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+ Group 8 Names omitted for anonymity Project 3 Product, Process, Layout Decisions For Project 3 we observed the processes, layout, and products of Build-A-Bear, Workshop. We opted to go with a company in the Retail industry over the Fast Food industry to challenge ourselves to see the differences between the two industries. 2 Table of Contents Company Information Product Decisions Process Decisions Layout Decisions Conclusion 3 + Company Information BUILD-A-BEAR HISTORY Founded : Industry: Founder: Bearquarters: Stores: Employees: Slogan: Revenue: 1997 Retail Maxine Clark Overland, Missouri 313 US Stores 70 Franchised International 900 Full-Time 3,300 Part-Time “Where Best Friends Are Made!” $392.35 Million 5 Why is it Important? The number of children in America between the ages of 6-11 is 24.6 million! YOU may want or may already have kids. Build-A-Bear adheres to all toy safety standards and uses high quality materials. 6 Supply Chain Location 7 Supply Chain Materials, Technology 8 + Product Decisions Product Offerings Width 3 Product Lines Stuffed 3 Product Lines Animals Stuffed Animals Clothing Clothing Accessories Accessories 10 Product Offerings 11 Length Stuffed Animals Bears Bunnies Lines 3 Product Cats Stuffed Dogs Animals Dinos Clothing Wild Furry Friends Accessories Baby Plush Web Exclusives Limited Edition Clothing Accessories Tops Clothing Bottoms Tops Costumes Bottoms Outfits Costumes Outfits Dresses Dresses Uniforms Uniforms Foot Wear Head Wear 3 Product Lines Eye Wear Stuffed Scents Animals Sounds Clothing Bags Accessories Other Accessories Product Offerings 12 Depth Clothing Stuffed Animals Bears-19 3Product Lines  Bunnies-4 Stuffed  Cats-4 Animals  Dogs-8  Dinos-9 Clothing  Wild Furry Friends-5 Accessories  Baby Plush-27  Web Exclusives-13  Limited Edition-37       Tops-181 Clothing Bottoms-28 Tops Bottoms Costumes-69 Costumes Outfits-72 Outfits Dresses -38 Dresses Uniforms-136 Uniforms Accessories Foot Wear-86 3 Product Lines  Head Wear-11 Stuffed  Eye Wear-12 Animals  Scents-10  Sounds-25 Clothing  Bags-30 Accessories  Other Accessories-30 Lifecycle Build-A-Bear’s company life cycle we believe is continuous. Teddy bears and stuffed animals are toys that kids and parents will always want for their kids. But since technology has become such a huge factor we believe that added on with the bears and other stuffed animals they will add a technology aspect to their products. Possibly having a web site where kids can go online and play virtually with their bears that they created in store with kids around the world. As for the Bear or other stuffed animal that children and parents can build at Build-A-Bear the lifecycle is pretty long. They are durable, washable, and the parts like the voice boxes and hearts can be replaced if their batteries die out. If the stuffed animal is taken care of and maintained we believe the bear could last 100+ years if maintained properly. 13 14 Product Lifecycle Introductory Maturity Growth Decline Maturing product in a slowing industry In 2009, Sales of toys & games declined by nearly 3% from the prior year. As you can See Build-A-Bear is it its stage of Maturity and unfortunately will begin to decline since its already hit its maturity stage, but there’s always ways companies can increase their lifecycle Customization Decision Assemble to Order / Custom Customers are able to pick out their favorite bear or stuffed animal. Then they are able to stuff the “fur friend” or just take the skin home. They have the choice of picking a heart and a possible voice box that says “I love you” and other sayings such as that. Then after the customer has chosen their custom bear or stuffed animal then they are able to name it and create a birth certificate for it. Last but not least the customer is able to create an outfit for their new toy everything from princess costumes, sports jerseys, to sleepwear. The customer leaves the store with their own personal stuffed animal made by them totally customizable. 15 Product Drawings Autocad, Production  Build-A- Bear is not only a company that produces Custom Bears, but they also provide other stuffed animals like mentioned in the Depth portion. 3 Product Lines  The basic construction the stuffed animals is Stuffed Animals really just the skin then later in the store the Clothing customer can fill it with fluff and give it life Accessories  The product does not necessarily come with packaging each customer can pick out the Bear’s outfit and they all leave the store in a house shaped box 16 + Process Decisions Flow Chart 18 Process Strategy Retail Location The process focus in the retail location is Intermittent. Customers have the ability to customize the production of their “fur friends”. Each piece of the “fur friend” is selected by the customer. Type of bear Firmness/Softness of bear Sound Clothing Name 19 + Layout Decisions Retail Layout Product Layout The current in-store layout consists of a series of fully-interactive bear-making workstations where guests personalize their own stuffed animals. For an individual guest the stuffed animal-making process begins with the guest choosing the bear-skin, followed by a kiosk to choose a sound. Next is stuffing their bear to their liking with the “hug test” then the inserting of a heart before being stitched. Afterwards a guest has a chance to groom their new friend with a brush under an air-blower. Then there is a naming session which generates a birth certificate followed by an outfit and accessory shopping experience to dress their new friend. Lastly is taking their new friend home in their own condo. 