How long does it take to process a CS quote?

[Chameleonfong]

Re: How long does it take to process a CS quote?

Mentor,
Where did you find that graphic? Super coolness!

Fong

[BYeh1]

Re: How long does it take to process a CS quote?

+1

[BYeh1]

Re: How long does it take to process a CS quote?

OK, humor me, here's one last (hopefully condescendingly simple) [img]/images/graemlins/laugh.gif[/img] economics lecture for the day:

For illustrative purposes, let's assume that J/C CS has just 2 luthiers, Pablo and Mike, who can each build 50 CS guitars per year (1 per week). While in reality there are staggered build calendars (parallel processes vs. linear), lets assume for simplicity's sake its a linear custom production process, so 1 week to build from end-to-end. At a 12 month average lead time, this means new orders placed in the queue on any given day have 100 total orders ahead of them in the queue. So, with Pablo and Mike each working at a combined pace of 2 guitars per week, this works out to 50 weeks or about 1 year to work through the queue to build and ship a newly ordered CS guitar.

If management one day realizes its stupidity and actually goes and hires a master luthier (picks off someone from Carvin, GMW, McNaught, BC Rich, Bernie Rico Jr., whatever brand your heart pleases, lets call him "Lex", as in "Lex Luthier" ) who can build at equivalent quality and speed as our esteemed Pablo and Mike, then the CS production capacity now increases to 3 guitars per week, the 100 guitar queue suddenly gets worked through in just 33 weeks instead of 50 weeks, plus the CS can now sell an additional 50 guitars per year made by Lex (he rocks!)

Magic? I know it sounds impossible and reeks of voodoo, but the net results are:
1) a significant reduction to an 8 month lead time (so we're all much happier), and
2) CS generates $125,000 in additional revenue per year!!!

Assuming variable costs like wood, materials, parts, etc. are less than 40% of the selling price of a CS guitar (not a bad assumption that labor costs are usually the bigger cost component of building a CS guitar), the CS makes more profits as long as they pay Lex less than $75,000!!! And more importantly, they make customers happier!!!

These assumptions can be challenged and changed to reflect reality, but I promise you one thing, if the CS can make money with just 2 luthiers (or however many they actually have), with 12-18 month backlogs they can always make more money with 1 more luthier, and reduce overall production lead times to boot!

This little piece of economic voodoo, boys and girls, is called, say it with me, "ECONOMIES OF SCALE"

This economic principle is an inescapable reality of life, and yes, the laws of physics and ECONOMICS apply to even the mighty Jackson Charvel company, as godly and not-of-this-earth as they seem. Why the company doesn't seem to agree is a complete mystery, and one can only blame management (after all, you can't expect Mike and Pablo to be worrying about pedestrian matters like money when "its about guitars, man.")

Just to keep this discussion intellectually honest & fun, I'm offering extra credit in the form of $20 cash (you pay Paypal fees) to anyone who can convince me otherwise!

[img]/images/graemlins/smile.gif[/img]

[AK47]

Re: How long does it take to process a CS quote?

Its brand loyalty. Jackson prides them selves on original San DImas employess, you have to slowly work in a new luthier and he has to get into the swing of things, you cant just hire a whole bunch of them to cut down lead time. Also space availability. They are sharing a werehouse with Fender, why not just integrate them all together because you cant alienate your loyal customer base. Jacksons big bucks are coming from their regular clientel not new customers so you have to cater to them not the bottom line.

[eddyrox]

Re: How long does it take to process a CS quote?

[ QUOTE ]
Mentor,
Where did you find that graphic? Super coolness!

Fong

[/ QUOTE ]

Wassu!!! BTW, are you working towards an internship? Consulting? or Banking? How are the accounting and finance courses coming along?

Anyway, in the spirit of this new year (Chinese), my theme is lung (Chinese for dragon).....so, I'm going to "attempt" to get such a graphic on my RR.


Oh, and Mr. Fong, I've got yet another Suhr Standard dropping in March. Here's the BANGING top I picked out (and dinkyjacksonman have I got a dealer for you!!)

[img]/images/graemlins/headbang.gif[/img]

[eddyrox]

Re: How long does it take to process a CS quote?

