Sport Obermeyer

Sport Obermeyer Case

Module 1, Session Six

Matching Supply and Demand

&

Cycle Time Reduction

October 23, 2015

Executive Summary

Sport Obermeyer, Ltd is a leader in the US fashion skiwear industry. In addition to the ever changing fashion interest of the American consumer, we face pressure from low priced competitors. In order to keep our place in the industry, we must change some of our current practices.

We must develop our demand forecast using data driven techniques rather that the best estimates of our managers.

We must get closer to our final customer in order to keep in touch with emerging trends and consumer demands.

We need to reduce the cycle time for design to production of finished goods.

We need to take advantage of the low labor costs in China without losing focus on our quality products.

This report addresses how we can implement changes that will keep us profitably at the top of our industry.

Issue Identification

This is a summary of the issues that must be addressed:

* The production schedule for our November order must be set

* The internal demand forecast process must be improved

* Develop a way to get consumer information more quickly

* Reduce the number of styles handled in order to reduce costs and speed up the design to production time

* Lead times for both raw materials and finished goods need to be reduced

* The Lo Village facility should be phased slowly into production and ensure that Obersport quality standards are met.

Environment and Root Cause Analysis

Environment

Sport Obermeyer. Ltd. has been a leader in the fashion ski wear industry since its inception in 1947. This year’s annual sales should be about $32.8 million. We have a 45% share of the children’s skiwear market but only 11% of the adult market. Our primary competitor, Columbia Sportswear, focuses on low price, high volumes sales and has grown to have 23% of the adult market.

Our target buyer...