Operations Management in Stickley Furniture Company - Essay Example

Operation management: Final Case Study Paper "Stickley Furniture Introduction Stickley Furniture also referred to as L & J.G was founded in 1900 by George Stickley and Leopold. The Company has adopted different modes of production processing such as batch and job shop in order to cope with market demands; the Company has experienced ups and downs in its sales and manufacturing performances. 1. Which type of production processing—job shop, batch, repetitive, or continuous—is the primary mode of operation at Stickley Furniture? Why? What other type of processing is used to a lesser extent? Explain. There are distinct production processes which can be applied in the manufacturing environment. They include batch, job shop and repetitive process. Bearing in mind the type of products being manufactured, it makes furniture business labor intensive due to the fact that it cannot be automated. I think that the production process being shown by Stickly Furniture Company includes batch, job shop and repetitive processes. The Company does not have a continuous because of the type of products they produce. In case of continuous process, it needs an automated system where raw materials are continuously placed or fed to the packing stage. The best mode of production I would propose to be used by Stickly furniture is batch because crafts and machines used to manufacture different parts of the products are distinct. The top is made separately, artisans, sanders and painters play their parts during production. To a lesser extent, I may propose that a continuous production process of furniture be used. This is shown at the sawing stage a stage where a computerized sawing machine is applied. Meanwhile, a manual identification of knots is done by workers. 2. How does management keep track of job status and location during production? Tracking job status of employees is very significant in the inventory control and customer service. In order to keep track of job status in the company, I think that the management has set up automated and manual processes which can be used as a means of tracking job status of furniture in production line. As a means of identifying product location, there is product stamping for dates such as drawers and cabinet doors so that manufacturing dates can be easily obtained by interested people. Based on my thinking, I think that the best way to manage the company operation is to first comprehend the market needs followed by making available all required financial and human resources to ensure that production cycle is well managed. The Company has adopted a system of relating size of production lots with the immediate market requirements or demands which I think is the best system to avoid dead stocks. 3. Suppose the company has just received an order for 40 mission oak dining room sets. Briefly list the kinds of information the company will need to plan, schedule, and process this job. Suppose the company has received such a big order, there are certain specific plans, schedules and process which must be set up as a direction to manufacturing quality oak dining tables on time. I think that the management will have to comprehend the design of the tables requested by the customer, determine the costs so as to comprehend amount of money it will cost the company to produce one table. With Such a big order, it will be paramount that the company understand that time and raw materials supply are vital in production as is in the case study and for the customer to guarantee timely delivery of 40 sets of dining tables, proper planning scheduling and processes must be made available. For instance, it will be important for the company to draw adequate budget, gathering necessary machines, human labor, considering technical needs of each production stage and fixing extra demand within the production schedule. 4. What benefits, and what problems, would you expect, given the company’s level production policy? Bearing in mind the company’s levels of production, there is maintenance of human labor with corresponding output. Furniture products are always characterized by season-ability of demand in that high sales are made in the first and third quarter of the year; therefore to ensure profits are made, the company ensures that there is excess output in the second and last quarter of the year. This strategy I think is beneficial since it enhances completeness in the cycle in that the excess inventory is maximized or utilized to adapt to high demands which the company experiences in the first and third quarter. In addition, the company utilizes well its resources thus there is wastage. Other benefits I think are associated with this level of production are that the management has the chance to make decisions on the necessary changes, output rates, back orders, needed employment and subcontracting. Furthermore, there is long term maintenance of labor force. On contrary, level of production applied by Stickley Furniture has several problems in that there is a possibility of holding large stock during low sales that may be beyond market demand thus causing high level of dead stock in the following season. More so, there is a likelihood of inadequate capital or funding because inventory stocking may be very expensive beyond the ability of the company. Also, furniture industry is characterized by changes in designs which may lead to obsolescence in that some products may be rendered obsolete after a period of one year. 5. Can you suggest any changes that might be beneficial to the company? What are they? In reference to the case analysis above, the company strategies on production scheduling, planning and processes are efficient in terms of type of business, nature of products, market coverage and products being produced. Despite the fact that the company has experienced major achievements in terms of branding, sales, growth, profitability and innovations, there are changes that I wish to suggest for the Company which I think will be beneficial to the company. I suggest that the company should consider total quality management approach because this approach will make the company appear more competitive since it usually makes business process more efficient and improves them constantly. For instance, if Stickly Furniture experiences problems in processing, they might consider re-engineering. Conclusion In conclusion, Stickley Furniture Company has adopted a significant production processing such as batch, repetitive and job shop which have helped the Company immensely. More so, the Company has initiated an automated system that helps it track job status and location during production which increases efficiency in production. In addition, the Company can make profits during the first and third quarter of the year when market demands are high. Despite the benefits, the company experiences some problems in that there is a possibility of holding large stock during low sales that may be beyond market demand thus causing high level of dead stock in the following season and that inventory stocking is very expensive beyond the company’s ability. References Herrmann, Jeffrey, W. (2004). Information flow and decision-making in production scheduling. Industrial Engineering Research Conference. Houston, Texas. Vieira, G. E., Jeffrey, W. H & Edward, L. (2003). Rescheduling manufacturing systems: A Framework of Strategies, Policies, and Methods. Journal of Scheduling, 6(1), 35-58. Stevenson, W. J. (2011). Operations Management (11thEd.). 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