Chad's concepts Case
Case: Chad’s Creative Concepts
1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?
I believe that Chad must prioritize scheduling hours amongst the standard and customized furniture. Since the company operates only a single manufacturing process, a trade-off between the two types is made. As sales of the standard line steadily increases, Chad may have to schedule more hours for it and decrease for the customized line. To properly figure out scheduling times, Chad can also re-evaluate his inventory system. Even though the standard furniture sales are increasing, the profits are not due to the increased costs. If Chad could erase the public warehouse space, I believe profit would be at a more desired amount. Over the long run, Chad should invest in a secondary machine or process in a different location. His plant does not have room for expansion, but should not be taking more work than it can handle. Hence the longer lead times for both product lines and also for the delivery times. Otherwise, I think Chad should look at his customers and target market in order to solely focus on either the standard or custom line. Another thing to do is maybe change the expected time of delivery. Retail customers may be more focused on delivery time, but if the company rebrands expressing their high-quality products take time, then it might give them a bit more leeway.
2. How did sales and marketing affect operations when they began to sell standard pieces to retail outlets.
The sales and marketing departments affected operations in many ways. When Chad opened the standard furniture to retailers, sales and marketing had to account for the new customers who were more price-sensitive and stringent on delivery times. Sales increased as more standard furniture was being sold to retailers while the reputation also grew. Customized furniture did account for most of the sales, so I believe that overall sales may
1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?
I believe that Chad must prioritize scheduling hours amongst the standard and customized furniture. Since the company operates only a single manufacturing process, a trade-off between the two types is made. As sales of the standard line steadily increases, Chad may have to schedule more hours for it and decrease for the customized line. To properly figure out scheduling times, Chad can also re-evaluate his inventory system. Even though the standard furniture sales are increasing, the profits are not due to the increased costs. If Chad could erase the public warehouse space, I believe profit would be at a more desired amount. Over the long run, Chad should invest in a secondary machine or process in a different location. His plant does not have room for expansion, but should not be taking more work than it can handle. Hence the longer lead times for both product lines and also for the delivery times. Otherwise, I think Chad should look at his customers and target market in order to solely focus on either the standard or custom line. Another thing to do is maybe change the expected time of delivery. Retail customers may be more focused on delivery time, but if the company rebrands expressing their high-quality products take time, then it might give them a bit more leeway.
2. How did sales and marketing affect operations when they began to sell standard pieces to retail outlets.
The sales and marketing departments affected operations in many ways. When Chad opened the standard furniture to retailers, sales and marketing had to account for the new customers who were more price-sensitive and stringent on delivery times. Sales increased as more standard furniture was being sold to retailers while the reputation also grew. Customized furniture did account for most of the sales, so I believe that overall sales may