In 2003-2004, La-Z-Boy Incorporated shifted sourcing of high volume leather and fabric cut and sewn kits from the US to China to take advantage of sourcing and cost savings opportunities.   Kits that were high running volume styles were moved from the US to China.  Since the styles were high running, they could be ordered with the long lead times inherent in trans-Pacific shipments and be managed effectively. 

With many high running styles removed from the US Plants as far as cutting and sewing was concerned, US Plants were left with the “Repeater” and “Stranger” styles.  This remaining lower volume spread over six US plant operations resulted in “whip-saw” cutting and sewing schedules at the US Plants where demand was high enough some weeks to require overtime, whereas during other weeks there wasn’t enough work to support a forty-hour work week.  Labor cost variances tell the story.

In an effort to level these variances at the US Plants, and to reduce costs overall, it was decided to move cutting and sewing operations from all US Plants to a centralized facility in Mexico; the Cutting and Sewing Center or CSC.  It is estimated that the CSC will save the company millions of dollars by moving this volume from the US plant operations into one centralized operation in Mexico.  In addition, servicing customer demand will improve with raw materials all being under one roof.

•          Business Imperatives – Mark Hellwig, CSC Project Sponsor, is VP Supply Chain since 2006, and has over 17 years experience in Supply Chain.

•          Global Supply Chain – Margaret Park, CSCP, CPIM, is Manager of Logistics Planning, has 10 years Logistics experience and has been with La-Z-Boy since 2006. Margaret, who has 2 B.A. degrees from the University of N.C. in Information Systems and Operations Management, leads carrier management and sets standardized operating procedures and consistent quality processes for related activities at LZB Residential plants, Mexico Cut & Sew Center and throughout the supply chain. Margaret is currently serving on the Greater Detroit Chapter of APICS as Chapter Secretary.

•          Project Management – Eric Hulsemann, PMP, is Senior Project Manager for the CSC Project and has an extensive background with military naval projects. Eric, a US citizen since 2005, has been with La-Z-Boy since 1997.

•          Facilitization – Mike Gaines, Director of Manufacturing Engineering, has a B.S. in Electromechanical Engineering from Kettering Institute, and is responsible for Facilitization support of La-Z-Boy’s Mexico CSC Facility including process design, facility design, equipment relocation, and machinery and equipment expenditures of close to $5 million.

•          Enterprise 1 Implementation – Dan Deland, Chief Information Officer, with over 27 years experience in the IT field, has been with LZB since 1999. As CIO, Dan is responsible for driving the design and development of information systems and infrastructure to support the company's strategic business objectives. Dan has a B.A. from Eastern Michigan University.

•          Product Transition to the CSC – Joe Steinem, CPIM, is Director Supply Chain & Planning and responsible for the management of cover inventory (fabric and leather) raw materials for the residential division. Joe has a B.A. and M. B. A from the University of Toledo, and has been with LZB since 2006.