With the competitive advantage that Crocs’ supply chain holds, the company also wants to be able to sustain their customers’ satisfaction. In doing this, they must make sure that their transformation process is producing consistent output especially when new products are introduced. This can be achieved by having a solid quality control system. With the quality control system, inspections are to take place at three critical points. The first one is before production, which involves the raw materials in Crocs’ case that would be the raw materials, or chemicals that they purchase in pellet form. This first step can be eliminated by through supplier certification. The second critical point is during the production process. Process quality control takes place, which involves statistical process control. Periodic samples are taken from a continuous production, as long as sample measurements fall within the control limit the production will continue. However, if the samples fall outside the control limits, the process is stopped and a search is made for an assignable cause. In this case, the process will use a quality control chart known as an attribute control chart. The whole purpose is to find the natural random variability in the output oppose to unnecessary variations. The company must maintain that natural random variability to be under statistical control. The last critical point is after production. Following these inspections is process capability. Process capability is assessed once the process is under statistical control. It is the ability of the process to meet or exceed customers’ specifications. Process capability is determined by using the process capability index. If the process is unable to meet the customer specifications the following step is continuous improvement in which case seven tools are used including a flow chart, check sheet, histogram, Pareto chart, cause and effect, scatter diagram and a control chart. These tools are then incorporated into an improvement approach known as Six Sigma. Six Sigma includes five steps: 1. Defining a process for improvement 2. Measuring the variables and setting goals for improvement 3. Analyzing the root causes in which case the seven tools are referred to 4. Making improvements 5. Implementing a control plan to ensure that changes are permanent In furthering research on Crocs, it has been stated in online reviews by various customers that they have experienced defects in the seam of their shoes, cases in which their shoe had shrunk or didn’t fit at all, Crocs’ flip flops tearing apart, holes appearing in their shoes, and the smell of the shoes. These reviews are accessible to many consumers, and are capable of tainting the reputation of Crocs. Reviews such as these are important to pay attention to because it’s proof of the importance of solidifying an efficient quality control system. It is especially important when introducing new products, and the use of different materials. .

1. With the competitive advantage that Crocs’ supply chain holds,
the company also wants to be able to sustain their customers’
satisfaction. In doing this, they must make sure that their
transformation process is producing consistent output especially
when new products are introduced. This can be achieved by
having a solid quality control system.
With the quality control system, inspections are to take place at
three critical points. The first one is before production, which
involves the raw materials in Crocs’ case that would be the raw
materials, or chemicals that they purchase in pellet form. This
first step can be eliminated by through supplier certification.
The second critical point is during the production process.
Process quality control takes place, which involves statistical
process control. Periodic samples are taken from a continuous
production, as long as sample measurements fall within the
control limit the production will continue. However, if the
samples fall outside the control limits, the process is stopped
and a search is made for an assignable cause. In this case, the
process will use a quality control chart known as an attribute
control chart. The whole purpose is to find the natural random
variability in the output oppose to unnecessary variations. The
company must maintain that natural random variability to be
under statistical control. The last critical point is after
production. Following these inspections is process capability.
Process capability is assessed once the process is under
statistical control. It is the ability of the process to meet or
exceed customers’ specifications. Process capability is
determined by using the process capability index. If the process
is unable to meet the customer specifications the following step
is continuous improvement in which case seven tools are used
including a flow chart, check sheet, histogram, Pareto chart,
cause and effect, scatter diagram and a control chart. These
tools are then incorporated into an improvement approach

2. known as Six Sigma. Six Sigma includes five steps:
1. Defining a process for improvement
2. Measuring the variables and setting goals for improvement
3. Analyzing the root causes in which case the seven tools are
referred to
4. Making improvements
5. Implementing a control plan to ensure that changes are
permanent
In furthering research on Crocs, it has been stated in online
reviews by various customers that they have experienced defects
in the seam of their shoes, cases in which their shoe had shrunk
or didn’t fit at all, Crocs’ flip flops tearing apart, holes
appearing in their shoes, and the smell of the shoes. These
reviews are accessible to many consumers, and are capable of
tainting the reputation of Crocs. Reviews such as these are
important to pay attention to because it’s proof of the
importance of solidifying an efficient quality control system. It
is especially important when introducing new products, and the
use of different materials. The company needs to ensure that the
processes of producing these products are under control and
measuring up to the expected quality consistently.
References for reviews:
http://www.consumeraffairs.com/online/crocs.html
http://mythreecents.com/reviews/crocs-com
Crocs: Global Considerations
Overview: Supply Chain

