The document summarizes the operations of Custom Molds Inc., a company that designs and fabricates molds and manufactures plastic parts. It discusses the company's history and growth since 1987, current issues around increasing order delays and defective parts, and competitive priorities around quality, cost and lead time for molds versus plastic parts. It also analyzes causes of problems and provides alternatives for Custom Molds at the short, medium and long term levels to address operational challenges and changes in industry demands.

1. Operation Management (GSM5113)
GROUP MEMBERS:
Lecturer: Dr. Murali
Pantea Fotouhi (GM04672)
Somayeh Rezaei (GM04675)
Nasim Zaeri (GM04649)
M. Mahdi Mesbahi (GM04701)

2. Introduction
1987
Custom Molds, Inc. was founded
by Tom & Mason Miller 1
2 Reputation
Designer & Fabricator of precision
molds
Aims
Custom design molds for
manufacture of electronic
connectors 3

3. Introduction
1990s
Expanded into manufacture of plastic parts +
business trends moving toward strategic
partnerships with suppliers
4
Reputation
5 Aims
Focus in high quality and custom
design mold and limited manufacture of
plastic parts
Growing reputation of being a
supplier of high-quality plastic
parts 6

4. Introduction
2000s
Further expansions & operations managed in
2 distinct but linked processes:
Fabricating Molds
Manufacturing Plastic Parts
7
Aims
8 Reputation
Designer & fabricator of precision molds,
as well as a supplier of high-quality
plastic parts
Focus in high quality and
custom design mold and
manufacture of plastic parts 9

5. Introduction
Recent Years
Changing environment of electric industry impacts both
business and manufacturing process of Custom Mold, Inc.
10

6. Introduction
Customer Mold Process
Relationship
Design
(21 day)
Getting Packing and
Fabrication Test
Order Sending
(28 day) (1 day)
(0 day) (1 day)
Purchase Row
Material
(28 day)

7. Introduction
Plastic Part Process
Produced Mold
Getting Purchase Dry Mix Wet Mix Injection
Order Row Material
(0 day) (7 day) (0 .5 day) (0.5 day) (7 day)
Packing and Test Cut and Trim
Sending
(1 day) (1 day) (1 day)

8. Question 1

9. Question 1
Major Problems:
•Increasing the order delivery time from three to four
or five weeks (delay)
•Increasing the number of defective parts

10. Question 1
Business Strategy:
Mold Orders
2006 2007 2008
Order Size
Number of orders Number of orders Number of orders
1 80 74 72
2 60 70 75
3 40 51 55
4 5 6 5
5 3 5 4
6 4 8 5
7 2 0 1
8 10 6 4
9 11 8 5
10 15 10 5
total 230 238 231

11. Question 1
Business Strategy:
Plastic Part Orders
2006 2007 2008
Order Size Number of Number of Number of Number of Number of Number of
orders production orders production orders production
50 100 5000 93 4650 70 3500
100 70 7000 72 7200 65 6500
150 40 6000 30 4500 35 5250
200 36 7200 34 6800 38 7600
250 25 6250 27 6750 25 6250
500 10 5000 12 6000 14 7000
750 1 750 3 2250 5 3750
1000 2 2000 2 2000 8 8000
3000 1 3000 4 12000 9 27000
5000 1 5000 3 15000 8 40000
Total 286 47200 280 67150 277 114850

12. Question 1
Manufacturing Process:
Process Molds Plastic Parts
Volume Low High
Flexibility High Low
Complexity High Low
Customization High Low
Consumer Involvement High Low
Project Mass Production

13. Question 1
Some Causes:
•Design: this activity takes too long, of course
customer relationship is very important, but idea
clarification can reduce time consuming.
•Purchase row materials: this activity also is time
consume. They can decline the process time by a good
purchase planning.

14. Question 1
Some Causes:
•Mold fabrication: this process itself takes just three to
five days whereas, because of bad planning this
activity may take four weeks.
•Testing: high volume of defective parts shows the
weak testing activity

15. Question 2

16. Question 2
Number of Orders
300
280
Number of Orders
260
240
220
200
2006 2007 2008
Mold Orders Plastic Part Orders

17. Question 2
Competitive Priorities of the fabrication process:
•Quality
• Cost
• Lead-time
• Flexibility

18. Question 2
Competitive Priorities of the plastic part:
•Quality
• Cost
• Lead-time
• Flexibility

19. Question 2
Changing the Nature of the Industry:
It needs have changed for both processes in mold fabrication, there is
a need to make very small batches of many different design. in parts
fabrication, there is a need to make large
batches of the same design, longer runs
on the same settings. The demand for
production of molds is slowly declining
while the demand for parts is increasing.

20. Question 3

21. Question 3
Alternatives:
•Short term to resolve day-to-day
operational problems that would make
immediate performance improvements
•Medium-term decisions require more in-
depth change and it would be more costly
•Long-term strategic operational decisions
which require tight integration with
organization’s objectives

22. Question 3
Short Term Alternatives:
•Improve scheduling to reduce operating and
delivery time
•Using software Programmed
•Improving supplier relationship to reduce the
time of receiving materials
•Designate quality supervisor in charge of mold
fabrication
•More oversight on testing and inspection
•Separate the master machinist from the designer
•Forecast the future orders and needed row materials

23. Question 3
Medium Term Alternatives:
•focus on the supplier relationship
through supply chain management
• methodologies.
•Reorganize plant layout and
processes
•Focus on machinery and invest in
buying the new machinery

24. Question 3
Long Term Alternatives:
•Updating the mission and goals of
the company
•Invest in new equipments or even
new firm
•Invest in R&D

25. Question 3
Rearrange Layout:
Current Layout

26. Question 3
Rearrange Layout:
Proposed Layout

27. Present like Professionals
Created by:
Mahdi Mesbahi
mahdi.mesbahi@gmail.com