CONCEPT DESIGN

SERVICES
Azalia M Indra | Rizki Nasibah | Kurnia
Khafidatur | Helmina Ardiyan
MM Reguler 13

CASE FACTS

Over a 10 yer period CDS Totally transform the outlook, resources, and prospects.
From being an inward-looking manufacturing company become a custumer focused,
integrated service provider. From largely commodity supplier, CDS have become
known for value added and innovation designs
James Thompson is CEO of Concept Design Service (CDS).
Concept Design Service (CDS) was believed to be one of Europes most profitable
plastic household products (homeware) bussiness
1960s CDS had changed the name as Focus Plastics, the company growth had
come initially from the manufacture of complex injection-moulded plastic
components for large industrial customers. It had rapidly extended its range to
include populas household items such as washing-up bowls, pedal bins, baby baths,
bucket and dustpans. These were solds under the Focus brand name.
By the early 1990s, the homewhere business had grown to account for over

CASE FACTS(continued)
The Products
1989 the company produced around 200
homeware stock-keeping units (SKUs), and had
developed a reputation as a reliable source of
supply of consistently high-quality product. It was
then decided to withdraw from the complex
and cyclical industrial mouldings market in
order to concentrate on delevoping the more
profitable household products business.
According to CEO, by 1990 all our industrial
business had been terminated

CASE FACTS(continued)
Market Positioning
Linda Fleet as CDSs Marketing Director,
joined the company in early 1990s.
Previosly worked in a senior marketing
role for large retail chain of paint and
wallpaper retailers
First new range of kitchen items was
launched in 1992, under the Concept
brand name. Within one year, we had
over 3000 retail outlets signed up, and
provided each with point of sale display
facilities and high quality brochures.
CDSs research indicated that some
customers kept our products on
display in their kitchens as object
beauty, or even as tokens or symbols
of their lifestyle, rather than hiding
them away in cupboards.
For Concept brand name, the company
start focused on design of the product.
Make any item in any color.
To keep ahead, CDS continue to launch

CASE FACTS(continued)
Manufacturing Operation
All manufacturing was carried out in a
large, leased, modern facility, which
was located approximately 20 km
from Head Office
The factory had areas for receiving and
holding raw materials, and the
moulding area include 24 large
injection-moulding machines
The most recent had robotic devices
to remove finished products from
the machines to place them on
conveyors leading to the packing
area
Products, and individual components of
product, were moved to thhe packing
area, where they were assembled
and/or labelled (where required),
inspected, packed in bags or cartons
and palletised.

The Supply Services Department of the Company was regarded as the heart of the
companys customer service drive, to integrate the efforts of design, manufacturing and sales., it
has two functions :
Plan and Schedule production in order to maintain inventory availability
Plan distribution of products from warehouse to customer.

Sandra White, (Supply Service Planning Manager) responsible for the scheduling all
manufacturing and distribution and for maintaining inventory levels for all
warehouse items, prepared performance reports, monitoring the utilisation of
equipment, output rates for each product and scrap rates.
Linda Fleet did not often fell the need to intervene in the day-to-day workings of the
department, preferring to concentrate on the more innovation orientated
activities of the Marketing Department
Relative autonomy allowed Sandra to optimise the planning throughout the
internal Supply Chain.
Try to establish a preferred sequence of production of each machine and
mould. To minimise set-up times,

Careful scheduling is important to maintain utilisation,

The factory is usually not scheduled for weekend production, and maintenance is
usually performed on Saturday mornings.
with the wider product range, now at about2500 SKUs, this was somewhat inevitable
The pick rate help to measures the availability of finished goods inventory,
Everything would be fine if we were able to stick to schedules
the market is dynamic and continual schedule changes affect utilisation, efficiency and
scrap rates. Certainly better marketing forecasts would help.but even our own
promotions are sometimes organised at such short notice that we often get caught with
stockouts
Concept products are much more seasonal, which makes capacity planning and
scheduling very difficult at peak times around November (for the Christmas gift
markets) and Easter
The Mould Machine comes from Koreas Suppliers , this mould offer a high quality but
Cheap price
It usually takes around 4 to 5 months to get a new mould, which then has to be trial

The Concept Office Design House brand had been introduced in

late 1999, and was perceived as a very successful entry into
a new market, employing many of the marketing ideas
developed with the Concept household range.
Linda Fleet saw an increasing role for collaborative
arrangements. It may be that they are seeing a fundamental
change in how they do business within their industry.
CDS had several partnerships with the Italian design houses, and
they are most successful companies of Italian design. So they got
the patent of their design so their manufacturing department
made the same design. and they were able to translate the most
difficult technical design into manufacturable & stable products.

