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California-Illini Manufacturing - Case Study Example
Author : fmckenzie
Finance & Accounting
Pages 4 (1004 words)
California-Illini Manufacturing (Add (Add (Add Date) California-Illini Manufacturing Executive Summary The California-Illini Manufacturing Company (Cl) operates its plant in the rural central valley of California. The Company produces plain and hard-faced replacement tillage tools in the United States…
Their cost reduction strategy though seemed efficient; it was not able to compete well in the short run. The Cl’s standard cost system and the high levels of work-in-progress had impacts on its cost reduction strategy. However, the new Production Control/Inventory Control (PCIC) Manager is seen working on the right track, by implementing new strategies to manage the constraints to restrict the company form producing and building higher inventory levels for products not having sufficient demand. Thus, implementing a Theory of constraint approach would be most suitable for the Company to manage the human and material resources well. Problem Statement Competitive strategy, in the normal sense refers to the way a company can achieve a competitive advantage in its operating market while choosing a distinctive way of competing. California-Illini Manufacturing Company is able to compete in the global market by making the maximum use of their competitive strategy. They are the largest producers of plain and hard-faced replacement tillage tools in the United States. They concentrate more on handmade tillage tools. They use expensive metal pieces and metal forged metals in the production process, together with using manual electric arc welders. In the global market, there is greater opportunity for handmade products, especially for machineries and automobiles. ...