Loewe Case Study

What was one of the key disadvantages of fully outsourcing Loewe's production?

• a) Increased manufacturing flexibility

• b) reduced dependency on suppliers

• c) loss of manufacturing expertise and know-how

• d) higher control over product quality

Before the implementation of lean management, what was a major issue in the Getafe factory?

• a) too many product lines

• b) long lead times and bottlenecks in assembly

• c) low-quality materials from suppliers

• d) a lack of retail distribution channels

What key lean manufacturing principle was introduced in the Getafe factory to improve efficiency?

• a) just-in-time (JIT) production and a pull system

• b) increasing batch sizes for greater economies of scale

• c) implementing 24-hour shifts to increase output

• d) outsourcing assembly operations to multiple suppliers

How did Loewe redefine the role of supervisors in the new factory model?

• a) they became responsible for assembling handbags themselves

• b) they focused on solving quality issues and monitoring productivity metrics

• c) they were eliminated and replaced with automated systems

• d) their role was reduced to only tracking absenteeism

What was a key cultural change implemented in the Getafe factory?

• a) reducing the number of employees to streamline operations

• b) encouraging employee cross-training and communication through regular meetings

• c) outsourcing leadership roles to external consultants

• d) eliminating too many, unnecessary quality control processes in order to speed up production

What was one of the key financial benefits of the transformation at Getafe?

• a) leather waste reduced by 30%

• b) labour costs were reduced by around 50%

• c) suppliers took over all production expenses

• d) the company eliminated all storage costs

Before implementing lean management, the factory in Getafe operated with a pull system.

• False

• True

One of the key improvements in the factory transformation was the introduction of work cells in assembly.

• False

• True

The new factory model focused on increasing product typologies instead of reducing them.

• False

• True

The decision to keep manufacturing in-house was based purely on cost savings.

• False

• True