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Clean Teeth, Inc.

Clean Teeth, Inc. Natalie Beck Jeff Morris Robert Simon. Part 1. Steps and Analysis. Steps. We followed these steps in our quest for a good location: Identified dominant location factors Developed location alternatives Evaluated location alternatives.

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Clean Teeth, Inc.

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  1. Clean Teeth, Inc. Natalie Beck Jeff Morris Robert Simon

  2. Part 1 Steps and Analysis

  3. Steps We followed these steps in our quest for a good location: • Identified dominant location factors • Developed location alternatives • Evaluated location alternatives

  4. Step 1: Dominant Location Factors & Why They’re Important • Proximity to suppliers, customers, and labor – closeness will allow us to keep costs down • Cost of living – low cost of living will allow us to pay lower wages and taxes • Quality of life for employees – high quality of life will attract good workers

  5. Core Competencies and Competitive Priorities Core Competencies Competitive Priorities • Sole focus on toothbrushes • Creative/cost-effective work force • Good relationship with suppliers • Low cost • High quality

  6. How Dominant Location Factors Tie in with Core Competencies and Competitive Priorities • Close Proximity: lower transportation costs, steady source of high quality supplies, & strong relationship with suppliers • Low Cost of Living: can pay lower wages and fewer taxes (low costs) • High Quality of Life: able to attract employees who will be creative and cost-effective.

  7. Step 2 : Location Alternatives Hollywood, FL Aurora, CO • In the same city as main supplier: LEB Enterprises • Median home price is lower than national average • Chosen by CNN as 70th best place to live & very close to ocean • In the same city as main supplier: Curbell Plastics • Median home price is lower than that in Hollywood • Very close to Denver, skiing, and beautiful mountains

  8. Part 2 Evaluation of Locations

  9. Step 3: Evaluation - Factor Rating Method

  10. Factor Weights • Proximity to suppliers carries the most weight (40) because it has such an impact on our costs. • Proximity to customers and labor each have a weight of 20 because this also affects cost, but not as much. • Cost of living and quality of life both have a weight of 10 because only we will be able to attract some labor no matter where we are. Therefore, it is less important.

  11. Location Scores • Proximity to Suppliers (A: 5, H: 5) – both cities have major plastic suppliers • Proximity to Customers (A: 4, H: 2) – Aurora is more centrally located so we can sell to a variety of regions • Proximity to Labor (A: 4, H: 4) – both cities have ample labor supply • Cost of Living (A: 3, H: 2) – neither city is “inexpensive,” but Hollywood the less costly of the two • Quality of Life (A: 4, H: 5) – Hollywood is known as one of the best cities in US, Aurora is near Denver, but not as nice

  12. Part 3 Supply and Value chain Strategy

  13. Outline Supply Chain Value Chain • Suppliers • Manufacturing Plant • Retailers • Customers • Design • Marketing • Sales • Ordering & Receiving • Production • Final Inspection • Packaging • Shipping

  14. Value and Supply Chain • We are very close to our suppliers so we readily get raw materials. • Aurora has plenty of space for our manufacturing plant. • With the use of just in time we see no need for a warehouse. • Since we will producing a lot of toothbrushes we will utilize distributors. • After being distributed, customers will be able to purchase from retailers of their choice.

  15. Deploying Toothbrushes • We will use distributors to get our products into the retail stores. This way we won’t can reach a broad customer base with minimal travel time and expense.

  16. Part 4 MANUFACTURING PROCESS

  17. Manufacturing Process Layout • Utilize a Product Layout via assembly line balancing. • The production process is primarily automated based on machines or use of robots. • Labor is used to provide maintenance on machines and monitor production. • We will be producing the same type of product; therefore, this is the most efficient production method.

  18. Core Competencies and Competitive Priorities Core Competencies Competitive Priorities • Sole focus on toothbrushes • Creative/cost-effective work force • Good relationship with suppliers • Low cost • High quality

  19. Ties with Core Competencies • Our sole focus is in the production of toothbrushes. Utilizing an assembly line would be the best method of producing similar items. • Creates a Cost-Efficient work force • This will allow us to have a good relation with our supplier by properly using Just-in-Time. • Stimulate a creative work-force by encourage a continuous improvement in production. • This allows for a smaller production space required, keeping costs lower.

  20. Ties with Competitive Priorities • Just-in-Time allows us to make deals with our suppliers to buy at lower costs. • Suppliers will have an incentive to provide our company with the highest quality products, so we will continue to buy from them.

  21. Manufacture Process • Machines will be used to melt plastic pelts, form toothbrush handles and grips. • Robots will be used to insert bristles into the toothbrush head, move products through the production process and place products in packaging. • Labor will be used to monitor the production of toothbrushes, maintain machines and perform quality control.

  22. Part 5 Facility layout

  23. Facility Diagram Receiving 20x20 10x10 8x10 5x7 15x12 10x10 20x20 Molding Machine Bristle Injector Trimming Machine Quality check Packaging Machine Shipping

  24. Reasons for Layout • By utilizing an assembly line layout, we can save space. • All machines need to be connected to each other so toothbrushes can travel continuously. • Receiving and Shipping are located for easy access to materials and products.

  25. Flow of Production

  26. Part 6 JUST-in-time

  27. Just-in-Time: Eliminate Waste • Operator down-time used to perform preventative maintenance on equipment. • Recycle defective products to reproduction. • Develop and implement an efficient production system to avoid unnecessary handling and bottlenecks. • Eliminate overproduction and work in process. • Produce items customers demand.

  28. Just-in-Time: Reduce Cost • Implement an efficient production process. • Use of innovative materials. • Avoid overproduction to eliminate the need of warehouse space. • Operator down-time used to perform preventative maintenance on equipment.

  29. Just-in-Time: Improving Quality • Operator inspections at each step of production • Hold individuals responsible for defects • Fix defects before moving on to next task • Encourage continuous improvement in efficiency throughout the whole production process • Empower using Jidoka • Provides the authority to “stop the line” with probable cause.

  30. “Team” Approach • 21 factory workers plus 1 supervisor per layout. • Provide cross-training in all areas of production. • Allows you to assist coworkers with problems. • Quality check before progression • Eliminate the progression of defective items • Hold individuals responsible for defects • Utilize operator down-time to perform preventative maintenance on equipment. • This improves efficiency and reduces problems for fellow coworkers.

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