BYeh1, honestly, I've sat through too many conferences and lectures touting the wonders of supply chain theory and cost accounting (and the related economic impacts of each) to argue the "merits" of what you've written. I've even had McKinsey and BCG, with their Ivy league egos and pedigrees, come into my office and spout off about the wonders of their 7S models and value-based engineering (product portfolio matrix in particular), respectively. At the end of the day, they neither understand nor respect what I do to "add value" to the community, my shareholders, or my partners.

And the same can be said for all of the prognosticating and pontificating you're/we're doing now. It's from an outsider's perspective, looking "in".

IMHO, I always tell the "kids" coming out of B-school, unless you "walk" or have "walked" in the shoes of your clients, then you're really nothing more than a highly paid (albeit well-educated) "know it all". Hey I know, I was one of "them" for 10 years before dumping financial services for industry. [img]/images/graemlins/what.gif[/img]

I submit that your posts are reminiscent of many of the attitudes and postures of the young associates, and newly minted MBA's who occupied our offices. Energetic, enthusiastic, and well-meaning, but without context.

Either way (for me), it's pencils down, test over. [img]/images/graemlins/eyes.gif[/img] [img]/images/graemlins/sleep.gif[/img]

[BYeh1]

Re: How long does it take to process a CS quote?

Excellent graphics, aren't you a few years off the CNY cycle with the Dragon?


[img]/images/graemlins/crazy.gif[/img]

[dinkyjacksonman]

Re: How long does it take to process a CS quote?

OMFG!!
Mike, please let me know about Suhr and wow! that Dragon and quilt Maple look killer!!!
[img]/images/graemlins/grin.gif[/img]

[RacerX]

Re: How long does it take to process a CS quote?

Yeah, man, it's Year of the Dog, right?



Arf!

[Scholomance]

Re: How long does it take to process a CS quote?

Mike, I'll just send you a PM about my stuff. That way I won't litter this thread with too much of my own details! And by the way, I meant no offense to guys who don't go wild with options. I like some basic, classic designs myself.

Scott

[BYeh1]

Re: How long does it take to process a CS quote?

ouch! Pontificating, yes, but without context? I'm embarassed by the the youth and inexperience revealed by my shallow analysis!
[img]/images/graemlins/wink.gif[/img]

Seriously, as an industry guy with 10+ years of experience, you honestly think 12-18 month build cycles for custom guitars are acceptable? 2 months just to get a quote right?

I'm no fancy management consultant, but from the posts on this board it appears anyone who's ever ordered from the CS has been unsatisfied with the wait (though guitars are great).

But hey, what the hell does the customer's opinion matter? Everyone (except the Ivy league MBA dorks) knows its industry insiders/management's opinion that matters, not the customer's!

$20 credit still up for grabs...

[BYeh1]

Re: How long does it take to process a CS quote?

BTW, that's a gorgeous quilt!

[xenophobe]

Re: How long does it take to process a CS quote?

[ QUOTE ]
[ QUOTE ]
Carvin won't build you ANYTHING you want. Jackson will.

[/ QUOTE ]

While I agree that Jackson has many more options, they will NOT build you ANYTHING you want. There are many things they won't do for a variety of reasons.

[/ QUOTE ]

Does Carvin offer custom neck backshapes, draw it yourself body styles, custom graphics, custom binding, any wood or electronics suggestions, even placement of controls, custom scale lenghts, custom # of frets? There's a LOT that Carvin doesn't do that Jackson does.


[ QUOTE ]

The Carvin comparisons are still pretty valid IMO though.

[/ QUOTE ]

Carvin makes a great cookie cutter guitar with the sprinkles you desire, but they're still far from custom, IMO. Comparing Carvin to the Jackson Custom shop isn't all that valid. Comparing them to USA Selects, but with more options is a more valid argument.

[hippietim]

Re: How long does it take to process a CS quote?

xeno - congratulations on not reading my post and then quoting it out of context. well done.

[BLOOD SPLATTER]

Re: How long does it take to process a CS quote?

"It's lame-o."

<font color="red"> ....bingo!!See,no masters in business/marketing necessary!! </font>