the best approach is an independent set of eyes to view an issue. A consultant brings the value of looking at the issue from outside the company and brings in experience and resolutions that worked for other companies within the industry. This is also beneficial when not just a process or procedure needs to be changed or modified, but more importantly when a culture change is needed. It is almost impossible to have a change of culture from within. This can help Custom Molds figure out the reason behind their issue in a more timely and cost effective manner. One of the key factors with hiring consultants is the cost. A question that needs to be asked is “What is the return on the investment?” Will it be cost effective or cost prohibitive?

Re-layout of the plant is another alternative.    A re-layout of the plant to make it more efficient needs to be addressed, but one of the main factors that needs to be considered with this effort is the cost of downtime during the re-design. What is the overall cost? What level of business will be lost? What is the breakeven point for the company?