PROBLEM STATEMENT

Problem :

-The market is dynamic and continual

schedule,
changes affect
rates. Certainly better .marketing forecasts

utilisation,
efficiency and scrap
would
help
- But, our own promotions are sometimes
organised at such short notice
that we often get
caught with stockouts.
Most of our time is spent planning the production and delivery schedules
for Concept products, which involves a vast range of moulded parts, boughtin components, packaging, and finished goods
The Biggest Problem in this Supply Service Department , there is a lack of
management to produce the product brand both Focus and Concept.it is
caused by The Demand of Marketing are so Dynamic. And the Factory are
too crowded, to produce both brand.
In Conclusion, Supply Service Department just able to produce 98% from the
Demands.
For Focus Brand, it is show High Income, for a production and distribution,
but the risk are also high. If this company cant afford the demand of
Organization Consumer, the highest loss would be received.

QUESTIONS
1. How successful have Concept Design Services strategies been since the decision
to exit the industrial products market?
2. In what ways have the marketing strategies affected the activities of the
Manufacturing Operations and Suply Services departements?
3. What have been the main features of the strategies adopted by Manufacturing
and Supply Services during the 1990s? What operations-based competitive
advantages were developed under the influence of these strategies? Were the
strategies clearly developed or did they evolve, or both?
4. How might the development of the design house and major retailer services
markets affect the operation of the Manufacturing and Supply Services
departements? More specifically, what new capabilities may be required to serve
these new markets effectively and profitably?
5. What changes, if any, would you recommend for the business to continue its
growth in sales and profit?

ANSWERS
1.

Since the decision to exit the industrial products market Concept Design
Services (CDS) have increasing in income and companys profit. Concept
Design Services (CDS) was in B2B business and then it transformed into B2C
business. It would be identified that the industrial markets were becoming
more difficult with very less profit. They have two plans for supply services
first is plan & schedule production in order to maintain inventory availability.
Other is distributes the product from the warehouse to the customer. Just in 1
year they had over 3000 retail outlets signed up and provided each with
point-of-sale display facilities and high quality brochures. Productivity
improvement. They normally allow 3 shifts for testing of each new module
received In the supply services. So, this strategies are affected to the
marketing operations & supply services.
2.
the marketing strategies affected the activities of the Manufacturing
Operations and Suply Services departements with :
. The large range of products were moved to packing area, where they have
modified or labelled.
. The most recent Robotic device to remove finished Goods to place for Packing
Area.
. Products was inspected, packed in bags or cartons & palletized.
. Good Platform access to load delivery vehicles. To Plan & Schedule Production
in order to maintain Appropriate inventory Availability. Then systematic study is
done for distribution of Products which is from warehouse to Customer.
With Those Way, Company can Increase the efficiency of production process, so it

3. The main features of the strategies adopted by Manufacturing and

Supply Services during the 1990s are already have skilled and
experienced labors to maintain new larger machines easily who formed
industrial product. With drawl from complex and cynical industrial
mouldings and concentrate on household products.
. In 1990 all the integrated business was terminated, because they cant
stand with other competitors, so then they had high focus on relatively
new market with a small numbers of competitor ( blue ocean strategy)
It was widely enforcing on customer focused service, from B2B To B2C
with a name brand of Concept which provide a unique and beauty
household.
. Supply services have two plans, they run both of that, 1)-Maintain
appropriate inventory & 2)-distribute the products to customers. The
Results show the increasing of the sales company and the whole
strategy was a reason of great success for the company.

4.

The development of the design house and major retailer services

markets that affect the operation of the Manufacturing and
Supply Services departements had several partnerships with the
Italian design houses, and they are most successful companies of
Italian design. So they got the patent of their design so their
manufacturing department made the same design and they were
able to translate the most difficult technical design into
manufacturable & stable products. This type of collaboration
involved CDS taking responsibility for the whole category of plastic
home wares for a large supermarket group. And the product
ranges supplied were not particularly adventurous in their design
or colors but most were clearly in the CONCEPT style and often
carried the concept brand.
. CDS had a good marketing capabilities but they have to design new
products aspect from the only kitchen appliances like they have to
come up into the furniture & another designing field so maybe they
can get more effect on market & make profit also.

5.

The recommend for the business to continue its growth in

sales and profit is stay focus on their main business,
because a good company , is accompany who has 3
characteristics,one of them is Going Concern or focus on
their main business. CDS have a good design in the
kitchen appliances. And it was a one of the best company
of kitchen appliance at that time.
According to the example case from Linda Fleet, Same Design
from design product is not growing more than to years, So, as
per the example CDS have a great design in the kitchen
appliances but they have make consist change in design with
the innovative idea. this change will help them to continue its
growth in sales & profit.

The Importance of Operation Management

for CDS
Objective:
Add Value of their Final
Product
Products Productivity
improvement (design
value)
Customer Satisfaction
Improvement
Competivity
Improvement

Examples
Apply the technology in
aerospace sector onto
home ware items
Expanded into a
premium product Market
(High Quality & High
Design Value
Integrating new
functions with its
operations.

The Latest
Condition of
Concept Design
Service

Nowadays, this companys, are still

existing, but with a new office and home
design solution.

TERIMAKASIH