carrying cost ( the cost of keeping parts in stock ) of the needed part , so Pathway developed a policy of carrying the industry's largest inventory...
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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
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