Read the short Case Study 13-1: Wash & Dry, Inc. and answer the four (4) questions in complete detail in complete sentences – paragraph format.

CASE 13.1 Wash & Dry, lnc.

Wash & Dry (WD) is a small manufacturing company with annual revenues for 2015

reaching $10 million. Located in Bellefonte, PA, WD produces various types of laundry and

personal soaps as well as an array of paper products, such as paper towels and napkins. The

unique nature of WDs products have allowed it to grow from a start-up in 2010 with revenues

of $1 million to where it is today. WDs products are totally sustainable and command

a higher price than competitors in the markets they serve. Their products are sold through

both mass merchandisers as well as specialty retailers.

WD manufactures it products in two plants in Bellefonte: one dedicated to the soap line

and one to paper products. From these two plants, finished products are transported to

their distribution center located in Harrisburg, PA. From there, mixed shipments of soap

and paper are sent to the retailer distribution centers where they are sorted and mixed with

other products going to retail stores’

As a relatively small company, ¡ WD had a very unsophisticated set of key performance

indicators (KPIs). At the plant, the KPI was “did we make what we were scheduled to

make today” At the DC, the KPI was ‘did we ship what we were supposed to ship today.”

Although these two KPIs seemed to work in the past, WDs growth and pressure from its

retail customers for better service made it necessary for WD to consider developing a more

a comprehensive set of KPIs.

CASE QUESTIONS

l. If you were hired as a consultant to develop these KPIs for WD, how would you assess what KPIs they should be measuring? In general, what areas of service and cost would these KPIs address? Be sure to include both internal and customer KPIs’

2. What KPIs would you recommend for the manufacturing facility? why?

3. What KPIs should be used at the distribution center? Why?

4. How would you measure the revenue and profit impacts of these new KPIs?