Video Case Study: Strategy at Regal Marine Chp 2.

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Video Case Study Strategy at Regal Marine (Chp
2.)

• Onur Can Ulas
• Perihan Yavuzcan

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Discussion Questions

• State Regal Marines mission in your own words.
• Identify the strengths, weaknesses,
  opportunities, and threats that are relevant to
  the strategy of Regal Marine.
• Define Regals strategy.
• Define 10 Operations Management decisions and
  discuss how each would apply to operations
  decision making at Regal Marine.

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Company Description

• One of the USs ten largest powerboat
  manufacturers,
• Designing and manufacturing luxury performance
  boats from 19 to 52 feet.
• Established in 1969.
• Family owned operated company
• Head-quarters in Orlondo, Florida contains nearly
  half a million square feet including a
  state-of-the-art Yacht Center and 7 acre and 20
  deep test basin.
• The Valdosta, Georgia facility encompasses an
  additional 150,000 square feet of production
  space
• 180 of top dealers
• 45 countries

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Regal Marines Mission

• With Gods Help and Steadfast commitment to
  integrity, we will develop a team of exceptional
  people and relationships to provide exceptional
  customer satisfaction
• Our goal is to continue work boats reducing cycle
  time, which we do from different technologies,
  improvements in that, raw materials and also
  reducing the time a boat build start to finish.
  We work with raw material and technologies that
  help minimize anything that would be seen as
  environmentally negative.

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Strategy
Differentiation (better)
Quick Response (more responsive)
Cost Leadership (cheaper)
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Regal Marines Strategy

• NPMT (New Product Management Team) having
  representation from sales, manufacturing,
  engineering, marketing and other organizations
• American Boat Builders Association
• The Global Company Profile

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Regals Strategy Differentiation

• Differentiate products through
• constant innovation
• unique features
• high quality
• Evaluate competitors
• Add value to customer
• Try to meet a need with product innovation.

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Regals Strategy Differentiation

• Operations managers at Regal assist in defining
  everything about their boats that will influence
  the potential value to the customer.
• This may be the convenience of
• a broad product line,
• product features, or
• product service.
• Product service can manifest itself through
  convenience (location of boat distributors or
  stores), training, boat delivery, or maintenance
  services.

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Strengths

• NPMT (New Product Management Team)
• Evaluating market and companies fitting with
  their mission and mission statement, strategy,
  market place and identity.
• Trying to fit with distribution outlook.
• Dealers are not only stated in U.S. but also
  globally.

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Opportunities

• Improving their quick response strategy would
  bring customer satisfaction
• Improving their cost leadership strategy would
  make them a company of a broader society.

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Threats

• Customer tastes
• Trends
• Competitive Products
• Material Innovations
• Government Regulations
• Taxes

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10 decisions that OM at Regal Marine

• Boat design, which defines much of the
  transformation process.
• Quality. Customers quality expectations must be
  determined and policies and procedures
  established to identify and achieve that quality.
  
• Process design, which commits management to
  specific technology, quality, human resource use,
  and maintenance.
• Location selection, which for a boat builder may
  determine ultimate success.
• Layout design, processes and materials must be
  sensibly located in relation to each other.
• Human resources and job design. People are an
  integral and expensive part of the total system
  design at Regal. The quality-of-work life
  provided, the talent and skills required, and
  their costs must be determined.
• Supply-chain management. These decisions
  determine what parts of the boat are to be made
  and what parts are to be purchased.
• Inventory. Inventory decisions are tied to
  customer satisfaction, suppliers, production
  schedules, and human resource planning.
• Scheduling. Feasible and efficient schedules of
  production have to be developed.
• Maintenance. Regal has to make decisions
  regarding desired levels of reliability and
  stability.

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Boat design

• Companies need to be different from others in
  some ways in order to survive in business.
• Regal has
• Broad Production Line
• Large Scale of Customization
• Computer Aided Design
• Prototyping
• Testing

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Quality

• Quality checking for
• Raw Material
• Suppliers production methods
• Work-in-progress product
• Finished Product
• At Regal
• Continuous innovation
• Inspection systems
• Quality standards - ISO 9001-2000 certificate

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Process design

• Production with
• Most efficient technique
• Least cost
• Research and development is the key factor for
  continuous improvement.

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Location Selection

• For selecting a location to base a company
• Available Shipment means
• Availibility of human resource
• Price and sufficiency of raw material resources
• Rates of governmental taxes
• Infrastructure of the facility area
• Closeness to the ports and docks
• Closeness to customers and suppliers

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Layout design

• Fixed-Position Layout
• Size of the Facility
• Capacity of Production
• Product and Inventory Storage
• Volumes of the Machines

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Human resources

• The quality of the job people are doing
  determines the quality of the products.
• In order to achive this
• continuously training
• corporate culture
• social services
• Working environment safety

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Supply-Chain Management

• Producing vs. Purchasing
• In which way the better quality would be
  achieved?
• Which will be less costly? Producing or puchasing
  a part?
• Does the company have enough know-how in order to
  produce the necessary parts?
• Will the parts fit with the product?
• Will the purchased product will have enough
  quality?

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Inventory

• Inventory Keeping
• Production Continuity
• On-time Delivery
• Customer Satisfaction

Inventory management is keeping the minimum stock
without any delay for responding to demands
caused by the lack of needed parts of production.
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Scheduling

• Scheduling
• Response time to Product demand
• Equipment used during production
• Human resource
• Misestimating the Delivery Dates Customer
  dissatisfaction

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Maintenance

• Quick response and satisfactory problem
  resolutions bring customer satisfaction
• At Regal
• Life-time whole structural warranty
• 5 year transferrable warranty
• Service points over 45 other countries

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References

• http//www.regalboats.com/
• http//orlando.bizjournals.com/orlando/stories/200
  6/09/04/daily28.html
• http//www.referenceforbusiness.com/

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• Thank You for
• Listening!