Case Study 4-6 Grand Jean Company

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Case Study 4-6 Grand Jean Company During the mid-19th century the Grand Jean was founded. The Grand Jean Company’s main finished goods are pants. In 1989 Grand Jean Company was one of the world’s largest clothing manufacturers. The company consist of 25 company owned and operated manufacturing plants. The plants are treated as expense centers. These plants can produce 20,000 pairs of plants in a week. They augment this production by having 20 contractors making their products. These contractors manufacturing facilities produce one-third of the pants that Grand Jean Company sells. Grand Jean Companies control quality by offering a maximum price to those contractors who’s production is both reliable and of high quality. To reduce cost of start-up and changeover Grand Jean will have a plant produce one style (type or model) of pants for an entire year. Sometimes the market demand creates a need for deviation in the assigned yearly product production plan. The company looks at past performance and adjusts it with a slight upward curve to track current plant performance. They will analyze any issues they discover and correct any problems quickly. They also track the standard labor hours of production to the actual hours used in each plant to evaluate the plant manager’s performance. The company does give annual bonuses for high production low cost plants as a reward. This bonus is directly based on profits. The main goal of Grand Jean Company is profit oriented. They will now provide a fashion jean product of style. To offer this new line they will need to increase the production capacity on the manufacturing facility. They will need to make the production process more efficient creating increased production speed, minimizing effort and lower cost. This will increase the savings in the production process. The marketing division will need to

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