Managing Operations

Topics: Supply chain management, Management, Supply chain Pages: 12 (3872 words) Published: June 22, 2011
1) Introduction
This is an introduction to the case study of Somerset Furniture. The main talk of the event would be about global supply chain and its impact towards Somerset furniture. In this case study we reverse the history, background, and anatomy of Somerset Furniture. From the introduction of the company we learn about the journey needed in developing and manufacturing the product lines. The journey of Somerset Furniture will dictate on why the company started to outsource and also learn about the time frame involving in planning, processing, developing, shipment and manufacturing of the product lines.

In the next phase we learn of the constraints of problematic issues faced by Somerset Furniture. One of the major issues needed to be dealt with was the delay shipment of manufactured product lines by Somerset Furniture which led to a few more difficulties in the later issues that will be discuss. The next major issues needed to be dealt with by Somerset Furniture, was the excess inventories which is a hassle. In accordance with access inventories it also let to another difficulty which was produce obsolesce. Taking in account, quality and also be an issue that Somerset Furniture came across with distinctive complications. The quality constraints aroused due to human and geographical factors. The last difficulties that needed to be dealt with was the policies of Somerset Furniture (guaranteed product lines for the duration of one year) against replacement of guaranteed furniture parts due to policies given out by the Chinese suppliers.

In a later review, we will discuss the solutions needed to be taken in order to overcome the problem faced by Somerset Furniture. We will initiate knowledge on better communication skills between the chain supply management of Somerset Furniture and overseas manufacturers which are the Chinese suppliers. We also need to understand the method taken to overcome excess inventories whereby the bartering system is introduced in handling excess inventories. It is also very important to defined quality standards in order to provide better product lines. Instead of outsourcing in allocating the general furniture replacement parts, we should find alternative solution in handling the matter.

So let us go more in depth through the case study of Somerset Furniture. In an article published (Joe Roeder. 2001) states that “The key to a truly effective global supply chain is location. Logistics -- the process of strategically managing the procurement, maintenance and movement of materials and products from a point of origin to the customer -- has become big business here mainly because of our centralized location”. Understanding the concepts of global supply chain management is very important therefore to run a successful global supply chain is not easy. Learn to listen, stay composed, and act wisely.

2) Identifying the issues involved Somerset Furniture
2.1) What is Somerset Furniture?
As stated in the case study, Somerset furniture is a company that manufactures large, medium pried, ornate residential home wood furniture such as bedroom cabinets and chest of draws, and dining and living room cabinets, tables, and chairs since 1957 in Randolph County, Virginia. Originally, the furniture’s were manufactured in its primary manufacturing facility which is also located in Randolph County. At early times, Somerset Furniture was augmented as an innovator in furniture manufacturing processes and had the ability of applying ‘Total Quality Management’ principles, which stresses a commitment by management to have a continuing companywide drive toward excellence in all aspects of products and services that are important to customers. In a journal released (Bill J. Priest. 1999), says “The evidence is clear. Using tried-and-true quality principles to manage your organization is not only trendy, it's good for business”, that allocates ‘Total quality management’ as a...
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