Classic Clubs, Inc., manufactures professional golf clubs in a continuous manufacturing process. Demand has been so great that the company has built a special plant that makes only custom-crafted clubs. The clubs are shaped by machines but vary according to the customer’s sex, height, weight, and arm length. Ten basic sets of clubs are produced, five for females and five for males. Slight variations in machine setup produce the differences in the club weights and lengths.

In the past six months, several problems have developed. Even though a computer-controlled machine is used in the manufacturing process, the company’s backlog is growing rapidly, and customers are complaining that delivery is too slow. Quality is declining because clubs are being pushed through production without proper inspection. Working capital is tied up in excessive amounts of inventory and storage space. Workers are complaining about the pressure to produce the backlogged orders. Machine breakdowns are increasing. Production control reports are not useful because they are not timely and contain irrelevant information. The company’s profitability and cash flow are suffering.

Classic Clubs has hired you as a consultant to analyze its problems and suggest a solution. Denise Rodeburg, the president, asks that you complete your work within a month so that she can prepare a plan to present to the board of directors at the midyear board meeting.

1. In memo form, prepare a report for Rodeburg recommending specific changes in the manufacturing processes.

2. In preparing the report, answer the following questions:

a. Why are you preparing the report? What is its purpose?

b. Who is the audience for this report?

c. What kinds of information do you need to prepare the report, and where will you find it (i.e., what sources will you use)?

d. When do you need to obtain the information?