The Wedgeys Inc. Claudia Garcia, Nadia Guerrero, Alex Kollaritsch

The Wedgey The purchase of one Wedgey golf club includes: One grip One grip Four extenders for shaft Four extenders for shaft One golf club head One golf club head Optional customized grip Optional customized grip

Core Competencies Strong research and development team Strong research and development team Recyclable materials for production purposes Recyclable materials for production purposes Use of graphite and stainless steel Use of graphite and stainless steel Customization of grips Customization of grips

Factors Relevant to Location Decision Proximity to customers – 30% Proximity to customers – 30% Proximity to source of supply – 18% Proximity to source of supply – 18% Proximity to sources of labor, expertise, etc. – 18% Proximity to sources of labor, expertise, etc. – 18% Site considerations – 15% Site considerations – 15% Community considerations – 10% Community considerations – 10% Quality of life issues – 9% Quality of life issues – 9%

Location Options Atlanta, GA Space: 27,500 SF Rental Rate: $10.83 Per Square Foot Per Year Total: $297, San Marcos, TX Space: 20,205 SF Rental Rate: $9.90 Per Square Foot Per Year Total: $200, Las Vegas, NV Space: 26,000 SF Space: 26,000 SF Rental Rate: $11.23 Rental Rate: $11.23 Per Square Foot Per Square Foot Per Year Per Year Total: $291, Total: $291,980.00

Factor Rating Diagram Location RanksLocation Scores FactorWeight Atlanta Las Vegas San Marcos Atlanta Las Vegas San Marcos Proximity to customers Proximity to sources of supply Proximity to sources of labor, expertise, etc Site Considerations Community Considerations Quality of life issues Total:

San Marcos, TX 631 Mill Street, San Marcos, TX 78666

Pre-Production Services Online custom web order Online custom web order Custom grip Custom grip Golf club design and testing Golf club design and testing Sales and marketing team Sales and marketing team Advertisement, social media, demos, etc. Advertisement, social media, demos, etc. Cross-train workers Cross-train workers Quality built from the bottom up Quality built from the bottom up Supplier agreements Supplier agreements

Post-Production Services Recycling program Recycling program Return of used Wedgey golf clubs to be recycled for future manufacturing Return of used Wedgey golf clubs to be recycled for future manufacturing Customers that utilize program will receive 10% off next Wedgey purchase Customers that utilize program will receive 10% off next Wedgey purchase 30-day money back guarantee 30-day money back guarantee Lifetime warranty (manufacturer defect) Lifetime warranty (manufacturer defect) Technical support (web and phone) Technical support (web and phone) Instruction manual Instruction manual Printed manual included with purchase Printed manual included with purchase Online video tutorials Online video tutorials

Supply Chain Customers Retailers: Big 5, Academy, Sports Authority, Dicks Sporting Goods Wedgey Manufacturing Facility San Marcos, TX Thermon Corp. Graphite supplier San Marcos, TX TAD Metals Steel supplier San Marcos, TX Capital City Upholstery Supply Rubber supplier Austin, TX 3rd party logistics (UPS) will handle delivery between Manufacturer and retailer Manufacturer and customer (custom orders only)

Supply Chain Effects on Location Decision Limiting transportation costs Limiting transportation costs Increasing throughput Increasing throughput Close to 3 cities with good golfing communities Close to 3 cities with good golfing communities Raw material suppliers within 30-mile radius Raw material suppliers within 30-mile radius

Manufacturing Process Hybrid Manufacturing Process Hybrid Manufacturing Process Process layout for grips Process layout for grips Grips are made based on design chosen by customer Grips are made based on design chosen by customer Product Line – repetitive and sequential Product Line – repetitive and sequential Shafts Shafts Extenders Extenders Club heads Club heads

Facility Dimensions Facility AreaSpace Required (square feet) Shipping and Receiving1,000 Club Head Casting and Assembly line area9,100 Extenders and Shafts2,250 Custom Grip Orders2,200 Accounting350 Research & Development725 Purchasing350 Sales850 Break Room900 Ladies Restroom340 Men’s Restroom340 Supervisor Office450 Storage Room1,350 Total20,205

1. Raw Materials are received 2. Stainless steel is molded in machines for club heads 3. Extenders are made 4. Shafts are formed, then sanded, cut, and painted 5. Custom grips are placed in shafts 6. Shaft, extenders and head are attached, coated and packaged

Output 3 minutes for club head casting 3 minutes for club head casting 30 seconds to make extenders 30 seconds to make extenders 4 minutes to make shafts 4 minutes to make shafts 2 minute for custom order grips 2 minute for custom order grips 30 seconds to take to assembly line 30 seconds to take to assembly line 1 minute for assembly 1 minute for assembly 1 minute for quality inspection 1 minute for quality inspection 12 minutes to make one golf club. 5 units/ hr

Overall Output 270 working days 8 hour workdays 20% Safety capacity 5 units/hr. 40 units/day Forecasted output: 10,679 Theoretical: 10,800 The plant capacity is 48 units per day yielding 12,960 units a year, allowing 20% safety capacity

Just-In-Time Improving quality Improving quality Quality at the source, provide immediate feedback, Jidoka Quality at the source, provide immediate feedback, Jidoka Eliminating waste Eliminating waste Utilize safety capacity, eliminate waiting time, employ a pull system Utilize safety capacity, eliminate waiting time, employ a pull system Respect for all people Respect for all people Cross-functional skills, decisions made from bottom up, flexible with breaks and holidays Cross-functional skills, decisions made from bottom up, flexible with breaks and holidays

“Team” Approach Production team made up of delegates from different steps in production process Production team made up of delegates from different steps in production process Shipping and receiving, club head, extenders, shafts, custom grips, and club assembly line Shipping and receiving, club head, extenders, shafts, custom grips, and club assembly line Sales and marketing team Sales and marketing team Customer service team Customer service team Research and development team Research and development team Representative of each team reports to administrative team daily Representative of each team reports to administrative team daily

“Team” Approach Bottom up decision making is promoted Bottom up decision making is promoted Using JIT method, workers inspect their own work Using JIT method, workers inspect their own work

Thank You! Questions?