Operation Analysis and Effectiveness - The Klassy Kitchen Company - Case Study Example

Operation Analysis and Effectiveness Name: Institution: Course: Tutor: Date: For any business to flourish in any competitive environment, there must be some operations management systems. Through these management systems, the companies are able to oversee, design and control the processes of production. This also involves ensuring that the operations are efficient in terms of the resources being used. In business, the boundaries between the managerial levels are not always very distinct. Thus tactical information is needed in all businesses to help the individuals who often move between roles over time. The Klassy Kitchens Pty Ltd designs deals with the designing and the manufacturing of the Custom-built kitchen cabinetry. The  company was founded in the Cabramata (Sydney)  in the year 2008. It was started by a husband and wife, Chin an Ann Chu. The couple is coming from different fields of specialization but which blend to come up with a successive business idea. Chin was a cabinetmaker while his wife Anh was a qualified interior designer. Therefore, Mr. Chin could make cabinets from scratch and make them to suit the basic market demand. Mr. Chin could prepare drawings from some specifications or even just determine the job requirements by examining these drawings and the specification. He could also produce some working templates, jigs, drawings or the prototypes for the production assembly of the products using the computer technology. He was also selecting and preparing timber and manufacturing boards. He usually marked out, cut and shaped the pieces using the saws, planes, power tools, chisels and the woodworking machines, which could also include the computerized machinery. He could also select the correct adhesive for the various applications. He also trimmed and glued joints and fixed various parts together until some sections of the furniture are formed. He also did the placing in clamps, applied pressure and reinforced the joints with the staples, screws, nails or dowels. He also professionally removes these sections from the clamps and assembled them to form  some completed articles. He did the finishing of the furniture using various techniques. He also did the fitting of the hinges, catches, locks, mirrors and glass, shelves and the drawers. He also repaired damaged cabinets  and other furniture. He was also supervising the routines in the craft shop. These qualities used by Mr. Chin made the company to have a very strong kick-off. Through the good management of the company, there has been a tremendous improvement, which has led to increase in profit. (Tronto 2005,p.260) Mrs. Anh, who was a professional interior designer, could budget the company’s money, select the materials, schedule the jobs and coordinate the projects. She was able to oversee their jobs on daily basis from the time of conception to the time of completion. She could act on behalf of the clients to ensure that the choices that are selected are used and the work began and ended in a timely manner. She was always present to correct all the problems that might have occurred and maintained focus on the quality of workmanship. She was also attentive to the budget, labor and the materials cost. She had good people skills and was concerned about the safe working conditions. She could only promise to the customers what their company could deliver. She ensured that the latest projects made by their company were available so that the new clients could  confirm by themselves about their quality. She could also ensure that they signed an agreement with the clients before they started working on their projects. She was always on the lookout to ensure that the function, quality and style of the project met the expectations of the clients. All the information was channeled to the workmanship through her. She was having the wealth quality of the craftsmen from her company. (Bbey 2012,p. 228) Initially, the company was to meet the needs of the Vietnamese community that was growing in the western suburbs of Sydney. The company grew gradually and its reputation continued to be amassed. Chinh and Anh realized that their clients’ demands were becoming more diverse with time. They had realized what people needed from them. They were quick to learn from the market trends. The duties of Chanh had undergone some evolution with time. By now, he had filled the role of the production and the operations manager. Mr. Chinh, as the production and operations manager, was now forecasting all the requirements of the production process to achieve the set production target. He also made most efficient utilization of the resources, which were available for production. He was also now able to minimize the throughput time and the work in the process inventory. He was achieving it by systematic planning of production. He also executed efficiently of these plans. (Gilligan 2008, p.20) Chinh was now dealing with the reduction of the material handling cost, by use of material handling efficient system also using plant layouts, which are developed in a very correct and proper way. He was also able to reduce the quality cost through the  analysis of the non-conformances on the periodic basis and by following actions which are suitable(both the preventive and the corrective). He had learnt to build some team spirit amongst the workmen. Also motivating by the means of personal involvement. This motivation was also achieved through implementing and designing a suitable financial incentive schemes. He was also able to device some accurate methodology which involved the method of study of the manufacturing, with other economic and engineering principles. He had learnt to improve the productivity level of his workers on some continuous basis. This was through the workmen’s training and bringing into use some standards of the performance, which was derived from the work measurement studies. (Beverly 2011) Though the managers did not have some formal identification of their roles in the company, they had some fairly effective and comfortable distribution of the managerial responsibilities. Because the two partners were a couple, they trusted and valued each other as an equal partner. This made them to work harmoniously without any conflicts. They always treated the customers with all the delicacy bearing in mind that the business was a family investment resulting from their passion. They were also doing their chores whole-heartedly under minimal supervision. This made their company to thrive very well against their competitors in the market. (John 2007, p.2) The Klassy Kitchens had focused mostly on the custom-made kitchens initially. However, Anh was well prepared and ready to be consulted by their clients. Some of their clients had requested the company to develop