Imaginative Toys

IMAGINATIVE TOYSI.PROBLEM STATEMENT

How will Imaginative Toys meet the demands of its consumers?

AEAS OF CONSIDERATION

A.PROCESS PLANNING

The process used to manufacture the three product lines couldbe replicated easily. All three processes were labor intensive,with plastic parts molding being the only skilled position.

B.PHYSICAL FACILITIES MANAGEMENT

Gerald Kramb, the founder of the company, and his staff researched two alternative locations for expansion. One was in amaquiladora in Nogales, Mexico and the second was in Europe.

C.PERSONNEL MANAGEMENT

Since the organization is labor-intensive, labor cost should betaken into consideration. Also the availability of labor and howpeople in a certain location act towards work. Where to get theworkers should be considered.

III.ALTERNATIVE COURSES OF ACTION

A.

Locating to the US old site would only mean expansion. Doingthis would put much less pressure on the company’s already thinmanagement structure. Besides, there was not any suitablespace to be found anymore.

B.

Locating in Mexico could mean shipping if ever skilled labor isnot available. On the other hand, the improving trade relationsand the projected relaxation of tariffs and duties made this anattractive alternative. Labor cost also could be substantiallyreduced. Labor/Manpower is not a problem here.

C.

Locating in Europe would give comparable labor cost to those inSeattle but transportation cost would be 10-15% higher on toysshipped back to the US market. The projected single-marketprogram made this alternative attractive; this is designed tobring free movement by people, goods, capital and services tothe European community by January 1, 1993

D.

Locating on both Mexico and Europe might be conceivable. SinceMexico got the manpower and Europe got the facilities, joiningthe two would be great if and only if the sales projections areactually held because by then the demand would support athree-plant network.

E....