Amen Mukhlis

Operation Management

Chad Creative Furniture Case Analysis : Chad Furniture is a small manufacturing in size Growing Bigger and With The Growing In Process Chad Faces different Challenges the Text Summarize As : the transition from being a custom Made Creative furniture to sell standard Furniture to retail Store which would impact the company as a philosophy and Financials. Most of the Sales Dollars were generated By custom made furniture (75%) , and 60% of produced furniture was a custom made Furniture . The increase in standard furniture sales Thus (Need of production) needed time for trade of between standard furniture and custom designed furniture , custom furniture has a priority based on sales and dollars of profit. Cost associated with standard Line is rising time for delivery is being longer and longer and thus more cost for warehouse to keep inventory and more process time. Discussing Chad's Furniture Chad furniture Has been started as a small business and developing to a bigger business making a transition in Size , Goals , Customers and Profit chad has started on the idea of a unique creative furniture bringing the out side to the inside , along the way with this change Chads main focus might had been shifted with the increase in standard furniture sales and orders even though this change the process of production is still prioritize the custom designed furniture which is the main drive of sales and profit , this could be because of the Vague goals for the company as the change in size , orders and product did not change the company's Vision and Goals which means the company has not have a real project plan for development and Operation. Operation Management Chad's Furniture according to the Case seems to lack the basic operation management principles and Above all Using all the resources to come up with an output with the best efficiency possible ,Thomas Chad Has to look again at the company and start with the principles beginning with the vision , Goals and philosophy as its unclear where the company is going is the company going to carry on with both custom designed furniture and standard furniture or the company will Focus on only one of them. In order to asses and evaluate the company at this point Thomas chad has to define and specify the problems in order to find the solution ( The Problems were identified in the beginning in this paper).

Amen Mukhlis

Operation Management

Since we are looking at Chad's furniture from an operation management point of view you are going to look at the resources identify the challenges concerning resources and the process of producing an output. In the process of producing the furniture Several component are involved ( employees , Design ,Raw material , Machines , Warehouse , productions , Finance). Chad's Has to look at each and every phase of the phases of production : The Design stage is more important in the custom made furniture as it is treated differently to be creative and to allow customers choose the wood they want and made it up to their requirements. While the process of manufacturing both types of furniture is Simple and Similar in terms of production Chad has to asses the Design Phase the Cost and Efficiency , The Staff is the same which reflects professionalism and Knowledge which does not seems to have a problem except that the text does not mention if there is a need for more staff. The text mention a problem with scheduling as this problem is the main problem for Chad's furniture. Scheduling : in this case one of the major problems is the scheduling as it seems that Chads Furniture has no real scheduling process that Can solve most of the problem ! Scheduling problem is causing delays in production , Inventory Sit out , employees need or overtime need , warehouse Cost Suggestions for Solutions : profitability Study : the company needs to perform a profitability study to evaluate both lines of products and their profitability and if it was better for the company to produce both lines or concentrate on only one of them. Better scheduling for production based on both resources , orders and need for the products or the share of the market for the product. ( Chad can take Amazon example) where the company does not sell or deliver (Produce an outcome before having received for the order) , if the company decides to carry on producing both standard and custom design furniture (Based on profitability Study) it might be beneficial to produce the custom made furniture on different days from Standard , the text mentions that 75% of the Sales dollars comes from custom made furniture and mentions that 60% of the production is a custom made furniture So scheduling solutions might be : scheduling days of production based on percentage of products, Another solution would be to add more working hours after assessing the more efficient option of either given employees overtime , hiring new employees , using a temporary agency for employment to hire new temporary staff that can help in production. Chad Growth : Chad could grow bigger beyond the suggested solution by moving to a bigger facility with making two lines of production that would give them more space in terms of production , inventory , time and utilizing resources.

Amen Mukhlis

Operation Management

Scheduling for inventory is essential part of production and having an efficient supply chain might be a big part of solving Chad's Concerns Suggested Solutions For inventory Problems : utilize the available space : the text mentions that the Saws are on one side of the facility and the lathes on the other which means the space is not fully and efficiently utilized. Smart supply chain : many companies like Amazon depends on a unique system of having a relationship with their suppliers that give them the benefit of getting the supplies when they need which means less storing in the warehouse or even no where house Renting a bigger space or cheaper for inventory better scheduling for production would result in less need for warehouse space as inventory would not sit in warehouses.

The text mentions that both products are inclining in sales and even though 60% of the production and 75% of the sales dollar are due to the creative custom design furniture , and the standard furniture product was growing fast but the company was not prepared for this Growth in terms of the resources and the ability , which needs Chad's to work it as I mentioned before on a better project plan that consist of a real operation management plan that would allow the management to utilize the resources , identify their strength points and where they need to work on improving their efficiency.

Amen Mukhlis

Operation Management

Book's Questions: Daily decisions : scheduling , supervising , overseeing production process , review the financial situation ==> ( all activities were mentioned in the previous analysis). Sales and marketing affects the operation in a big way as good marketing and good sale would result in a faster production process and a faster turn over for inventory less cost and an easier decision regarding planning , scheduling and making decision turn over in inventory would result in the needless for more expenses weather for storing inventory or paying interset for loans on inventory , faster payments and faster production cycle. Producing a standard furniture to be sold to the retail stores has a positive impact on the financial structure of the company , but through the analysis poor planning and using resources has lead to make this growth look as a burden on the company , the continuous inclination in sales of standard furniture would result in a bigger sales numbers and thus a bigger profit and a better financial structure , but all is related to identifying the challenges in Chad's structure and Production and Solve them , in the case analysis the problem was with low turn over in inventory that was resulted because of the delay in production and delivery due to the poor planning and the bad utilizing for the resources. Thomas wouldve used better planning and better using for the resources , in the analysis I mentioned some of the suggested solutions some examples would be planning , scheduling , hiring or adding more working days/hours , renting a new warehouse or facility , or adding a new line of production to avoid conflict.