some unique kitchen designed as per the clients’ specifications and needs. This was possible because she had developed some good customer care and had what it takes to make one. Anh was aware that she was in the business to serve the customer’s needs. She always did what the clients wanted. She truly listened to their customers, and she was able to get the information of what the customers wanted. By being a good listener to the clients, she was able to guide their company in providing good services to the clients. She always knew that their customers paid their salary and thus made their jobs possible. Anh had developed some good listening skills in their business. Anh could take time to identify the needs of the customers. She did this by asking questions and concentrated on what the customers were saying. She had learnt to listen to their tone of voice, words, body language and their feelings. She always avoided thinking intuitively that she knew what the customer wanted. She had known that her customer needed undivided attention and effective listening .She could anticipate and identify the needs from the customers. She was minded of the customers’ feelings. She had realized that the customers needed emotional and not logical feelings. She knew that she had to know more about their customers to anticipate their needs. (Bbey 2012, p. 230) Anh always communicated regularly and thus she was aware of the problems and upcoming needs. She always made the customers feel appreciated and important. She always treated them as individuals. She always ensured her staff used names and looked for ways to compliment them being sincere. She has realized that customers value sincerity. This created good feelings and trust. The staff had realized that their customers were very sensitive and wanted to know whether they were cared for. The clients were helped to understand the systems of Klassy Kitchens. She always ensured that the clients were not confused about their systems. She always took time to explain how their systems worked and how your company has simplified their transactions. Whenever the clients had a request that was reasonable, she could tell them that the company could do it. She had always appreciated the power of the word “Yes”. She always looked for ways of helping their customers. She was always on the lookout so that what the clients had been promised was done. The staff always knew how to apologize to the clients and to their colleagues. In case one did something wrong, apologizing was a virtue to be cherished. Though it seemed easy, the customers liked it and always praised the company to the other people. Anh Chin knew that the customers were not necessarily right but they needed to be given preference and were to win under whatever circumstances. The company always dealt with the problems instantly and had to let the clients know of what the steps they are taking. The company by doing so, was valuing the complains which were being raised by the clients. Though this was not very well with most of the staff, it gave them an opportunity of improving their services. They had also learnt that although the customers could have had some bad days, they liked being made to feel comfortable. The company had also learnt to be offering more services than expected. By keeping the customers happy, the Klassy Kitchens Company was able to have a good future. The company was doing this to elevate the itself above the market competition. The company had devised methods of inviting positive comments, criticism and the suggestions. This secrete made the company to blossom amidst the competition other firms. The other secrete of the success of the company was on the feedback from the clients. The company always welcomed and encouraged suggestions about what to do for improvement of their services. The company had employed some several methods of getting feedback from their clients about their services. They always checked back regularly so as to see how things were going on. They devised ways of inviting constructive comments, criticism and suggestions. The two shareholders were treating their employees in a humanitarian manner. They had realized that the employees were their internal customers who needed some regular doses of appreciation. The shareholders always thanked them and constantly found ways of letting them know how valuable and important they were. They always treated their employees with a lot of respect. By so doing, these employees treated the customers with higher regards. Treating the employees and customers, was a catalyst for the good rapport in the company. (Virginia 2006) Through the good rapport between the Klassy Kitchens and the customers, the company’s reputation and rating grew. The two shareholders had developed good sales and marketing with time. These skills made them to increase the sales of their products. However, some low volume contracts were being signed for the supply of small “spec” builders, which had a range of high quality standardized kitchen cabinetry. The Klassy Kitchens was required by these contracts to manufacture some limited range of kitchen cabinets in some small batches. This was possible since Mr. Chinh was very creative in making the cabinets and followed the instructions given by the clients. These batches could vary from a single kitchen to even five kitchens designed similarly. The Klassy Kitchen was flexible enough to adjust to these new contracts. These custom-made kitchens attracted many customers because the company was offering very professional designs. These client builders were imposing some more stringent delivery requirements. They were far more sensitive to prices than the custom-made kitchen buyers. By then, most of the sales made by the company were resulting from the sales of these custom-made kitchens. the sales of the custom-designed kitchens was by then accounting more than 75 percent of the revenue and about 60 percent of the factory volume. (Bbey 2012, p. 233) The Klassy Kitchens was operating a single manufacturing facility in Cabramata. In the same firm, both the standard and the custom kitchen cabinets were being manufactured . This was a bright idea from the two shareholders. Having a single business premise at the start is economical since the early stages of the business concentrated on creating awareness to the society. If the firm had many premises, the two shareholders could have been compelled to employ many more workers (which could have increased the expenses incurred by the company). In addition, such a small business in a single business premise, is always in an exponential growth rate. In addition, the management of the business was easier since all the departments are under the same roof. This enabled the two shareholders to manage the business to their level best and finally had it growing gradually. The