BUS 3750
Orange County Choppers
Group #25
Dave Stella
Sean Jagels
Mehtab Ali Rahim
Chris Sayles
Jeff Kohler
While our group watched Orange County Choppers work on the Liberty Bike we came up with several different ideas on how the company could improve its efficiency. As a group we came to the conclusion that OCC should custom fabricate everything they are capable of, and they should only outsource items that the firm cannot produce. We believe that the OCC main core competency is their ability to custom fabricate parts for their unique choppers.
OCC needs to take cautious care when they’re selecting suppliers for parts that they do need to outsource. Many things need to be considered when they are selecting suppliers. We think that OCC should not decide on cost alone, they should attempt to find suppliers that are consistent and ones they know they can form long standing relationships with. If OCC uses these following processes when selecting their suppliers, they should be able to remain one of the top custom bike builders in the world.
When watching the owners of OCC, Paul Jr. and Paul Sr., argue about the production of the fuel tank, we decided that this is something that definitely needed to be made in-house. They ended up deciding to outsource the fuel tank, and many problems arose. First the tank came in with the wrong specifications, and it had to be reproduced, which cost them valuable time. When the new tank came back, it was out of pure luck that the tank fit perfectly. If OCC would have in housed the fuel tank like Paul Sr. wanted, all of these problems could have been easily avoided.
The second issue that OCC had to deal with was the exhaust system. They decided to outsource the exhaust system from the Martin Brothers organization. Though the Martin Brother’s is a quality supplier, the communication between them and the OCC caused a major problem. The exhaust came in, but it was too small and it didn’t fit around the drive train. Whatever products OCC decided to outsource we think they need to work on keeping better communication lines with their partners.
Another issue that OCC has is their lack of good inventory control system. Inventory control is vital to any businesses success and must not be taken lightly. Parts were sent out the painter and the copper plater, when the parts came back they realized that several of them were missing. Although they were lucky to find all the pieces, the loss of time is invaluable. If OCC wants to remain a strong competitor in the market they need to develop a more efficient inventory control system.
It’s clear that time management is another major issue at Orange County Choppers. Meeting deadlines is essential for OCC and managing time wisely is the only way to meet those deadlines. During the production of the Liberty Bike there was far too much employee downtime. We feel that a production schedule needs to be implemented at the beginning of each project. This way the members of OCC will be able to stay on task, and be able to meet deadlines.
Both internal and external communication is a huge problem at Orange County Choppers. For instance, when Paul Jr. went to the doctor there was confusion in the shop. He didn’t notify anybody of where he was going and thus production of the bike was greatly slowed. The lack of effective communication between Paul Sr. and Paul Jr. is another critical issue that OCC needs to address. With them constantly arguing it not only affects Paul Jr.’s work but it also affects everyone else in the shop. Externally, OCC’s lack of communication is the reason many of their parts didn’t arrive from suppliers as expected. Parts were either late or they were the wrong specifications all together. Good communication is essential for Orange County Choppers to remain competitive in their market.
In conclusion, we believe that Orange County Choppers’ core competency is their ability to custom manufacture unique parts for choppers. In order for OCC to continue to be a world class chopper manufacturer they need to focus on their core competency and try to grow it. Along with focusing on their core competency, we feel that if OCC would take into consideration some of our recommendations they would be must more efficient and profits and productivity would increase.
