The Wedgeys Inc.

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

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

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

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

5. Location Options Atlanta, GA San Marcos, TX Space: 20,205 SF Rental Rate: $9.90 Per Square Foot Per Year Total: $200,029.50 Las Vegas, NV • Space: 26,000 SF • Rental Rate: $11.23 • Per Square Foot • Per Year • Total: $291,980.00 • Space: 27,500 SF • Rental Rate: $10.83 • Per Square Foot • Per Year • Total: $297,825.00

6. Factor Rating Diagram

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

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

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

10. Supply Chain • 3rd party logistics (UPS) will handle delivery between • Manufacturer and retailer • Manufacturer and customer (custom orders only)

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

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

13. Facility Dimensions

14. 1. Raw Materials are received2. Stainless steel is molded in machines for club heads3. Extenders are made4. Shafts are formed, then sanded, cut, and painted5. Custom grips are placed in shafts6. Shaft, extenders and head are attached, coated and packaged

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

17. 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

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

19. “Team” Approach • 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 • Sales and marketing team • Customer service team • Research and development team • Representative of each team reports to administrative team daily

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

21. Thank You! Questions?