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Neptune 9. Team Members Jessie Cunningham Michelle Hall Michael Hazen Aman Khaira Weston Smith. Technology and Quality at Steinway & Sons. Steinway & Sons. Founded 1853: 155 years of continuous operations World’s premier line of piano Extraordinary worldwide brad recognition
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Neptune 9 Team Members Jessie Cunningham Michelle Hall Michael Hazen Aman Khaira Weston Smith Technology and Quality at Steinway & Sons
Steinway & Sons • Founded 1853: 155 years of continuous operations • World’s premier line of piano • Extraordinary worldwide brad recognition • Unparalleled Concert & Artist Program • 97 percent of all concert pianists play Steinway instruments • Huge customer demand for the companies quality products
Issues & Concerns • Each Steinway Grand consists of over 12,000 parts, and assembled by over 300 craftsmen • It takes a year to build a Steinway Grand
Issues & Concerns • Pressure has been mounting from other piano makers such as Baldwin & Yamaha • Yamaha has a production line to produce their pianos, but Steinway believes their hands on production process produces a higher quality piano. • Yamaha actually wants to take human judgment out of the production process, while Steinway relies heavily on the human touch.
Issues & Concerns • The management team at Steinway are looking at ways to streamline the production process. • However, a production line is not something they are looking to do. • Steinway has acquired CNC machines to automate some of the more time consuming processes during piano production.
Alternatives The Manufacturing Process New Tools: Computerized drills Lasers Water-jets Computerized quality control Process design flow redesign Outsourcing
Purchasing process The Purchasing Process Resource Procurement: Lower Costs Outsource the Buyers Quality Control Inventory Savings Auction the Dealers Breed Competition Financial Hedging
Marketing Process The Marketing Process The 3-Tiered Marketing Plan Focus on Core Competencies Enhance current operations Expand Market Share New ways to market current products Expand into New Markets Develop new products Sell discarded material
RecommendationsComplex Support Part There are 88 keys in a piano A complex support part is used in each key Current process: Milling slot, then drilling hole Alternative process: Drilling hole, then milling slot Shaft Slot Pin Hole
Milling then Drilling Data 100 items sampled Mean: 0.200 inches Standard Deviation: 0.010 inches
Drilling then Milling Data 100 items sampled Mean: 0.200 inches Standard Deviation: 0.007 inches
Quality Control Analysis Milling then Drilling Drilling then Milling Recommendation: Drill Hole, then Mill Slot
Plan of Action • Management must establish clear and precise measures to implement alternatives and recommendations. • Steinway & Sons must react to the information that has been gathered and structure goals and achievements to measure to implementation. • Implement a solid communication channel to inform the company workforce about the successes and/or shortfalls as the implementations take place.
Plan of Action Management must establish clear and precise measures to implement alternatives and recommendations. Steinway & Sons must react to the information that has been gathered and structure goals and achievements to measure to implementation. Implement a solid communication channel to inform the company workforce about the successes and/or shortfalls as the implementations take place.
Conclusion • Steinway & Sons must take advantage of the skilled workforce it has to help implement technology changes. • Use the market demand for the companies product to continue to lead the way. • Be proactive with measures to beat their competition. • Continue to solid business that taken place over the past 155 years