21 Product Process 22 Retail Location 1 2 3 4 5 6 7 8 Each experience of making a bear is led by a Bear Guide, an employee that helps each guest through each step • Step 1: there are no bottle necks because the open-store format has several bins where guest could pick out their “friend” • Step 2: is a quick visit to decide a sound for their new “friend”, which can be skipped considering it’s an additional cost • Step 3: is the fluff machine with 2 hoses available to stuff the bears. This is the bottleneck because with a large group/party, you wouldn’t want to make them wait. Build-A-Bear Workshop has a strong operational strategy which focuses on the customer and the bear-making experience. During the bottleneck, Bear Guides initiate a game to play while they wait. The waiting feels less of a burden if your engaged in something interesting or entertaining. • Step 4: is in conjunction with the previous step, because at this time, the bear guide includes the “coming to life” experience when the guest selects a heart, whispers a wish and seals it with a kiss • Step 5: is a fun grooming session for the guest • Step 6: varies for every child, because at this time the child choses the outfit for their new bear. The more customized you make your bear the more the cost will increase. • Step 7: is a kiosk session to allow the guest to name their bear which generates a birth certificate • Step 8: is taking their new “friend” home in their condo Bottleneck 23 Retail Location Current Product Process Assembly Line Balancing It’s open store format allows most of these steps to move freely within the store without a delay in the assembly process, however, an organized flow Clothing would be required by combining steps into Tops workstations that line Bottoms balancing would be Costumes necessary to achieve Outfits efficiency. Dresses This area is the bottle neck Uniforms because this work station only has 2 hoses to stuff each fur-animal. In the case of a large birthday party this will hold up the process. For example when a large birthday party arrives the bear guides may divide the group and have one group choose the bear-skin and a voice box and the other would be choosing its outfit and accessories all of while creating conversations engaging the guest by asking what are they going to name their new friend to prepare them for the naming kiosk session when generating the birth certificate. 3 Product Lines Stuffed Animals Clothing Accessories Line Balancing Workstations 24 Retail Location Here is workstation 1 set up for a birthday party group where GROUP 1 will choose the bearskin and voice box with a cycle Clothing time of approximately Tops 15 min. Bottoms GROUP 2 will be choosing outfits and Costumes accessories which also has an approximately 15 Outfits min cycle time. Dresses The arrows represent the Uniforms reciprocal path a guest will take after the next workstation (fluff machine). At workstation Clothing2 is the fluff machine which has two (2) Tops hoses and has approximately Bottoms a 15min cycle time. This workstationCostumes will include the stuffing and the stitching Outfits which includes a “coming to Dresses life” experience when inserting the heart. Uniforms Lastly, workstation 3 is the naming kiosk that includes four (4) computer kiosks which consist of entering the guests personal information to allow a bear to be reunited with its owner if it ever gets lost. Upon all data input which takes up to 5 min. will complete the bear-making experience and lead to the cashier when the guest’s new friend leaves in it’s own carrying condo. 3 Product Lines Stuffed Animals Clothing Accessories Line Balancing 25 To Reduce Bottlenecks Task Performance Precedence Time (minutes) A *10 B 5 A C 10 B D 10 C E 5 D F 15 E G 5 F H – G Total time: 60 8 hours/day x 2 units = 16 *varies per child=approx. Cycle Time= Production time available per day Demand per day = 480/16 = 30 minutes per unit Minimum number of workstations = ∑ Time for task i Demand per day = 60/30 = 2 stations Operational Strategy 26 Build-A-Bear Workshop is a “magical place, where dreams (and stuffed animals) are made”. The interactive experience platform caters to the Build-A-Bear experience making it unique one, which differentiates them, gaining them a competitive edge because what they sell is the brand experience-not the product which makes them the leaders in the teddy-bear