Case Study 2: Supply Chain Management at Regal Marine

Case Study 2: Supply Chain Management at Regal Marine

Case Study 2 Questions

1. What other techniques might Regal use to improve supply chain management?

2. What kind of response might members of the supply chain expect from Regal because they’re partnering in the supply chain?

3. Why is supply chain management important to Regal?

Each Case Study paper is to consist of the following components:

1. Title page and two written pages with no more than 500 words.

2. Answers to individual questions (as assigned) Each assignment will have specific questions you need to address. You should create a sub-headed section for each one.

3. References/Appendix (if required) These are not research papers per se, so you may not have the need to cite outside sources. If you do, however, they should be identified on a proper reference page. Similarly, if you are required to do calculations and choose to perform them on a separate page, you should include them in an appendix.

Weekly Case Paper Grading Rubric
Category Points Weighting Description
Content 24 80% · Required questions are answered in an accurate and appropriate manner.

· Adequate support is given for recommendations.

· Calculations (where required) are performed correctly.

Grammar and Spelling 3 10% · Paper is well written and reflects college level writing.

· Rules of grammar, usage, and punctuation are followed and spelling is correct.

· Sentences are written in a complete, concise manner, and sentence transitions maintain the flow of thought throughout the paper.

Formatting and APA Usage 3 10% · Paper includes the components required for the assignment: title page, answers to questions, references or appendix (where appropriate).

· APA format is followed throughout the paper.

Total 30 100%  


Supply Chain Management at Regal Marine

Like most other manufacturers, Regal Marine finds that it must spend a huge portion of its revenue on purchases. Regal has also found that the better its suppliers understand its end users, the better are both the supplier’s product and Regal’s final product. As one of the 10 largest U.S. power boat manufacturers, Regal is trying to differentiate its products from the vast number of boats supplied by 300 other companies. Thus, the firm works closely with suppliers to ensure innovation, quality, and timely delivery.

Regal has done a number of things to drive down costs while driving up quality, responsiveness, and innovation. First, working on partnering relationships with suppliers ranging from providers of windshields to providers of instrument panel controls, Regal has brought timely innovation at reasonable cost to its product. Key vendors are so tightly linked with the company that they meet with designers to discuss material changes to be incorporated into new product designs.

Second, the company has joined about 15 other boat manufacturers in a purchasing group, known as American Boat Builders Association, to work with suppliers on reducing the costs of large purchases. Third, Regal is working with a number of local vendors to supply hardware and fasteners directly to the assembly line on a just-in-time basis. In some of these cases, Regal has worked out an arrangement with the vendor so that title does not transfer until parts are used by Regal. In other cases, title transfers when items are delivered to the property. This practice drives down total inventory and the costs associated with large-lot delivery.

Finally, Regal works with a personnel agency to outsource part of the recruiting and screening process for employees. In all these cases, Regal is demonstrating innovative approaches to supply chain management that help the firm and, ultimately, the end user. The Global Company Profile featuring Regal Marine (See Below) provides further background on Regal’s operations.

Discussion Questions*

1. What other techniques might Regal use to improve supply chain management?

2. What kind of response might members of the supply chain expect from Regal because of their “partnering” in the supply chain?

3. Why is supply chain manage



GLOBAL COMPANY PROFILE Regal Marine: Product Strategy Provides Competitive Advantage at Regal Marine

Forty years after its founding by potato farmer Paul Kuck, Regal Marine has become a powerful force on the waters of the world. The world’s third-largest boat manufacturer (by global sales), Regal exports to 30 countries, including Russia and China. Almost one-third of its sales are overseas.

Product design is critical in the highly competitive pleasure boat business: “We keep in touch with our customers and we respond to the marketplace,” says Kuck. “We’re introducing six new models this year alone. I’d say we’re definitely on the aggressive end of the spectrum.”

CAD/CAM is used to design the rain cover of a new product. This process results in faster and more efficient design and production.

Here the deck, suspended from ceiling cranes, is being finished prior to being moved to join the hull. Regal is one of the first boat builders in the world to earn the ISO 9001 quality certification.

With changing consumer tastes, compounded by material changes and ever-improving marine engineering, the design function is under constant pressure. Added to these pressures is the constant issue of cost competitiveness combined with the need to provide good value for customers.

Here the finishing touches are being put on a mold used for forming the hull.

Consequently, Regal Marine is a frequent user of computer-aided design (CAD). New designs come to life via Regal’s three-dimensional CAD system, borrowed from automotive technology. Regal’s naval architect’s goal is to continue to reduce the time from concept to prototype to production. The sophisticated CAD system not only has reduced product development time and cost, but also has reduced problems with tooling and production, resulting in a superior product.

All of Regal’s products, from its $14,000 19-foot boat to the $500,000 52-foot Sports yacht, follow a similar production process. Hulls and decks are separately hand-produced by spraying preformed molds with three to five layers of a fiberglass laminate. The hulls and decks harden and are removed to become the lower and upper structure of the boat. As they move to the assembly line, they are joined and components added at each workstation.

Wooden components, precut in-house by computer-driven routers, are delivered on a justin-time basis for installation at one station. Engines—one of the few purchased components—are installed at another. Racks of electrical wiring harnesses, engineered and rigged in-house, are then installed. An in-house upholstery department delivers customized seats, beds, dashboards, or other cushioned components. Finally, chrome fixtures are put in place, and the boat is sent to Regal’s test tank for watertight, gauge, and system inspection.

Once a hull has been pulled from the mold, it travels down a monorail assembly path. JIT inventory delivers engines, wiring, seats, flooring, and interiors when needed.

At the final stage, smaller boats, such as this one, are placed in this test tank, where a rain machine ensures watertight fits.

(Heizer 154-156)

Heizer, Jay, Barry Render. Operations Management, 11th Edition. Pearson Learning Solutions, 01/2013. VitalBook file.

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