3. · Highly flexible supply chain enables the company to build
additional products to fulfill new order quantities within the
selling season
· Able to keep up with high demand
· Previously unheard of in footwear industry
· Developed a model focused on customer needs-when a
customer needed more product, they would get it
How Crocs went global
· Launched worldwide at entry point in companies life because
larger show/apparel companies could knock them off (first-
mover competitive advantage)
· Other companies could have gone into Europe before Crocs
got there if they had infrastructure in Europe
· In every country before everyone else, able to ship product
into other countries
· Known as “originals”, there were knock offs
· Partnerships in trade shows in every industry
· Went to worldwide events
· Crocs had its own sales staff in other countries
· 2005 started production in China, using large contract
manufacturer
Developing Global Supply Chain
· Started production in China in early 2005
· Raw material sent to Italy for compounding
· Then sent to China and Canada
· I suggest keeping 3rd party manufacturing in China and other
Asian countries (b/c very flexible and able to produce high
volume)
· Also keep company owned manufacturers in Mexico, Italy and
India
· Crocs owned molding equipment/molds
· Uses country provided labor
· In 2006 Crocs took control of compounding activity with state
of art compounding facilities in Canada, China, and Mexico
(Got rid of bottleneck of having compounding done in Italy
which led to supply chain inefficiencies-material had to be sent

4. from Italy to each production site, in the correct amounts and
colors)
· Also added warehouse operations to each factory, large orders
could now be shipped directly from Chinese warehouse
Questions to ask
1. Should is vertically integrate or grow through product line
extension? Vertical integration. Expand business into different
points, supplier and distributor. Helps reduce cost and improve
efficiency
2. Should it grow organically or through
acquisition?Organically. No need to buy other companies.
Already have production companies in other countries.
3. Would potential growth paths exploit Crocs’ core
competencies or defocus them? Not at all.
Crocs
Crocs Supply Chain vs. Traditional Supply Chain
· In the traditional supply chain in the shoe industry, most
companies would try to project how much to produce and have
orders placed way in advance
· This often resulted in too little or too much inventory
· Traditional supply chains are also much more complicated
because there is a different company involved with each stage

5. of production
· There is less flexibility and is more costly due to time
constraints
· http://crackmba.com/traditional-vs-new-supply-chain-models/
· Crocs wanted to take a different approach where they get their
product to customers when they needed it, and react to changes
quickly
· In order to do this, they needed to take over the supply chain
and gain control over all areas of production
· They bought out Foam Designs to take over manufacturing
· They used contract manufacturers over seas to expand
globally, not all of them worked, but one example that did was
China because they were able to quickly adjust to changes in
demand and production
· They also took over the compounding process and created
their own facilities in Canada, China, and Mexico. This gave
them more flexibility as opposed to having an outsider in Italy
do the compounding
· They also added warehousing to their factories to
accommodate large retailers who placed orders more in bulk and
at a much higher volume, but kept warehouse in Colorado for
smaller retailers
· Since they also controlled production at a global level, they
could produce in areas with lower tariffs to lower costs
· They created a database that allowed them to see their
inventory globally in order to plan how much to produce and
meet customer demands
·
https://smehro.files.wordpress.com/2008/11/supplychainpresent
ationundp-accenture.pdf
Quality Control
Quality control= the stabilization and maintenance of a
transformation process to produce consistent output

6. Crocs production process:
Raw materials (chemicals) purchased in pellet form
Compounding
Add color dyes
Injection molding (requires injection molding machines and
molds for each style and size)
Assembled (may involve gluing or stitching if using leather,
canvas or materials)
Tagged and place into boxes
Quality Control System
Inspections take place at critical points:
1. Before production (raw materials)
2. During production
-Process quality control takes place, which involves statistical
process control. Periodic samples are taken from a continuous
production, as long as sample measurements fall within the
control limit the production will continue. However, if the
samples fall outside the control limits, the process is stopped
and a search is made for an assignable cause. In this case, the
process will use a quality control chart known as an attribute
control chart. The whole purpose is to find the natural random
variability in the output oppose to unnecessary variations. The
company must maintain that natural random variability to be
under statistical control
3. After production
Process Capability
Process capability is assessed once the process is under
statistical control. It is the ability of the process to meet or
exceed customers’ specifications. Process capability is
determined by using the process capability index.

