Analysis of Singleton Electric's Operations and Manufacturing

This report examines the operations and manufacturing strategies of Singleton Electric, an Australian company producing industrial batteries for electric wheelchairs and golf carts. The analysis covers the company's production processes, sourcing practices, product design, and market segmentation. It delves into Singleton Electric's competitive environment, applying Porter's Five Forces to assess its market position and challenges from competitors and new entrants. The report highlights Singleton's core competencies, including its ability to develop customized batteries and maintain strong supplier relationships. It also discusses the importance of technology adoption and product differentiation for maintaining a competitive edge. Furthermore, the report explores strategic recommendations, such as investing in lithium technology, improving e-commerce capabilities, and refining market segmentation to enhance customer loyalty and expand market share. The report concludes with an overview of the challenges and opportunities facing Singleton Electric in a dynamic market.

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MANUFACTURING MANAGEMENT
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Singleton electric
The company began operations 28 years ago and produces industrial batteries. The batteries fit
two main applications, which include specialized wheelchairs and electric golf carts. Singleton
electric has one major customer for the wheelchair batteries. The wheelchair company serves a
market made up of people with specialized difficulties. The wheelchair batteries require
specialization in size, shape and power. However, about 75% of the wheelchairs manufactured at
the company can use one of the four different standard batteries. The development of customized
batteries with short lead times has developed a stronger bond between Singleton electric and the
wheelchair company. Over time, Singleton electric has become the sole supplier of the company.
Moreover, Singleton electric supplies to other customers who buy customized batteries in small
quantities.
On the other hand, the market for golf cart batteries consists of small major suppliers who create
market competition. One of the golf cart battery manufacturers reside in North America, which
has a seasonal market. The golf cart batteries have a standard design in terms of shape, size and
power. Therefore, the entry of Asian and Eastern Europe manufacturers into the market has
resulted in price wars.
Production process
Singleton Electric organizes operations into two shifts of eight hours a day. The shifts give the
company a capacity of approximately 115,000 pumps annually. The company also hires
temporary employees during peak seasons to meet high-market demand. The subcontracting of
employees during peak season allows Singleton Electric to save on expenses that would accrue
when laying off permanent employees during low seasons.

OPERATIONS 3
The manufacture of batteries preparation of a mixture of lead oxide, Sulphuric acid, water and
other necessary compounds. The mixture forms a paste, which is then mixed with lead grids and
welded using appropriate connectors and finally fixed into a battery case before sealing. The
whole manufacturing process involves potential hazards, which could harm the employees’
health. Therefore, the company has put in place health and safety measures such as the use of
protective gear.
Sourcing
Singleton electric purchases battery cases, cell lids and other materials for small producers who
can make a quick delivery. Singleton has developed strong relations with the suppliers, which
enables control of the quality standards of the materials received. Additionally, Singleton has
created proper relations with local suppliers by purchasing standardized products. Singleton
allows local companies to supply after showing the ability to deliver quickly. The sourcing plans
adopted by Singleton electric play a huge role in matching demand to supply and reducing
production costs (Bloom, 2012).
Product design and market
Singleton relies on developing superior products to maintain a competitive advantage (Bloom,
2012). The battery designs developed by the company consume 20% less lead compared to what
competitor companies’ use. Therefore, Singleton electric has managed to maintain a low product
price in the market. However, with new entrants into the market and competitors picking up the
pace, Singleton electric has begun experiencing a reduction in sales (Demeter, 2016). The golf
cart market has experienced reduced demand, which increases concern to the company.
Singleton intends to adopt new technology and match the steps taken by the big companies,
which plan on introducing new battery technology. Singleton considers purchasing the license

