Stickley Furniture
Ashford University Online
BUS 644 Operations Management
Instructor: Michael Snell
July 4, 2011

L. & J. G. Strickley was founded in 1900 by brothers Leopold and George Strickley. The company produces fine cherry, white oak, and mahogany furniture. Over the years the company has experienced both good and bad times. At one point the company employed over 200 people and at another point when the business was in disarray they employed only 20 full time employees. When the business hit its low point in 1974, it was bought by the present owners. Since then the business has prospered and grown. Stickley furniture now has 1,350 employees has five retail showrooms in three states. Their furniture is sold nationally by some 120 dealers. Within this paper I will discuss the history of Strickley furniture, the production process, and changes that might be beneficial to the company.

The Stickley brothers burst into international prominence in the early 20th century with their Mission Oak designs. These were based on the notion that furniture should be “honest”—a reaction against the fake joinery, unnecessary gaudiness, and shoddy workmanship of many of the pieces created in the early days of industrial furniture making. [pic]The Stickleys used solid construction, what-you-see-is-what-you-get joinery, and the highest quality woods. But even more, they showed a genius for design, creating hundreds of new forms that were at once beautiful to look upon, practical to use, exceedingly strong and long-lasting, and perfect for the new ways American families wanted to live. (“Our History” Online, Retrieved July 4, 2011 http://www.stickley.com/OurStickleyStory)
[pic] Stickley furniture was not for shutting up in formal parlors—it was to be used and loved by young and old. Great emphasis was placed on letting the gorgeous, organic forms of quartersawn oak and other woods speak for themselves. Finishes were not thick gums, but clear dyes that allowed natural grain to sparkle.The same devotion to design, the best workmanship, and enduring value was applied to all Stickley designs. Leopold Stickley's colonial-inspired Cherry Valley Collection, introduced in "Revered Dean of Cabinetmakers" in the process. (“Our History” Online, Retrieved July 4, 2011 http://www.stickley.com/OurStickleyStory) [pic]Eventually the Stickley brothers passed away. And respect for hand craft ebbed during the 1950s-1970s. Stickley faced an uncertain future[pic] then the Audi family stepped in. At his Manhattan showroom, E.J. Audi had for years been the leading seller of Stickley’s unsurpassed furniture. His son Alfred, and Alfred’s wife Aminy, were unwilling to let Stickley become a relic of the past, and decided to purchase the Stickley factory when Leopold’s widow was on the brink of closing it. Alfred promised the couple of dozen employees then remaining that “If you stick with me, I'll stick with you, and we're going to make this place move." Together, they rejuvenated the company.[pic]Alfred Audi passed away in the fall of 2007, but the Stickley legacy is being continued by his wife Aminy and son Edward. Enduring tradition, superior craftsmanship, an unshakeable philosophy of excellence—these are the bedrock of the Stickley ethic, and the reason that Stickley produces America’s premium hardwood furniture. (“Our History” Online, Retrieved July 4, 2011 http://www.stickley.com/OurStickleyStory)

Managers can select from four different types of processes: job shop, batch, repetitive, and continuous. Job shops are used to produce a low volume of each of a large variety of products or services. Equipment flexibility must be high to handle the high variety of jobs. Batch processing involves less variety, less need for equipment flexibility, and higher volumes of each type of product. Repetitive processing has even less variety, less need for equipment flexibility, and higher volume. Continuous processing has the lowest variety, the lowest need for equipment flexibility, and the highest volume. Job shops and batch processing are classified as intermittent systems, meaning that output frequently switches from one product or service to another. Repetitive and continuous systems are classified as continuous processing because there is little or no switching from one product to another. (“Key Ideas” Online, Retrieved July 4, 2011 http://highered.mcgraw-hill.com)

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.

The primary mode of operation at Stickley Furniture is Batch processing. The batch method of processing divides the work into different operations. Often, batches produce many work-in-progress inventory where parts still idle till the time they are ready to go to the next step. For Stickley Furniture, the job moves in batches from cutting to pre-planned pieces.
Other type of processing that is used to a lesser extent is Repetitive processing. This is evident from the fact that a "white inventory" is maintained to meet the seasonal fluctuations in the demand. Since repetitive processing require a sufficient time for planning, at Stickley, a schedule of up to 10 weeks is maintained.

