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Erik, you raise many excellent points. I outlined the core idea, the
plan is in the details. Some thoughts on what you have said.
> Ian, I think you started off on the right premise--we're all guessing. But then
> you go on to assert that your scheme would be cost-effective. What makes you so
> sure? You've set forth a tidy scheme, but the numbers are still an unknown.
> Can be it left unattended? It's a linear assembly line, what about other
> topographies? Airports do more complicated routing of baggage. Have you tackled
> the permutations of parts and colors and customers? Brad has always indicated
> that selection will be limited and seasonal. Maybe you should run some computer
> simulations.
Erik, if TLC has production lines than currently run unmanned, there
is no reason a different organization of those counting machines (by
weight or mechanically) cannot operate in the same manner.
You're right about topography. I have given this some thought after
my initial posting. Ideally you would have more than one line of
traveling transport bins. Call them primary and secondary lines for
arguments sake.
The primary production lines would contain counting machines for all
major bricks and plates in the most common colors. These machines
would be fed from very large hoppers refilled by dedicated injection
molding machines that stamp out the required volume of parts (best
estimate on ever evolving sales data) on a near continuous basis.
Always remember that any of these lines can fill orders for customized
bulk purchases as well as fill bins that will end up in a LEGO set.
So this line is filling all custom bulk purchase orders in addition to
orders like the 1200 pc buckets, and bags of the most common pieces
found in every single Lego set on the shelves.
It's all about computerization and bin tracking. Making sure
everything ends up where it belongs.
In the case of LEGO's sets where they project the total number of
units that will be warehoused and then shipped worldwide to the
retailers, TLC already manufacturers huge runs of a single set at one
time for warehousing and distribution.
So while this line is pumping out all the common pieces for the set or
sets currently being manufactured, it can do double duty filling bins
with common parts for the bulk purchase buyers.
The bins containing set contents are dumped into bags, sealed and
dropped into boxes on the set production line. The bins containing
bulk purchase parts also get bagged, and dropped into boxes, but these
head for the door if nothing else needs to be added from the other
production lines making less common parts.
The remainder of the pieces for sets will come from the secondary
lines that are producing all the elements and colors needed by your
set production run. The secondary lines operate in the same manner as
the primary lines, with the exception that you often change to
different colors and molds as needed.
These lines require more human intervention to change the molds and
colors whenever necessary to meet the demands of the remaining parts
that must go into the set or sets currently being produced.
This is no different that what happens now. TLC only has so many
injection molding machines and counters. Some counters would be fed
directly by the injection machines. Others would be fed from hoppers.
These hoppers of less common elements and colors would be produced by
another set of injection machines filling hoppers for short and long
term warehousing.
TLC wants to avoid changing molds as long as possible. Every time
that's done the injection machine must be purged, cleaned and the
molds changed. That is a lot of down time.
Therefore, you produce fairly large quantities of uncommon parts and
store them till needed on the set production runs.
When these elements are needed for sets, these hoppers are dumped or
placed above any available counters on the secondary lines.
The custom bulk purchasing orders of these less common parts are made
available while they are available on the secondary lines. As TLC
knows exactly what parts will be on these secondary lines being put in
bins for sets, these parts can be pre sold to bulk purchasers in the
weeks before these set productions make use of them.
Again, any bins containing parts for sets will get directed to the set
production line where they get bagged, and dropped in the set boxes
already containing other bags of common parts from the primary
production lines.
This set production line changes to a different set whenever TLC
manufacturers the desired quantity for warehousing and later
distribution.
The bins containing less common parts for the bulk purchasers get
bagged and dropped into the boxes with your common parts. They get
sealed, labeled, weighed, shipped and billed immediately.
The beauty of this system is that the contents of the bins can end up
in bags destined for sets or boxes for bulk sales.
This is a reorganization of TLC's production capabilities, not a
drastic change. The primary and secondary lines would operate at
maximum capacity just as the lines do now whenever possible.
There is nothing fundamentally wrong with the idea as outlined.
> In "The Ultimate Lego Book", there is some description of Lego's parts halls
> (and the need for only occasional workers on duty.) Have you read this book?
> It's not clear that you've taken advantage of it.
Yes, I have read what I can find. The parts halls you mention are the
storage of uncommon elements and colors produced for short periods and
warehoused till needed by another set currently being produced.
> I tried Dissertation Express at www.umi.com and although 5 dissertations used
> "Lego" in the title, none were about the company.
That is unfortunate.
> Keep in mind that Lego is not that big a company. It sells less than 10 billion
> krona! (more than $1B USD.) It's dwarfed by Hasbro! (US$4B) Why Lego doesn't
> (does it?) own the injection molding company? It would be a big risk tangential
> to their core business. They can't consume but a tiny fraction of the world's
> ABS molding machinery (consumer products are a mere 10% of worldwide ABS
> manufacture ***). Lego has already problems forecasting demand for its core
> brands.
> *** Source: _The Chemical Book_. Bear Stearns & Company. 2000. There is a lot
> of
> other good information in this book which I intend to bring up.
Fair enough. I don't know how many manufacturers are building
injection molding machines and counters. It just seemed reasonable to
assume that TLC would like to own one, or a controlling interest in
one.
> Here and now, Lego AS is making a small trial of bulk ordering. We don't know
> how much they must sell to prove the concept or break even. I suggest we order
> as much as we can afford from it to send a signal.
I agree to buy all those parts being offered at what I feel is a fair
price. The beauty of the above primary and secondary productions
lines is that they fill custom orders while producing sets. There is
no risk once you make the initial changes to handle custom bulk
purchases at the same time as set production.
> Finally, being a businessperson, and manager, you must have a better approach
> than demanding "lengthy responses" from strangers. We LUGNETters have time for
> all this uninformed debate, but just try to get 5 minutes of Mr. Justus' time
> with an approach like that?
I don't mean to demand anything. That was a poor choice of words. As
a customer I have the expectation that a manufacturer will sell me
products I desire if I agree that the price and quality is fair.
All I'm pointing out is the fact, that custom bulk orders can be
easily handled by the production facility I've outlined.
Set production is not affected at all.
The creation of the bulk purchase web site is the most costly and
difficult part of the job and must be done right.
> -Erik
> just another engineer hired out to Wall Street
What do you do Erik, if I may ask?
> P.S. What's the cost per ton of ABS these days? A homework assignment.
Perhaps, you can tell me? I can find out though...
<ICS>
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Message has 1 Reply:
 | | Re: Bulk Sales in the 21st Century
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| Ian Sinclair <sinclair@cadvision.com> wrote in message news:39643b6f.527169...ion.com... (...) Maybe that is the case, but I've seen one report that the facilities they use are fed from a set of huge silos containing raw ABS materials in different (...) (24 years ago, 6-Jul-00, to lugnet.lego.direct, lugnet.general)
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Message is in Reply To:
| | Re: Bulk Sales in the 21st Century
|
| (...) Ian, I think you started off on the right premise--we're all guessing. But then you go on to assert that your scheme would be cost-effective. What makes you so sure? You've set forth a tidy scheme, but the numbers are still an unknown. Can be (...) (24 years ago, 6-Jul-00, to lugnet.lego.direct, lugnet.general)
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