OPERATIONS 4
for lithium technology developed in the USA. The reason for purchase lies in that not so many
companies have adopted the technology even in medium amounts. The lithium cell technology
would increase production to 200,000 units a year. Therefore, Singleton will increase
competitive advantage through cheap production and increased volumes of products in the
market. Additionally, buying the lithium cell license will put up barriers to entry for new
companies meaning that Singleton electric will experience fewer competitors. Moreover, keeping
the prices low and selling high-quality products will increase customer loyalty in the long-term
(Doni, 2019).
Core competencies at Singleton electric
Porter’s five forces
Singleton electric faces the challenge of developing a strong competitive advantage to beat the
competition in the battery market (Donovan, 2015). The current market conditions have seen the
entry of various competitors who would pose a risk to the Singleton electric’s existence.
Singleton electric could consider implementing the porter five forces to maintain a competitive
advantage in the market (Gurkov, 2013). The porter five forces outline various market factors
that could enable Singleton to become competitive in the market.
One of the factors includes potential entrants, which refers to the new companies who intend or
have already joined the market (Hemphill, 2012). Most of the new companies bring in a new
competition to Singleton thus requiring the development of new strategies. For example,
Singleton could lose customers to the new players entering the golf cart market with new battery
designs. In this situation, Singleton could undertake various choices, which could help beat
competition form the new entrants (Kim, 2015). Singleton could engage in market campaigns to

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create customer awareness about the product. The market campaign should focus on creating
customer loyalty to tie down the customers to the batteries.
Additionally, Singleton could engage in research and development to come up with an
economical brand of batteries. The batteries should have unique characteristics and require cheap
production costs to allow selling at lower prices (Loh, 2015). For example, Singleton should
move forward with the lithium technology that other companies lack knowledge in developing.
Moreover, after developing the new lithium brands, Singleton should patent the batteries to
ensure that the competition does not imitate (Newbert, 2014). The aim of developing and
patenting the new lithium battery brands is to create entry barriers for new entrants. The entrants
will also require to engage in expensive research and development to developing unique battery
brands, which could prove expensive for most startups. Therefore, Singleton will have a chance
to operate in the long-term without competition (O'Sullivan, 2013).
The other element in Porter’s five forces includes competitors, which refers to other players
already in the market (Powell, 2014). Competitors pose a challenge to the existence of a
company into the long-term. Failure to fully satisfy customer needs in the markets leads to
competitors taking up the market share. Therefore, in the case of Singleton, a great strategy is
necessary to beat the already existing suppliers (Powell, 2014). For example, Singleton
experiences competition in the North American market for golf cart batteries. The market has
Asian and Eastern Europe suppliers who take up part of the market share supplied by Singleton
Electric. Therefore, Singleton should come up with a strategy to introduce price wars in the
market. The price wars should favour Singleton by reducing the product prices to attract a large
number of customers to purchase the batteries (Siegel, 2015). The reduction in the price of
Singleton batteries attracts the customers since the batteries have a standards design, which

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means that most buyers go for the cheapest in the market. The move will force some of the weak
companies posing completion to leave the market due to the inability to supply cheaply (Xue,
2013).
Moreover, porter five forces emphasize focusing on the buyers in the market (Zhang, 2012). The
buyers require high-quality products at affordable prices. Singleton should focus on supplying
products that meet consumer expectations and charge affordable prices. Failure to supply high-
quality in the market leads to loss of customers to existing competitors. Singleton should focus
on tying up customers by cultivating loyalty towards the company and products (Ali, 2014). One
way the company could cultivate loyalty includes eliminating intermediaries to allow direct
contact with the customers. The direct contact allows the customers to have a touch of what the
company looks like and the operations. Therefore, developing a friendly relationship, which
strengthens customer loyalty (Ali, 2014).
Singleton should also consider managing the suppliers of raw materials (Bratman, 2015).
Currently, Singleton electric has managed to develop close relations with the suppliers of cases
and lids. The supplier selection was based on the ability to produce and deliver customized
materials within short lead time. Therefore, Singleton has managed to reduce costs incurred in
holding inventory for manufacture. The ability to receive the right quality and quantity of
products allows the company to implement the just-in-time system (Colombi, 2012).
Consequently, the elimination of storage costs allows Singleton to sell at low prices, which
attracts customers and increases sales. Singleton has a properly managed supply chain system
that allows quick receipt of products.
Technology