2. How does management keep track of job status and location during production?

The company uses a level of production plan (maintain steady output and steady labor force). The production flow begins with various sawing operations. Workers then inspect for defects before cutting and gluing begins. The production is a lean operation. Lean operation is a flexible system that uses minimal resources and produces high quality goods and services Stevenson, W. J. (2009). Each job is accompanied by a set of bar codes that identify the job and the operation. As each operation is completed, the operator removed a bar code sticker and delivers it to the scheduling office where it is scanned into the computer, thereby enabling production control to keep track of progress on a job, and to know its location in the shop.
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. In addition to the “white” inventory and a small finished goods inventory, the company maintains an inventory of furniture pieces and partially assembled items. Job sequence is determined by the amount of inventory (days on hand) and processing time. From the order of 40 mission oak dining room sets, the production staff would need to find out whether all of these are of the same specification or different. The next step would be to how many parts can be obtained from the "white inventory" or from the completed inventory stock. The number of pieces that need to assemble the furniture can thus be obtained. The next step is to start production of additional pieces required through batching. The customer request date is needed as well as any special requirements that may be needed.
4. Benefits, and what problems, would you expect, given the company's level production policy? The company uses a level production plan (maintain steady output and steady labor force). Demand is seasonal; it is highest in the first and third quarters. During the second and fourth quarters, excess output goes into inventory; during the first and third quarters, excess demand is met using inventory. The company, through its level production policy is able to retain all the workers, unlike other producers who hire during peak season and lay-off during low lying season. This allows them to utilize full capacity to continuously produce items to build up the inventory. On the other hand, the problem of this policy is that the physical inventory carries a cost of handling.
5. Can you suggest any changes that might be beneficial to the company? What are they? The company can adopt recent methodologies in manufacturing, like Just-in-Time, which would result in zero inventories. The company would be able to save cost of handling excessive inventory by adopting this technique. Also, the company can adopt TQM. TQM consist of continuously improving the business processes and making them more efficient by making constant changes. “In just-in-time (JIT) production systems, there is both input stock in the form of parts and output stock in the form of product at each stage”. Ohno, K.. (2011). The optimal control of just-in-time-based production and distribution systems and performance comparisons with optimized pull systems. European Journal of Operational Research, 213(1), 124. Retrieved July 4, 2011, from ABI/INFORM Global. (Document ID: 2337999501). Other change that the company might have to adopt is re-engineering if their processes need to be modified or completely changed if the existing processes present a threat to the company at some point in time. In conclusion, Stickley Furniture is one of the well furniture companies that are operating in USA. Though the company initiated in a small way in the year 1900, but it started its business in a large scale in the 80s of last century. That means new Stickley Furniture Company started its business in a large scale during the last quarter of the last century. The history of Stickley Furniture is not very smooth; it is packed with many ups and downs. Today Stickley Furniture is leading furniture manufacturer. This is because of the batch processing and the lean systems put in place by present owners. Stickley Furniture manufacturing process has been developed to anew height. At present the company is known for its authentic design and it is committed to meet the expectation of its customers. The company has varieties of product to cater the needs of the people. The variety of Stickley product includes Stickely metropolitan, Stickley Traditional. The English Oak collection of Stickley Furniture reflected the elegance and class of its work. The products of Stickley furniture not only designed thinking only about the present generation, it also creates furniture for the future generation.

References
Stevenson, W. J. (2009). Operations Management. New York: McGraw-Hill/Irwin

(“Our History” Online, Retrieved July 4, 2011 http://www.stickley.com/OurStickleyStory)

(“Key Ideas” Online, Retrieved July 4, 2011 http://highered.mcgraw-hill.com)

Ohno, K.. (2011). The optimal control of just-in-time-based production and distribution systems and performance comparisons with optimized pull systems. European Journal of Operational Research, 213(1), 124. Retrieved July 4, 2011, from ABI/INFORM Global. (Document ID: 2337999501).