industry. Build-A-Bear Workshop’s operational strategy is supported by enthusiastic store associates that receive extensive training in customer communication and are taught the value of working effectively as a team. The training program at “Bear University” ensures every customer will receive excellent customer service. People choose to visit Build-A-Bear Workshop because they are happy thoughtful gifts. Not only is this enjoyable for the children but for the adults too! The parents witness the joy in their children’s face as their faces light up when building a bear marking it a wonderful memorable moment for the family. The variety of bear-skin collections attracts all members in the family including the adults who are kids at heart. This onea-kind experience results in ever-lasting memories resulting in loyal customers. + Conclusion Why Build-A-Bear? Build-A-Bear offers a unique, interactive experience for young children. Children feel invested in the toy, because they made it themselves. The number of children in the US between the ages of 6-11 is 24.6 million! That’s A LOT! Build-A-Bear is in the maturing stage of their lifecycle and will need to identify new, innovative ideas to reduce decline. There are multiple bottlenecks that occur in the flow of the workstations. Although, the suppliers and manufacturers operate a Mass Production Process Strategy, the Retail Locations operate a Intermittent – Assemble to Order Strategy. 28 + Questions? + Resources http://www.allfungames.org/wp-content/uploads/s/s-build-abear-gift-card-at-build-a-dino-build-a-bear-gift-cardkrogerbuild-a-bear-gift-card-balance-inquirywhere-can-i-buybuild-a-bear-gift-cardbuild-a-bear-gift-card-holderbuild-a-beargif.jpg http://sec.edgar-online.com/build-a-bear-workshop-inc/s-1securities-registration-statement/2004/08/12/section20.aspx http://www.stltoday.com/business/local/build-a-bear-ceoplans-new-store-layouts-more-licensing/article_8b7be942fc0a-5781-bcc3-85f223b0487a.html http://www.buildabear.com/shopping/workshop/The%20Story %20of%20Build-ABear%20Workshop/3100021/10100034;jsessionid=FFD28F5AB 1AE6FD50844F626867D01E3.bab-app-02-p-app2 http://www.hotstocked.com/companies/b/build-a-bearworkshop-inc-BBW-description-57354.html https://www.storage-solutions.com/build-a-bear-workshopstorage-solutions/ http://www.alibaba.com/product-detail/DIY12-bear-stuffingportable-machinelike_60170499945.html?spm=a2700.7724857.29.3.yGRBQe http://www.buildabear.com/shopping/info/Frequently%20Aske d%20Questions/3100006/10100007 + Group 8 Names omitted for anonymity Project 3 Product, Process, Layout Decisions For Project 3 we observed the processes, layout, and products of Build-A-Bear, Workshop. We opted to go with a company in the Retail industry over the Fast Food industry to challenge ourselves to see the differences between the two industries. 2 Table of Contents Company Information Product Decisions Process Decisions Layout Decisions Conclusion 3 + Company Information BUILD-A-BEAR HISTORY Founded : Industry: Founder: Bearquarters: Stores: Employees: Slogan: Revenue: 1997 Retail Maxine Clark Overland, Missouri 313 US Stores 70 Franchised International 900 Full-Time 3,300 Part-Time “Where Best Friends Are Made!” $392.35 Million 5 Why is it Important? The number of children in America between the ages of 6-11 is 24.6 million! YOU may want or may already have kids. Build-A-Bear adheres to all toy safety standards and uses high quality materials. 6 Supply Chain Location 7 Supply Chain Materials, Technology 8 + Product Decisions Product Offerings Width 3 Product Lines Stuffed 3 Product Lines Animals Stuffed Animals Clothing Clothing Accessories Accessories 10 Product Offerings 11 Length Stuffed Animals Bears Bunnies Lines 3 Product Cats Stuffed Dogs Animals Dinos Clothing Wild Furry Friends Accessories Baby Plush Web Exclusives Limited Edition Clothing Accessories Tops Clothing Bottoms Tops Costumes Bottoms Outfits Costumes Outfits Dresses Dresses Uniforms Uniforms Foot Wear Head Wear 3 Product Lines Eye Wear Stuffed Scents Animals Sounds Clothing Bags Accessories Other Accessories Product Offerings 12 Depth Clothing Stuffed Animals Bears-19 3Product Lines  Bunnies-4 Stuffed  Cats-4 Animals  Dogs-8  Dinos-9 Clothing  Wild Furry Friends-5 Accessories  Baby Plush-27  Web Exclusives-13  Limited Edition-37       Tops-181 Clothing Bottoms-28 Tops Bottoms Costumes-69 Costumes Outfits-72 Outfits Dresses -38 Dresses Uniforms-136 Uniforms Accessories Foot Wear-86 3 Product Lines  Head Wear-11 Stuffed  Eye Wear-12 Animals  Scents-10  Sounds-25 Clothing  Bags-30 Accessories  Other Accessories-30 Lifecycle Build-A-Bear’s company life cycle we believe is continuous. Teddy bears and stuffed animals are toys that kids and parents will always want for their kids. But since technology has become such a huge factor we believe that added on with the bears and other stuffed animals they will add a technology aspect to their products. Possibly having a web site where kids can go online and play virtually with their bears that they created in store with kids around the world. As for the Bear or other stuffed animal that children and parents can build at Build-A-Bear the lifecycle is pretty long. They are durable, washable, and the parts like the voice boxes and hearts can be replaced if their batteries die out. If the stuffed animal is taken care of and maintained we believe the bear could last 100+ years if maintained properly. 