case study
Case Study Assignment – Winter 2013
Steven He
MGTS 352 – Operations Management
Constraint Management
Tetsu Nakashima
March 5, 2013
Business Strategy of CRP Products
A business strategy is the mechanism by which the direction of a business is coordinated, and the steps it will take to achieve its goals. CRP Product’s goal is to “create beautiful and functional designs from recycled plastic.” CRP Products has incorporated environmental values into their culture and products by featuring a new type of “lumber” made from recycled plastic. This practice has differentiated CRP from their competitors also providing the opportunity to conserve their finite resources. A wide commitment was also towards the quality of their outdoor furniture, providing its customers with the best quality products in a variety of colors. By building these quality products, time was compromised but customers were willing to wait a bit longer for quality goods and to build repeat business.
The four generic performance dimensions of CRP’s products are as listed:
Quality: CRP maintains the quality of its products because they control every aspect of the production process. This includes the control of color and stability to ultraviolet radiation.
Time: Delivery delays of CRP’s product grew longer, and estimated times were less reliable. The company is unable to keep up with demand because it has reached maximum capacity on borrowing resources. This resulted in the increase of CRP’s finances.
Flexibility: With its self-controlled operations, flexibility is almost without limits. The unique material allows its product line to include different types of outdoor furniture and in various colours.
Costs: Raw materials cost are $1.00 per pound and labour costs are $10 per hour.
CRP Product’s business strategy is developed in three steps: analysis, integration and implementation. In the analysis step of their
Steven He
MGTS 352 – Operations Management
Constraint Management
Tetsu Nakashima
March 5, 2013
Business Strategy of CRP Products
A business strategy is the mechanism by which the direction of a business is coordinated, and the steps it will take to achieve its goals. CRP Product’s goal is to “create beautiful and functional designs from recycled plastic.” CRP Products has incorporated environmental values into their culture and products by featuring a new type of “lumber” made from recycled plastic. This practice has differentiated CRP from their competitors also providing the opportunity to conserve their finite resources. A wide commitment was also towards the quality of their outdoor furniture, providing its customers with the best quality products in a variety of colors. By building these quality products, time was compromised but customers were willing to wait a bit longer for quality goods and to build repeat business.
The four generic performance dimensions of CRP’s products are as listed:
Quality: CRP maintains the quality of its products because they control every aspect of the production process. This includes the control of color and stability to ultraviolet radiation.
Time: Delivery delays of CRP’s product grew longer, and estimated times were less reliable. The company is unable to keep up with demand because it has reached maximum capacity on borrowing resources. This resulted in the increase of CRP’s finances.
Flexibility: With its self-controlled operations, flexibility is almost without limits. The unique material allows its product line to include different types of outdoor furniture and in various colours.
Costs: Raw materials cost are $1.00 per pound and labour costs are $10 per hour.
CRP Product’s business strategy is developed in three steps: analysis, integration and implementation. In the analysis step of their