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JSK Incorporated. Location Factors. Community Considerations (30%) Green attitude Size Middle-age and Families present Tax breaks on eco-friendly companies. Location Factors. Proximity to Supplier (25%) Compete on Quality Establish an efficient working relationship
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Location Factors • Community Considerations (30%) • Green attitude • Size • Middle-age and Families present • Tax breaks on eco-friendly companies
Location Factors • Proximity to Supplier (25%) • Compete on Quality • Establish an efficient working relationship • Eliminate unnecessary travel times- creating quick turn around time to customer
Location Factors • Proximity to a University (20%) • Compete on innovation • Research resources available • Employment from graduating students • Help maintain employees • Growing community • Entertainment available • School for children of employees
Location Factors • Quality of Life (15%) • Low crime rate • Good schools • Churches • Restaurants • Sports and Entertainment
Location Factors • Price (10%) • Reasonable • Tax breaks • Upkeep
Location Site A Location: 1254 S. Main Street Cost: $250,000 Square Footage: 8,000 sq. ft
Location Site B Location: 5247 N. Jacob Street Cost: $250,000 Square Footage: 5,000 sq. ft
Location Site C Location: 6987 East Georgia Avenue Cost: $300,000 Square Footage: 8,000 sq. ft
Value Chain • Draft blueprint with dimensions for molds • Create mold for basic product • Negotiate contract with United Plastic Recycle • Financing • Green Education and Training • Product Advertising • Pi ck up raw materials for production Pre-Production Production Post-Production • Create basic and custom product • Inspection and safety testing • Value and Productivity • Packaging • Transportation and Shipping Services • Warranty and Claim Services • Customer Reviews and Online Feedback • Warehouse and Inventory Management
Supply Chain Suppliers Plant Intermediaries Customers Petroleum Injection Molding Product Distribution Customers United Plastics Molded, Tested/Completed Product Finished Products ORCO Online Orders Customizable Parts & Accessories Other Parts SCM Process Manage Supply Plan Supply Chain/Produce Product Distribution Manage Orders/Feedback
Selection Process • Value Chain • Proximity to Supplier • Gain and maintain relationship • Proximity to Alabama State University • Research and Innovation • Supply Chain • Proximity to Supplier • Pick up Raw Materials
Facility Layout • Hybrid Style Layout • Process line production • Flexibility of injection model machine allows • Online Individual customization from product design • Product line production • Retail Bulk Orders
Facility Layout • Product Layout • Layout calls for 5.25 min duration for each unit using 3 employees working 40hr/wk. • Equates to 11 units per hour (60min/5.25); 440 units a week (11units * 40hr/wk) • Breakeven analysis called for 257 units a week
Just In Time Operations Benefits of JIT • Smaller Inventories • Reduced WIP • Reduced Space Requirements • Shorter Lead Times • Increased Quality • Increased Productivity • Increased Flexibility • Lower Production Cost Five Lean/JIT Principles • Eliminate Waste • Increase Speed and Response • Improve Quality • Reduce Cost • Maintain respect for all workers Increased Net Profit
Just In Time Applied Concepts • Eliminate Waste • Requires good housekeeping by employee(s) • Minimal waste in assembly • Recycling of plastic shavings • Pre-portioned dye • Hybrid layout eliminates “people waste” • No wait time between jobs • No unnecessary material handling or stalled work flow • Layout reduces travel distances between jobs
Just In Time Applied Concepts • Improved Quality • Innovation • Research through Alabama State University • Online Customer Feedback • Goal- Zero Defects • Inspection Team before Packaging • Continuous Improvement
Just In Time Applied Concepts • Improve Flexibility • Flexible batch sizes to fit customers needs • Assures order times are accurate and efficient • Makes worker’s time more valuable because they are always working on paid orders