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Singleton should move fast in adapting technology in operations. The investment in technology
will enable Singleton to come with superior products through prototyping and online research.
Additionally, the automation of manufacturing processes will play a huge role in reducing
product prices in the market (Farahani, 2015).
Technology will play a great role in revolutionizing the operational procedures at Singleton
(Gunasekaran, 2014). For example, Singleton stands a chance of reducing the number of
employees with the introduction of technology. The reduction of employees means the company
will not incur high expenses in the payment of wages and salaries, which currently stand at 4
million per year. The company will have a chance of channeling more funds to other functions
such as research and development. Additionally, Singleton will make more profits in the market
due to high sales revenues against low costs of production. The low cost of production will allow
Singleton to sell products at reduced prices compared to the competitors. Therefore, the company
will have an increased market size of customers looking for high-quality products selling at
cheap prices (Huisman, 2015).
On the other hand, technology will allow Singleton to perform e-commerce, which includes
selling of products through the internet (Liangjie, 2013). The internet has become a major source
of customers by availing a global market for products. E-commerce involves customer purchase
and payment of products through online sources such as E-payment. The introduction of new
technology will lead to the successful introduction of online platforms for customers to select
and purchase products. Additionally, Singleton will easily communicate with abroad customers
through online functions such a virtual customers (Madden, 2012). The customers will easily
make enquiries, orders and payments for products. The e-commerce market will benefit the

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company in beating the competition in North America. The e-commerce platform will allow
better communications with the customers compared to what the competitors offer.
Product differentiation
Singleton engages in product differentiation, which enables in serving different markets
including the golf carts and specialized wheelchairs (Maloni, 2013). Product differentiation has
enabled Singleton to satisfy customers and reduce product prices since the standard batteries
have a lower production cost compared to the wheelchair batteries. However, Singleton should
further differentiate the products from what the competitors offer. Differentiation of products
will allow the company to stand out in the market by providing high-quality durable products
(Milne, 2012). For example, with the adoption of lithium technology the company will have a
chance of revolutionizing the market with a superior product that competitors cannot match. The
new technology will allow Singleton to raise the quality of both the standard and the specialized
wheel chair prices. The company will experience new customers buying the products due to the
exciting prospect of using new technology. As a result, Singleton will increase the market share
and the sales revenues received within a financial year. Consequently, product differentiation
will increase product loyalty and brand equity in the market (Taylor, 2013).
Market segmentation
Singleton has ventured into market segmentation by distributing different types of batteries to the
golf cart and the wheelchair markets. The company provides quality and different prices based
on the production costs involved in the manufacture of each battery type (Whitney, 2017). The
company should also consider the choice of regional segmentation, which will allow a better
understanding of market specific needs. For example, the company should come up with regions
made up of customers from different places and conduct market research. The research should

OPERATIONS 9
focus on identifying the exact customer expectations from the products (Taylor, 2013).
Therefore, the company will have an opportunity for tailoring product specifications to meet the
customer requirements. Additionally, the company will understand the demand for each product
and come up with production numbers. The production numbers will state how many units to
produce for each market without resulting in wastage of shortages. Consequently, Singleton will
have a high turnover since the customers buy most of the batteries produced.
Overall cost leadership
The aspect refers to selling high-quality products at low prices than competitors (Madden, 2012).
Currently, Singleton prides in making superior battery brands that consume 20% less lead
compared to competitor batteries. The less consumption of lead has enabled the company to sell
batteries at a lower price compared to competitors. Singleton should take advantage of the ability
to produce batteries at lower prices to conquer the market (Bratman, 2015). The company should
now focus on increasing production to avoid losing customers through market shortages. The
company could buy more machinery and employ more employees to increase production.
Alternatively, the Singleton could introduce high-level technology to increase battery production.
Consequently, increasing production volumes and selling at low prices will enable the company
to sell more units resulting in high-revenues.
Focusing on order winners and order qualifiers
Singleton should focus on the order winning and qualifying aspects of the battery industry. The
order winners include the criteria that enable a product to outdo the competition in the market
(Zhang, 2012). On the other hand, order qualifiers refer to the basic criteria to satisfy before
releasing a product to the market. The order qualifiers for the battery market include safety and
power to operate specialized equipment (Siegel, 2015). The batteries produced by Singleton

