Running head: CUSTOM FABRICATORS INC. CASE ANALYSIS
Custom Fabricators Inc.
Happy Man
UOP ? OSC301
Abstract
This paper will summarize the case, identify the role of operations management at Custom Fabricators Inc., and answer six discussion questions pertaining to the following:
1 How does Ben Lawson's Custom Fabricators, Inc., create value for Orleans?
2 In the past, what has been Ben Lawson's competitive advantage in keeping the Orleans business?
3 Have Orleans' priorities changed?
4 Should Ben change his business model?
5 How should Ben position his company in the value chain?
6 What should Ben do to ensure his company's future success?
Custom Fabricators Inc. Case Analysis
Ben Lawson, CEO of Custom Fabricators, Inc., has done a lot of business with Orleans Elevator in Bloomington over the years but wonders how long his business relationship will continue. Initially Ben's organization was making the custom control panels for the elevators. Since that time the company has gotten a lot of other business from Orleans Elevator. Ben's organization now makes all kinds of special brackets and panels for the plant. Over the years a lot has changed with "outsourcing", Ben's company now makes the entire control panel, complete with the buttons and the wiring harness. One of the biggest money makers for Ben's organization is the elevator motor housing they custom fabricate in the shop and ship directly to the site where the elevator is being assembled. Ben is really getting concerned with the future of his custom fabricating business. Orleans Elevator is now trying to further reduce cost associated with its elevators, through the cost of the raw materials. The idea is to contract with Mexican suppliers, ...