Alternatives That the Millers Might Pursue

There are many alternatives that the Millers might pursue including short term , meduim and long alternatives

Hire consultants: Custom Molds needs to figure out the reason behind un-predictable bottlenecks occuring in all over the production process and needs to do it quickly else they might lose some of their clients. Consultants have the advantage of looking at the bigger picture from outside and may be able to help Custom Molds figure out the reason behind the bottlenecks. Key factors: Cost of hire, consultants must be specialist in this field.

Change plant layout: Custom Molds also needs to change the plant layout from job shop to probably assembly line. This is due to the fact that they are getting more business in the plastic parts manufacture than the custom moulds and plastic parts are produced in large volumes. Key factors: Down time of the plant while changing the layout, cost of layout change, proper utilization of available space.

Medium term alternatives

Invest in a proper supply chain system: The Company needs a proper supply chain system which is agile, adaptable and aligned (Lee, 2004) to the interests of all firms involved. This will help them in managing expectations of the clients by knowing when they will be able to deliver the product. Key factors: Consent of all users/suppliers, cost of the SC system, reliability of the SC system, usage of the SC system.

Use of Information Technology in testing & inspection, and in calculating delivery times: Information Technology can help the company to automate the testing & inspection process thereby reducing the re-work. IT can also help Custom Molds to determine realistic delivery times. Key factors: Cost of the IT system, time frame of installation, inputs from the potential users of the IT system.

Long term alternatives

Prepare for a complete phase-out of custom moulds: It’s a long term alternative but is very much realistic. The company may start losing money producing...