7. Continuous Improvement
Through the process capability assessment, the company can
determine which processes should be improved in which case
they would use several tools. The seven tools include:
Flow chart
Check sheet
Histogram
Pareto Chart
Cause & effect
Scatter diagram
Control chart
The tools make it possible to reduce defects and improve
quality, but they also have to be incorporated into an
improvement approach. This would be Six Sigma:
1. Define: a process is selected for improvement and a cross-
functional team is form
2. Measure- with the use of measures that are critical to the
customer, the team begins improvement by flowcharting the
process and defining process defects
3. Analyze- the team seeks the root causes of the current
identified and alternatives are considered
4. Improve- improvements are made
5. Control – a control plan is put in place to ensure that changes
are permanent
*
Case Study
Due Novembeer 4, 2015
MGMT 339 Process & Operations Management

8. *
*
Presentation Schedule
Group A _____
Group B _____
Group C _____
Group D _____
Presentation Dates
11/4, 11/11, 11/18, 11/25, 12/2
Report due 11/4
*
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MGMT 339 Case StudyEach Group will be assigned a case
study for detailed analysis. The team is expected to cooperate
in researching, defining, analyzing, and preparing a written plan
of at least 6 pages, but not to exceed 8 pages. Any appendix or
references are not included in the page count. The report will
be submitted both electronically and on paper.
The Group will also need to present their results to the class
using visual aids. The presentation should not last over 10

9. minutes and the following Q&A period should not last over an
additional 5 minutes.
The Report and the Presentation will have a Peer Review
*
*
MGMT 339 Case Study
Answering questions that may be attached to the case study does
NOT constitute the solution (they will probably be included in
the analysis). It is usually beneficial to include real-life work
experiences to explain a concept in the project. Note that there
is no single, universally accepted approach - the team may make
assumptions that change the solution if facts are not present.
*
*
Case Study Assignments
Groups A & C will have Crocs: Revolutionizing an Industry’s
Supply Chain Model for Competitive Advantage
Groups B & D will have Pyrex
*

10. *
Case Study ApproachA good approach to all case studies -- if
this were your company (or pretend you are a consultant making
$500 an hour) what would you do.
In the “real world,” managers seldom have time for long reports
typically generated in some college courses. Your first page
should contain all essential information, and the remaining 5-7
pages supporting summaries. Any appendixes can be attached.
Including real life examples (like in The Goal) can make
understanding easier. Graphs & charts are much easier and
quicker to convey information that paragraphs of writing.
(Examples from The Goal would be good to use.)
*
*
Crocs Group Case Study Analysis - CrocsYour Case Study can
be found on pages 492 though 503 in the text, Crocs:
Revolutionizing an Industry’s Supply Chain Model for
Competitive Advantage.
Provide outside examples.
This Case Study should include:Time cycle analysis, customer
expectationsPerformance analysis, measurement
systemsAlternate process solutions, global
considerationsTraditional supply chain vs Crocs
perspectiveQuality management & control with high growth
Note that some of this information is in future Chapters in the
text

11. *
*
Crocs: Revolutionizing an Industry
These are questions included in the text that probably
should be part of your analysis, but does not constitute your
report.
What are Crocs core competencies.
How do they exploit these competencies in the future?
How do the Crocs core competencies fit with alternatives in
question 2.
How should Crocs plan its production & inventory. How are
gross margins affected?
*
*
Group Case Study Analysis - PyrexYour Case Study can be
found on pages 510 though 515 in the text, Pyrex
Provide outside examples.
This Case Study should include:Time cycle analysis, customer
expectationsPerformance analysis, measurement
systemsAlternate make-buy solutions, global
considerationsTraditional supply chain vs Pyrex

12. perspectiveQuality management & control labor
concernsIntellectual property & tariff concerns
Note that some of this information is in future Chapters in the
text
*
*
Pyrex
These are questions included in the text that probably
should be part of your analysis, but does not constitute your
report.
What are the pros and cons of continuing production at the
Charleroi plan.
What downside might there be with offshore outsourcing
production of the Pyrex product line to overseas suppliers
If the recommendation is offshore, what issues have to be
addressed with the Charleroi plant.
Contrast this situation with issues in The Goal.
*
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*

13. *
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