The Wedgeys Inc.Claudia Garcia, Nadia Guerrero, Alex Kollaritsch

The WedgeyThe purchase of one

Wedgey golf club includes:

• One grip

• Four extenders for shaft

• One golf club head

• Optional customized grip

Core Competencies

Strong research and development team

Recyclable materials for production purposes

Use of graphite and stainless steel

Customization of grips

Factors Relevant to Location Decision

Proximity to customers – 30%

Proximity to source of supply – 18%

Proximity to sources of labor, expertise, etc. – 18%

Site considerations – 15%

Community considerations – 10%

Quality of life issues – 9%

Location Options

Atlanta, GA

Space: 27,500 SF

Rental Rate: $10.83 Per Square Foot Per Year

Total: $297,825.00

San Marcos, TX

Space: 20,205 SF

Rental Rate: $9.90 Per Square

Foot Per Year

Total: $200,029.50

Las Vegas, NV

Space: 26,000 SF

Rental Rate: $11.23 Per Square Foot Per Year

Total: $291,980.00

Factor Rating Diagram

Location Ranks Location Scores

Factor Weight

Atlanta

Las Vegas

San Marcos

Atlanta

Las Vegas

San Marcos

Proximity to customers 30 3 4 5 90 120 150

Proximity to sources of

supply18 2 3 3 36 54 54

Proximity to sources of

labor, expertise,

etc.

18 4 3 4 72 54 72

Site Consideration

s15 3 2 3 45 30 45

Community Consideration

s10 3 2 4 30 20 40

Quality of life issues 9 4 3 4 36 27 36

Total: 309 275 397

San Marcos, TX631 Mill Street, San Marcos, TX 78666

Pre-Production Services

Online custom web order Custom grip

Golf club design and testing

Sales and marketing team Advertisement, social media, demos, etc.

Cross-train workers Quality built from the bottom up

Supplier agreements

Post-Production Services

Recycling program Return of used Wedgey golf clubs to be recycled for future

manufacturing Customers that utilize program will receive 10% off next

Wedgey purchase

30-day money back guarantee

Lifetime warranty (manufacturer defect)

Technical support (web and phone)

Instruction manual Printed manual included with purchase Online video tutorials

Supply Chain

Customers

Retailers: Big 5, Academy, Sports Authority, Dicks Sporting Goods

Wedgey Manufacturing

FacilitySan Marcos, TX

Thermon Corp. Graphite supplier San Marcos, TX

TAD Metals Steel supplier San Marcos, TX

Capital City Upholstery

Supply Rubber supplier Austin,

TX

3rd party logistics (UPS) will handle delivery between Manufacturer and

retailer Manufacturer and

customer (custom orders only)

Supply Chain Effects on Location Decision

Limiting transportation costs

Increasing throughput

Close to 3 cities with good golfing communities

Raw material suppliers within 30-mile radius

Manufacturing Process

Hybrid Manufacturing Process

Process layout for grips Grips are made based on design chosen by

customer

Product Line – repetitive and sequential Shafts Extenders Club heads

Facility Dimensions

Facility Area Space Required (square feet)

Shipping and Receiving 1,000

Club Head Casting and Assembly line area 9,100

Extenders and Shafts 2,250

Custom Grip Orders 2,200

Accounting 350

Research & Development 725

Purchasing 350

Sales 850

Break Room 900

Ladies Restroom 340

Men’s Restroom 340

Supervisor Office 450

Storage Room 1,350

Total 20,205

1. Raw Materials are

received

2. Stainless steel is

molded in machines for club heads

3. Extenders are made

4. Shafts are formed, then sanded, cut, and painted

5. Custom grips are placed in

shafts

6. Shaft, extenders

and head are attached,

coated and packaged

Output

3 minutes for club head casting

30 seconds to make extenders

4 minutes to make shafts

2 minute for custom order grips

30 seconds to take to assembly line

1 minute for assembly

1 minute for quality inspection

12 minutes to make one golf club. 5 units/ hr

Overall Output

270 working days

8 hour workdays

20% Safety capacity

5 units/hr.

40 units/day

Forecasted output: 10,679 Theoretical: 10,800

The plant capacity is 48 units per day yielding 12,960 units a year, allowing 20% safety capacity

Just-In-Time

Improving quality Quality at the source, provide immediate

feedback, Jidoka

Eliminating waste Utilize safety capacity, eliminate waiting time,

employ a pull system

Respect for all people Cross-functional skills, decisions made from

bottom up, flexible with breaks and holidays

“Team” Approach

Production team made up of delegates from different steps in production process Shipping and receiving, club head, extenders, shafts,

custom grips, and club assembly line

Sales and marketing team

Customer service team

Research and development team

Representative of each team reports to administrative team daily

“Team” Approach

Bottom up decision making is promoted

Using JIT method, workers inspect their own work

Thank You!Questions?