Carrying Cost The Cost Of Keeping Parts In Stock Of The Needed Part So Pathway D

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carrying cost ( the cost of keeping parts in stock ) of the neededpart , so Pathway developed a policy of carrying the industry’slargest inventory of the most commonly needed replacement*parts .But many parts ( especially larger parts ) were custom made ( tocustomers " specifications ) and consequently could not be held ininventory easily . Pathway had to completely rethink its design ,fabrication , and delivery approaches to speed them up .Previously , each work order progressed through a series ofdepartments as each completed its work in turn . Delays andbottlenecks often interrupted this sequence , and discoveriesmade late in the process often required that earlier steps berepeated . Pathway reengineered ( redesigned ) this work so that acall for new bellows came in to a cross- functional team thatstayed with the order until it was filled ( fully processed ) and .thus , they no longer needed time – consuming " handoff’s "( processing an order by one person or department after another ) .With this process change , Pathway was able to establish acompetitive advantage in quick response to custom bellowsfabrication ( made to customers ‘ specifications ) .What if the fastest way to get a customer’s plant ( industrial unit )*back on line ( in full operation ) was to repair a bellows , rather*than replace it ? Pathway had never considered repairing bellowsbecause of its historical strength in selling them . However , withthat strength now matched by rivals , Pathway thought thatrepairs might be a viable new source of revenues . Consequently ,it began training employees to repair in the field . This required acombination of sound practical engineering skills and world -class welding and metal fabrication skills . The company was sosuccessful in developing these organizational capabilities that itdeveloped a totally different approach to replacing / repairing*bellows . It’s field service crews learned how to build newexpansion joints , often even while a plant remained in operation .Pathway offered to have a crew anywhere in the world within 24hours , and crews developed unique skills such as rebuilding fire -damaged bellows even as internal fires continued to burn . Thisunique set of production processes led to the creation of a newbusiness unit , which established a strong competitive advantageover rivals and helped Pathway achieve record profit levels .Case Questions :"1 . Discuss how the strategic position of Pathway Bellows evolvedover time … What are the resource strengths of Pathway Bellows and howdoes it dynamically manage them ?"3. Describe the approach of Pathway Bellows in dealing with itsexternal environment .* . How sustainable is the Pathway Bellows competitiveadvantage ? Explain .` Open WithPrint