PULSU for conversion costs. 5. Even the Best Have to Get Better Luxury-goods manufacturers used to consider stock outs to be a good thing. But recently, Louis Vuitton, a French manufacturer of high-end handbags, wallets, and suitcases, changed its attitude. The company adopted "lean" processes used by car manufacturers and electronics companies to speed up production of "hot" products. Work is done by flexible teams, with jobs organized based on how long a task takes. By reducing wasted time and eliminating bottlenecks, what used to take 20 to 30 workers eight days to do now takes only 6 to 12 workers one day. Other efforts included organizing 10-person factory teams into U- shaped clusters. This arrangement freed up floor space, allowing Louis Vuitton to hire 300 additional employees. The company also selectively employs robots to bring items to human workers, saving valuable time. In addition, computer programs are now used to identify flaws in leather skins, enabling the company to identify the best way to cut pieces from the leather to increase quality and minimize waste. Finally, Louis Vuitton stores around the world feed sales information to the company's headquarters in France. Production is then adjusted accordingly to ensure that would-be buyers aren't left empty-handed. With these new production processes, Louis Vuitton is already seeing improved results-returns of some products are down by two- thirds. Q. What are some of the steps that this company has taken in order to ensure that production meets demand? 3 Points