two shareholders were brilliant enough to purchase some general-purpose machines for the process of making the cabinets. These machines were very economical in that they provided the needed flexibility for the production of some wide variety of the custom designed cabinets. The factory had a layout of various types of equipments, which are grouped together. The idea of grouping these equipment in the workshop was very essential in that, it makes the workplace neat and it saves workers the agony of looking for the machines allover without getting it. Some of these machines are very hazardous to the people of misplaced or not stored with care. The cutting tables and the saw(which are very sharp) are stored in one section. This makes it easier for the workers to retrieve them easily without any chaos. Shapers and the routers are placed in another room so as they are not mixed up. If such equipments were stored together with the sharp ones, they might make one to be cut while attempting to lift or arrange them inside the section. In addition, they placed those equipments and machines, which are not frequently used, in the factory. These equipments include the lathes. Such machines are placed in the farthest section, which is rarely visited by people. This ensures that only the machines, which are used often, are kept near the working area. (Stanley 2005, p.58) In addition, there is an assembling area set aside. Here is where the assembling of the different parts of the products is done. Mrs. Anh does the assessment of the product before it is released to the client. In case there is some deviation of the final product from what the client had ordered, then immediately the necessary steps are taken. This evaluation of the final products in the assembling section has made the company to focus on quality and valuing the customers’ expectations. In case the clients feel that the product is not as per their expectations, Mrs. Anh , who is has acquired very good customer care etiquettes, would handle the matter with sober minds. The Klassy Kitchen Company has always ensured that the finished products are always of high quality. This has made many customers to cherish the products from this company. This has increased the number of customers placing orders in this company. This has made the company to grow exponentially. The two shareholders have always maintained that high quality materials are used when making the cabinets. (Hunter 2010, no.6) During the first days, the two shareholders were in the learning process. They were exploring on the market demand. Thus in the first months, there was an increase in the sales of the builder’s line of kitchens. This led to a more regular scheduling of the making of these builder’s kitchens. Nevertheless, they came to realize that when they were scheduling the trade-offs, the custom kitchens were always being given priority because they were generating more profit margins and the higher sales. In the end, there were many of the standard cabinet components being left sitting around in the various stages of completion. This increased volume of work had completely transformed the previous spacious manufacturing sections into a clogged factory filled partially with the completed work. The two were very observant on these wastage of resources and time. They had to come up with some modalities as a remedy for this problem in the production sector. (Lees 2008,no.1) When Anh Chu reviewed the progress of the Klassy Kitchens, she was moved by the fact that their company had blossomed amidst the challenges. By doing this, she was doing a good thing by evaluating the business progression. The sales of the company were growing and increasing steadily. The sales of the custom kitchens remained very strong while the sales of the builders’ line were increasing steadily. The accountant of the Klassy Kitchens, was very focused on the flow of finances in the company. The accountant argued that though the company had increased its sales, it had not hit the set targets. The accountant was very sharp, confident and well managed. The accountant was also able to multitask. (Xiling 2010) The accountant was able to simultaneously handle multiple tasks without any lose of focus. The accountant was honest while working for the company. He constantly sought knowledge and that made him to quickly learn that the trends in the finance flow in the market. He had the latest news in the furniture industry. He is always ready to learn from all kinds of experiences. This is what has been making him to feel that even though the company was making some good amounts of money, it really had not achieved what he expected. He was constantly on high focus through his good concentration and focus despite any distracting experiences. He is well trained and conversant with the difficulties in the finance world. Through this skills, the accountant was able to monitor the trends of the company effectively. (Rick 2009) The costs, which were associated with the standard builders’ line, were rising. The management of the company noted that there was a lot of money being tied up in the raw materials inventory. This was because they were focusing on the maximizing of the profit . Nevertheless, they were buying many raw materials so that they could manufacture more furniture. Sometimes the quantity of the manufactured furniture could exceed the quantity of sales. The managers had noted that there were many finished products, which were piled up in the assembling sections. This was later noted to be a wastage of capital and time. They realized that the debtors and the creditor ledgers were growing. (Charalambos 2011, p. 2) The increased production of the furniture forced the company to hire another warehouse, which could accommodate the increased volume of raw materials and the finished goods inventory. The business was expanding well and that was a well thought idea about renting new business premises. Anh Chu was also concerned with the increasing lead times for both the standard and custom orders. This resulted into very long promised delivery times. The operation systems were very busy and more products were being manufactured. This current layout, made the plant to have no space for any expansion. This was because the current systems of operation were compelling the manufacturing capacity to the limit. (Rossi 2007,p.5) In conclusion, the Klassy Kitchens has productive systems and processes, which are very dynamic and are result oriented. The decision of renting a new warehouse was a brilliant idea since the company was expanding. The management system was fast in learning from their past mistakes and has been taking the necessary measures. This has made the company to grow amid the challenges which are usually involved in production processes. 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