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Chads Creative Concepts Case Study

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Production and Operations Management
Chapter One: Case Study
Chad’s Creative Concepts

1. Decisions: a. What types of decision must Chad Thomas make daily for his company’s operations to run effectively? i. To finish the work in process of the standard line to clear up room in the plant at the temporary expense of holding off on the current delivery of custom furniture ii. Find alternative storage capability 1. Less expensive rental 2. Allocate funds to purchase land and construct own warehouse…sink the investment into a fixed cost solution iii. Reconfigure the equipment layouts in the plant 3. Make the setup more efficient and cut down on waste attributed to going from one machine area to the next 4. Reprocess to cut down on the waste of time lost to one craftsman starting and finishing one piece of furniture a. Streamline process and create true assembly line concept to speed up completion of work load iv. Finding less expensive Suppliers v. Perhaps looking at less customization and more focus on the higher demand of types of wood for his product vi. Time to make adjustments based on choosing his best options for profitability b. Over the long-run? vii. Along with that listed above, the following needs to be looked at: 5. Consider expansion by purchasing or erecting second manufactory or expanding this one 6. Include warehouse and storage capacity 7. Cut down on warehousing and storage needs 8. Consider just-in-time supply capability 9. Get lean 2. How did sales and marketing affect operations when they began to sell standard pieces to retail outlets? c. Two effects of the move to selling standard pieces began to be felt by the

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