1. NATALIE BECK JEFF MORRIS ROBERT SIMON Clean Teeth, Inc.

2. STEPS AND ANALYSIS Part 1

3. Steps We followed these steps in our quest for a good location: 1. Identified dominant location factors 2. Developed location alternatives 3. Evaluated location alternatives

4. Step 1: Dominant Location Factors & Why They’re Important Proximity to suppliers, customers, and labor – closeness will allow us to keep costs down Cost of living – low cost of living will allow us to pay lower wages and taxes Quality of life for employees – high quality of life will attract good workers

5. Core Competencies Competitive Priorities Sole focus on toothbrushes Creative/cost-effective work force Good relationship with suppliers Low cost High quality Core Competencies and Competitive Priorities

6. How Dominant Location Factors Tie in with Core Competencies and Competitive Priorities Close Proximity: lower transportation costs, steady source of high quality supplies, & strong relationship with suppliers Low Cost of Living: can pay lower wages and fewer taxes (low costs) High Quality of Life: able to attract employees who will be creative and cost-effective.

7. Hollywood, FL Aurora, CO In the same city as main supplier: LEB Enterprises Median home price is lower than national average Chosen by CNN as 70 th best place to live & very close to ocean In the same city as main supplier: Curbell Plastics Median home price is lower than that in Hollywood Very close to Denver, skiing, and beautiful mountains Step 2 : Location Alternatives

8. EVALUATION OF LOCATIONS Part 2

9. Step 3: Evaluation - Factor Rating Method Factor ScoreWeighted Score Factor WeightHollywoodAuroraHollywoodAurora Proximity to Suppliers 4055200 Proximity to Customers 20244080 Proximity to Labor 204480 Cost of Living 10232030 Quality of Life 10545040 Total100390430

10. Factor Weights Proximity to suppliers carries the most weight (40) because it has such an impact on our costs. Proximity to customers and labor each have a weight of 20 because this also affects cost, but not as much. Cost of living and quality of life both have a weight of 10 because only we will be able to attract some labor no matter where we are. Therefore, it is less important.

11. Location Scores Proximity to Suppliers (A: 5, H: 5) – both cities have major plastic suppliers Proximity to Customers (A: 4, H: 2) – Aurora is more centrally located so we can sell to a variety of regions Proximity to Labor (A: 4, H: 4) – both cities have ample labor supply Cost of Living (A: 3, H: 2) – neither city is “inexpensive,” but Hollywood the less costly of the two Quality of Life (A: 4, H: 5) – Hollywood is known as one of the best cities in US, Aurora is near Denver, but not as nice

12. SUPPLY AND VALUE CHAIN STRATEGY Part 3

13. Supply Chain Value Chain Suppliers Manufacturing Plant Retailers Customers Design Marketing Sales Ordering & Receiving Production Final Inspection Packaging Shipping Outline

14. Value and Supply Chain We are very close to our suppliers so we readily get raw materials. Aurora has plenty of space for our manufacturing plant. With the use of just in time we see no need for a warehouse. Since we will producing a lot of toothbrushes we will utilize distributors. After being distributed, customers will be able to purchase from retailers of their choice.

15. Deploying Toothbrushes We will use distributors to get our products into the retail stores. This way we won’t can reach a broad customer base with minimal travel time and expense.

16. MANUFACTURING PROCESS Part 4

17. Manufacturing Process Layout Utilize a Product Layout via assembly line balancing. The production process is primarily automated based on machines or use of robots. Labor is used to provide maintenance on machines and monitor production. We will be producing the same type of product; therefore, this is the most efficient production method.

18. Core Competencies Competitive Priorities Sole focus on toothbrushes Creative/cost-effective work force Good relationship with suppliers Low cost High quality Core Competencies and Competitive Priorities

19. Ties with Core Competencies Our sole focus is in the production of toothbrushes. Utilizing an assembly line would be the best method of producing similar items.  Creates a Cost-Efficient work force This will allow us to have a good relation with our supplier by properly using Just-in-Time. Stimulate a creative work-force by encourage a continuous improvement in production. This allows for a smaller production space required, keeping costs lower.

20. Ties with Competitive Priorities Just-in-Time allows us to make deals with our suppliers to buy at lower costs. Suppliers will have an incentive to provide our company with the highest quality products, so we will continue to buy from them.

21. Manufacture Process Machines will be used to melt plastic pelts, form toothbrush handles and grips. Robots will be used to insert bristles into the toothbrush head, move products through the production process and place products in packaging. Labor will be used to monitor the production of toothbrushes, maintain machines and perform quality control.

22. FACILITY LAYOUT Part 5

23. Facility Diagram 20x20 10x10 8x10 5x7 15x1210x10 20x20 Shipping Packaging Machine Receiving Bristle Injector Molding Machine Trimming Machine Quality check

24. Reasons for Layout By utilizing an assembly line layout, we can save space. All machines need to be connected to each other so toothbrushes can travel continuously. Receiving and Shipping are located for easy access to materials and products.

25. Flow of Production Work Element Task Description Immediate Predecessor Number of Workers Task Time (Seconds) 1.Receiving Receives the orders None5 2. Molding Machine Melts plastic pelts and shapes toothbrush #1 220 brushes every minute 3. Bristle Injector Injects the bristles into the toothbrush #2 2900 holes per minute 4. Trimming Machine Trims the bristles to certain shapes #3 240 brushes every minute 5. Quality Check Checks the over all quality of the brush #4 350 brushes every minute 6. Packaging Packaged and sealed #5 2100 brushes every minute 7. Shipping Shipped out to distributors #6 5

26. JUST-IN-TIME Part 6

27. Just-in-Time: Eliminate Waste Operator down-time used to perform preventative maintenance on equipment. Recycle defective products to reproduction. Develop and implement an efficient production system to avoid unnecessary handling and bottlenecks. Eliminate overproduction and work in process. Produce items customers demand.

28. Just-in-Time: Reduce Cost Implement an efficient production process. Use of innovative materials. Avoid overproduction to eliminate the need of warehouse space. Operator down-time used to perform preventative maintenance on equipment.

29. Just-in-Time: Improving Quality Operator inspections at each step of production  Hold individuals responsible for defects  Fix defects before moving on to next task Encourage continuous improvement in efficiency throughout the whole production process Empower using Jidoka  Provides the authority to “stop the line” with probable cause.

30. “Team” Approach 21 factory workers plus 1 supervisor per layout. Provide cross-training in all areas of production.  Allows you to assist coworkers with problems. Quality check before progression  Eliminate the progression of defective items  Hold individuals responsible for defects Utilize operator down-time to perform preventative maintenance on equipment.  This improves efficiency and reduces problems for fellow coworkers.