Case - Lean and Mean Manufacturing at Rawlings
Since 1887, Rawlings Sporting Goods has been a leading manufacturer and marketer of sporting goods in the United States. Rawlings' mission has always centered on enabling participation by developing and producing innovative, high-performance equipment and protective apparel for the professional, amateur, and entry-level player. Rawlings advisors include former baseball stars and current players such as Derek Jeter.87 Lean manufacturing is one of the latest trends in making sure quality is built into products. Just like automobiles, sporting goods need to be built with the highest of expectations.
One of the newer concepts is called lean manufacturing. Executives at Rawlings Sporting Goods knew they were in an increasingly competitive marketplace-from the likes of Nike and Reebok. The management team decided (in a management audit) that they needed to focus on improving cost, quality, delivery, and innovation. Rawlings was introduced to lean manufacturing in the early 1990s. The major goal of lean manufacturing might be summarized as the elimination of waste throughout the entire supply chain of an organization. Waste was eliminated not only in the production process but also in the way the managers forecast customer demand, scheduled the facilities, and programmed the operations to run different lines at once.
The entire process was measured, and improvement was noticeable. The manufacturing shop employees received extensive training. Setup time for machines was cut in half. Managers walked around the manufacturing facility and mapped the flow of materials through the process. Job functions were timed. Bottlenecks were removed.
It took at least 18 months for employees to become familiar with the new methods. One of the keys to the process was balancing supply and demand. Rawlings relied on an older Japanese method of just-in-time inventory to keep their own inventories down and yet have sporting goods available just when customers needed them. Sales, marketing, operations, and product development had to learn to communicate with each other better to improve their own knowledge of the supply and demand cycle. K2, a leader in sporting goods manufacturing with at least 35 different brand names, ended up buying Rawlings. However, Rawlings' mission remains the same, which is to continually improve the quality of the product by using lean manufacturing techniques.
In 2012, Rawlings Sporting Goods partnered with ESI for a line of electronics accessories. The new line of Rawlings-branded accessories will include headphones, ear buds, pedometers, and protective cases. Although Rawlings is moving away from sport, its goal is to be a part of its customers' on-the-go lifestyles.89 To learn more about Rawlings and the products it offers, visit www.rawlings.com. To watch a video of the manufacturing of a Rawlings bat, log into www.youtube.com/Rawlings1887. Look for the video "The Making of a Rawlings Wood Bat."
Case Questions
1. What type of financial control was used at Rawlings?
a. Costs were analyzed.
b. Discipline was instituted.
c. Damage control was conducted.
d. Control frequencies were instituted.
2. The employee's receiving immediate training on lean manufacturing is an example of
a. coaching
b. discipline
c. damage control
d. controlling
3. Which of the following is most likely an example of a concurrent control at Rawlings?
a. Financial reporting was improved.
b. Setup time was cut in half.
c. CSFs were established.
d. Creativity was improved.
4. Which of the following is most likely an example of a rework control at Rawlings?
a. Bottlenecks were removed.
b. Balance sheets were prepared.
c. A CSF was developed.
d. Creativity was improved.
5. Which of the following issues was not identified in the management audit at Rawlings?
a. improving costs
b. improving quality
c. improving accounting
d. improving creativity
6. Which of the following is most likely a critical success factor (CSF) at Rawlings?
a. improving creativity
b. preparing financial statements
c. instituting a management audit
d. improving quality
7. Which of the following is most likely an example of damage control at Rawlings?
a. improving creativity
b. implementing JIT inventory
c. falsifying financial statements
d. performing management audits
8. Which of the following is an example of management by walking around at Rawlings?
a. Managers set preliminary controls.
b. Management offers counseling.
c. Managers visit the shop floor.
d. Managers write financial statements.
9. Which of the following is the main goal of lean manufacturing?
a. improving accounting procedures
b. eliminating waste
c. conducting managerial audits
d. improving standards
10. How did Japanese management theory affect the Rawlings process?
a. controlling expenses
b. improving inventory control
c. conducting managerial audits
d. analyzing financial statements