Case Study
Glamour Glass Pty Ltd manufactures glass kitchenware at its Campbelltown factory its manufacturing equipment includes large machinery that was purchased 15 years ago. Glamour Glass uses small production runs and although the machinery is old, it is reliable
The company’s products are much sought after by specialty gift stores and up-market department production stores such as David Jones. It also sells its products to Saks of Fifth Avenue, in New York. While Glamour Glass has many products, among the most popular is the Punch salad bowl and servers, which competes very favorably with the latest Italian salad bowls.
Glamour Glass has just begun its first benchmarking activity. It has subscribed to an international benchmarking group that pr ovides benchmarking data specifically tailored t o different industries. The benchmarking data relating to the glass industry that is supplied by the agency includes product cost per kilogram of finished product , cycle time , reject rate, and direct labour and raw material costs per kilogram of product . The manufacturing manager, Paul Griswald, suspects that the benchmark data must relate to the famous Speedy Glass, renowned as the world’s best glass manufacturer. Speedy Glass m ass -produces glass kitchenware products using high-speed computer-controlled machinery The management account ant of Glamour Glass, Brian Hill, has prepared a report comparing tile performance of Glamour Glass with the benchmark data.
Griswald is concerned a bout the size of some of the performance e gaps between Glamour Glass’ measures and best practice, and has asked Hill to investigate
Required:
Should Griswald be concerned about the size of the performance gaps? In your answer, consider each performance measure separately.
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