CASE 13.1 Wash & Dry, Inc. Wash & Dry (WD) is a small manufacturing company with

Question

CASE 13.1 Wash & Dry, Inc. Wash & Dry (WD) is a small manufacturing company with annual revenues for 2015 reaching $10 million. Located in Bellefonte, PA, WD produces various types of laundry and personal so aps as well as an array of paper products, such as paper towels and na pkins. The unique nature of WDs products have allowed it to grow from a start-up in 2010 with reve. nues of $1 million to where it is today. WDs products are totally sustainable and command a higher price than competitors in the markets they serve. Their products are sold through both mass merchandisers as well as specialty retailers. WD manufactures it products in two plants in Bellefonte: one dedicated to the soap line and one to paper products. From these two plants, finished products are transported to their distribution center located in Harrisburg, PA. From there, mixed shipments of soap and paper are sent to the retailer distribution centers where they are sorted and mixed with other products going to retail stores. As a relatively small company, WD had a very unsophisticated set of key performance indicators (KPIs). At the plant, the KPI was "did we make what we were scheduled to make today" At the DC, the KPI was "did we ship what we were supposed to ship today." Although these two KPIs seemed to work in the past, WDs growth and pressure from its retail customers for better service made it necessary for WD to consider developing a more comprehensive set of KPIs CASE QUESTIONS 1. If you were hired as a consultant to develop these KPIs for WD, how would you assess what KPIs they should be measuring? In general, what areas of service and cost would these KPIs address? Be sure to include both internal and customer KPIs. 2. What KPIs would you recommend for the manufacturing facility? Why? 3. What KPIs should be used at the distribution center? Why? 4. How would you measure the revenue and profit impacts of these new KPIs?

Explanation / Answer

1-Now WD have expanded and grown which creating more value to it, so KPIs should be assessed by evaluating the business, area of operation, places of operation, complexity of structure and operations.The KPIs should address the production cost, administration cost in services customer services, how customers are satisfied with the service, satisfaction of channel members, employees.

2- The KPIs should be planned Vs Actual, variance, reason for variance, effectiveness of Material requirement planning.

3- How effective is communication, distribution channel, budgted vs actual, efficiency

4- I will measure this by doing a variance analysis and taking effective measures .

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