13 14 Product Lifecycle Introductory Maturity Growth Decline Maturing product in a slowing industry In 2009, Sales of toys & games declined by nearly 3% from the prior year. As you can See Build-A-Bear is it its stage of Maturity and unfortunately will begin to decline since its already hit its maturity stage, but there’s always ways companies can increase their lifecycle Customization Decision Assemble to Order / Custom Customers are able to pick out their favorite bear or stuffed animal. Then they are able to stuff the “fur friend” or just take the skin home. They have the choice of picking a heart and a possible voice box that says “I love you” and other sayings such as that. Then after the customer has chosen their custom bear or stuffed animal then they are able to name it and create a birth certificate for it. Last but not least the customer is able to create an outfit for their new toy everything from princess costumes, sports jerseys, to sleepwear. The customer leaves the store with their own personal stuffed animal made by them totally customizable. 15 Product Drawings Autocad, Production  Build-A- Bear is not only a company that produces Custom Bears, but they also provide other stuffed animals like mentioned in the Depth portion. 3 Product Lines  The basic construction the stuffed animals is Stuffed Animals really just the skin then later in the store the Clothing customer can fill it with fluff and give it life Accessories  The product does not necessarily come with packaging each customer can pick out the Bear’s outfit and they all leave the store in a house shaped box 16 + Process Decisions Flow Chart 18 Process Strategy Retail Location The process focus in the retail location is Intermittent. Customers have the ability to customize the production of their “fur friends”. Each piece of the “fur friend” is selected by the customer. Type of bear Firmness/Softness of bear Sound Clothing Name 19 + Layout Decisions Retail Layout Product Layout The current in-store layout consists of a series of fully-interactive bear-making workstations where guests personalize their own stuffed animals. For an individual guest the stuffed animal-making process begins with the guest choosing the bear-skin, followed by a kiosk to choose a sound. Next is stuffing their bear to their liking with the “hug test” then the inserting of a heart before being stitched. Afterwards a guest has a chance to groom their new friend with a brush under an air-blower. Then there is a naming session which generates a birth certificate followed by an outfit and accessory shopping experience to dress their new friend. Lastly is taking their new friend home in their own condo. 21 Product Process 22 Retail Location 1 2 3 4 5 6 7 8 Each experience of making a bear is led by a Bear Guide, an employee that helps each guest through each step • Step 1: there are no bottle necks because the open-store format has several bins where guest could pick out their “friend” • Step 2: is a quick visit to decide a sound for their new “friend”, which can be skipped considering it’s an additional cost • Step 3: is the fluff machine with 2 hoses available to stuff the bears. This is the bottleneck because with a large group/party, you wouldn’t want to make them wait. Build-A-Bear Workshop has a strong operational strategy which focuses on the customer and the bear-making experience. During the bottleneck, Bear Guides initiate a game to play while they wait. The waiting feels less of a burden if your engaged in something interesting or entertaining. • Step 4: is in conjunction with the previous step, because at this time, the bear guide includes the “coming to life” experience when the guest selects a heart, whispers a wish and seals it with a kiss • Step 5: is a fun grooming session for the guest • Step 6: varies for every child, because at this time the child choses the outfit for their new bear. The more customized you make your bear the more the cost will increase. • Step 7: is a kiosk session to allow the guest to name their bear which generates a birth certificate • Step 8: is taking their new “friend” home in their condo Bottleneck 23 Retail Location Current Product Process Assembly Line Balancing It’s open store format allows most of these steps to move freely within the store without a delay in the assembly process, however, an organized flow Clothing would be required by combining steps into Tops workstations that line Bottoms balancing would be Costumes necessary to achieve Outfits efficiency. Dresses This area is the bottle neck Uniforms because this work station only has 2 hoses to stuff each fur-animal. In the case of a large birthday party this will hold up the process. For example when a large birthday party arrives the bear guides may divide the group and have one group choose the bear-skin and a voice box and the other would be choosing its outfit and accessories all of while creating conversations engaging the guest by asking what are they going to name their new friend to prepare them for the naming kiosk session when generating the birth certificate. 