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should adequately serve the intended purpose of powering equipment such as golf carts and
specialized wheelchairs. The ability to power the mentioned gadgets will increase the chances of
consideration in the market by customers.
On the other hand, Singleton should consider the order qualifiers in the market. The customers
require the batteries to stand out to have a chance for selection during purchase. Therefore,
Singleton should consider manufacturing reliable batteries to serve customers better. Singleton
should integrate reliability into the batteries by improving aspects such as durability and market
availability. The customers check for such features for the promise of the value of money.
The other order winning aspect includes selling the batteries at affordable prices (Powell, 2014).
Singleton electric should ensure that the batteries meet high-quality standards and sell at
affordable prices. The customers consider the quality and price of products during purchase.
Therefore, the batteries will become candidates of purchase when sold at low prices and meet
high-quality standards.
Innovation also allows the products to stand a chance of purchase in the market since customers
look for exciting products that efficiently serve the intended purpose. Therefore, Singleton
manufacturing batteries with innovative shapes, power and durability increase the chances of
purchases in the market (Hemphill, 2012).
Capacity strategy
Singleton requires to come up with a capacity plan that will create operations effectiveness and
efficiency (Bloom, 2012). Additionally, the capacity strategy should also reduce production costs
and ensure continuous availability of resources. For example, the capacity system should ensure
the availability of extra employees at the factory during the high- season to meet (Loh, 2015). A

OPERATIONS 11
poorly planned capacity system could lead to operation failure due to a shortage of required
resources.
Subcontracting
Singleton electric has the choice of hiring temporary employees during peak seasons to meet
demand rises (Bloom, 2012). The company goes for experienced employees in the job market to
reduce high costs incurred in training and development. The temporary employees sign contacts
for a short period usually the duration of the high season. Once the high-season ends, the
employees terminate the contracts and get a final pay package. Singleton should also consider
subcontracting machinery and logistics. The machinery will assist the company in producing
more batteries to satisfy the North American market. Additionally, the increased production will
meet demand in newly created markets (Bloom, 2012).
Subcontracting guarantees various benefits such as reduced costs of wages and salaries
(Demeter, 2016). The reason for reduced pay lies in that the company does not pay many
allowances to casual employees. Additionally, the company does not incur the high costs paid
while terminating permanent workers (Donovan, 2015). Therefore, Singleton has the ability to
sell products cheaply in the market, which increases purchases and customer loyalty.
Furthermore, the subcontracting of machinery and other production equipment ensures that
Singleton does not have idle capacity during the low season (Kim, 2015). Most companies suffer
from the problem of excess capacity when machinery bought during the high season becomes
useless during the low season. Consequently, the excess machinery still accumulates costs such
as maintenance and depreciation even when not in use. Therefore, to save the company from
such unwanted costs, then subcontracting comes in as the best solution (Kim, 2015).
Just-in-time management

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Singleton has the opportunity of implementing the just-in-time system in managing raw materials
(Bloom, 2012). The company has developed close ties with major suppliers. The supplier has the
ability to deliver specialized materials within a period of short notice. Additionally, Singleton
receives standard raw materials from small manufacturers who can deliver within a short time.
Therefore, Singleton has managed to develop a capacity system that does not hold inventory at
the premises. Through vendor management techniques, Singleton has managed to communicate
with suppliers on the quality and quantity products required (Gurkov, 2013). Moreover, the
suppliers have managed to adapt to Singleton requirements of delivering products within short
notices. Therefore, through capacity management, Singleton has managed to reduce inventory
holding costs by ensuring quick delivery from the suppliers. On the other hand, the quick
deliveries ensure that Singleton does not experience shortages in the production of batteries
(Newbert, 2014).
However, Singleton should aim at introducing an information system that manages inventory
(Whitney, 2017). The management should stretch from the operations department at singleton to
the supplier’s offices. The software will play a huge role in Singleton’s efforts of improving the
just-in-time system. The software will provide timely updates of the amount of inventory used in
production and the quantity needed. Therefore, Singleton will save time and resources used up in
manual ordering of materials from suppliers (Whitney, 2017). The benefit will include reduced
cost of production resulting in the ability to sell products at lower prices in the market.
Aggregate capacity planning
The technique is also called the sales and operational plan. The method focusses on single or a
family of products sold by the company (Gurkov, 2013). The method plans capacity based on the
quantity and time of production based on market demand forecasts. The technique properly suits