READ CASE

Case: The Tao of Timbuk2* “Timbuk2 is more than a bag. It’s morethan a brand. Timbuk2 is a bond. To its owner, a Timbuk2 bag is adependable, everyday companion. We see fierce, emotionalattachments form between Timbuk2 customers and their bags all thetime. A well-worn Timbuk2 bag has a certain patina—the stains andscars of everyday urban adventures. Many Timbuk2 bags are worndaily for a decade or more, accompanying the owner through allsorts of defining life events. True to our legend of‘indestructibility,’ it’s not uncommon for a Timbuk2 bag to outlivejobs, personal relationships, even pets. This is the Tao ofTimbuk2.” What makes Timbuk2 so unique? Visit its website atwww.timbuk2.com and see for yourself. Each bag is custom designedby the customer on its Website. After the customer selects thebasic bag configuration and size, colors for each of the variouspanels are presented; various lines, logos, pockets, and straps canbe selected so that the bag is tailored to the exact specificationsof the customer. A quick click of the mouse and the bag isdelivered directly to the customer in only two days. How does it dothis? This San Francisco–based company is known for producinghigh-quality custom and classic messenger bags according to thecustomer’s personally customized order, using a team ofapproximately 25 hardworking cutters and sewers. Over the years, ithas fine-tuned its plant’s production line to make it as efficientas possible, while producing the highest-quality messenger bagsavailable. The local manufacturing is focused on the custommessenger bag. For these bags, orders are taken over the Internet.The customers are given many configuration, size, color, pocket,and strap options. The bag is tailored to the exact specificationsof the customer on the Timbuk2 assembly line in San Francisco andsent via overnight delivery directly to the customer. Recently,Timbuk2 has begun making some of its new products in China, whichis a concern to some of its long-standing customers. The companyargues that it has designed its new products to provide the bestpossible features, quality, and value at reasonable prices andstresses that these new products are still designed in SanFrancisco. Timbuk2 argues that the new bags are much more complexto build and require substantially more labor and a variety of veryexpensive machines to produce. It argues that the San Franciscofactory labor cost alone would make the retail price absurdly high.After researching a dozen factories in China, Timbuk2 found onethat it thinks is up to the task of producing these new bags. Muchas in San Francisco, the China factory employs a team ofhardworking craftspeople who earn good wages. Timbuk2 visits theChina factory every four to eight weeks to ensure superior qualitystandards and working conditions are met. On the Timbuk2 website,the company argues it has the same hardworking group of bagfanatics designing and making great bags, and supporting the localcommunity and the increasingly competitive global market. page41The company reports that demand is still strong for the custommessenger bags made in San Francisco and that the new laptop bagssourced from China are receiving rave reviews. The additionalbusiness is allowing it to hire more people in all departments atthe San Francisco headquarters, creating even more jobslocally.

Answer the following...

1. Try to come up with a problem statement to write the case.Note: this case isn’t as clear as to what the “problem” is, buttake a shot. See the “case guideline” document for info on theproblem statement

2. Compare the China operations and San Francisco using some ofthe key operations dimensions listed in the case questions, and anyother you feel would be appropriate

3. What recommendations would you make based on the limitedinformation in the case? (hint: your recommendation should answerthe problem statement, think about recommendation options such asremain the same, move manufacturing all onshore, move manufacturingall offshore…