3 Product Lines Stuffed Animals Clothing Accessories Line Balancing Workstations 24 Retail Location Here is workstation 1 set up for a birthday party group where GROUP 1 will choose the bearskin and voice box with a cycle Clothing time of approximately Tops 15 min. Bottoms GROUP 2 will be choosing outfits and Costumes accessories which also has an approximately 15 Outfits min cycle time. Dresses The arrows represent the Uniforms reciprocal path a guest will take after the next workstation (fluff machine). At workstation Clothing2 is the fluff machine which has two (2) Tops hoses and has approximately Bottoms a 15min cycle time. This workstationCostumes will include the stuffing and the stitching Outfits which includes a “coming to Dresses life” experience when inserting the heart. Uniforms Lastly, workstation 3 is the naming kiosk that includes four (4) computer kiosks which consist of entering the guests personal information to allow a bear to be reunited with its owner if it ever gets lost. Upon all data input which takes up to 5 min. will complete the bear-making experience and lead to the cashier when the guest’s new friend leaves in it’s own carrying condo. 3 Product Lines Stuffed Animals Clothing Accessories Line Balancing 25 To Reduce Bottlenecks Task Performance Precedence Time (minutes) A *10 B 5 A C 10 B D 10 C E 5 D F 15 E G 5 F H – G Total time: 60 8 hours/day x 2 units = 16 *varies per child=approx. Cycle Time= Production time available per day Demand per day = 480/16 = 30 minutes per unit Minimum number of workstations = ∑ Time for task i Demand per day = 60/30 = 2 stations Operational Strategy 26 Build-A-Bear Workshop is a “magical place, where dreams (and stuffed animals) are made”. The interactive experience platform caters to the Build-A-Bear experience making it unique one, which differentiates them, gaining them a competitive edge because what they sell is the brand experience-not the product which makes them the leaders in the teddy-bear industry. Build-A-Bear Workshop’s operational strategy is supported by enthusiastic store associates that receive extensive training in customer communication and are taught the value of working effectively as a team. The training program at “Bear University” ensures every customer will receive excellent customer service. People choose to visit Build-A-Bear Workshop because they are happy thoughtful gifts. Not only is this enjoyable for the children but for the adults too! The parents witness the joy in their children’s face as their faces light up when building a bear marking it a wonderful memorable moment for the family. The variety of bear-skin collections attracts all members in the family including the adults who are kids at heart. This onea-kind experience results in ever-lasting memories resulting in loyal customers. + Conclusion Why Build-A-Bear? Build-A-Bear offers a unique, interactive experience for young children. Children feel invested in the toy, because they made it themselves. The number of children in the US between the ages of 6-11 is 24.6 million! That’s A LOT! Build-A-Bear is in the maturing stage of their lifecycle and will need to identify new, innovative ideas to reduce decline. There are multiple bottlenecks that occur in the flow of the workstations. Although, the suppliers and manufacturers operate a Mass Production Process Strategy, the Retail Locations operate a Intermittent – Assemble to Order Strategy. 28 + Questions? + Resources http://www.allfungames.org/wp-content/uploads/s/s-build-abear-gift-card-at-build-a-dino-build-a-bear-gift-cardkrogerbuild-a-bear-gift-card-balance-inquirywhere-can-i-buybuild-a-bear-gift-cardbuild-a-bear-gift-card-holderbuild-a-beargif.jpg http://sec.edgar-online.com/build-a-bear-workshop-inc/s-1securities-registration-statement/2004/08/12/section20.aspx http://www.stltoday.com/business/local/build-a-bear-ceoplans-new-store-layouts-more-licensing/article_8b7be942fc0a-5781-bcc3-85f223b0487a.html http://www.buildabear.com/shopping/workshop/The%20Story %20of%20Build-ABear%20Workshop/3100021/10100034;jsessionid=FFD28F5AB 1AE6FD50844F626867D01E3.bab-app-02-p-app2 http://www.hotstocked.com/companies/b/build-a-bearworkshop-inc-BBW-description-57354.html https://www.storage-solutions.com/build-a-bear-workshopstorage-solutions/ http://www.alibaba.com/product-detail/DIY12-bear-stuffingportable-machinelike_60170499945.html?spm=a2700.7724857.29.3.yGRBQe http://www.buildabear.com/shopping/info/Frequently%20Aske d%20Questions/3100006/10100007

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