Thicket Wood Ltd. produces high-quality custom and handcrafted kitchen cabinets. They have a forecasted demand of two thousand kitchen cabinets this upcoming year. To meet this demand Mark Taylor operations manager must purchase a new or used CNC router machine and re-arrange his employees. Mark needs to re-arrange his employees to maximize the benefit of the CNC routing machine and meet the required demand of cabinets. There are six employees to re-arrange if he were to purchase the new CNC routing machine and seven employees to re-arrange if he choose to purchase the used CNC routing machine. To determine which machine he should invest in we have calculated the payback period for each option. It was determined that the new CNC routing machines payback period is three years, equivalent to the three years it is covered under warranty. The used CNC routing machine has a payback period of one year and eight months witch exceeds the warranty of one year. Mark decides to go with the new CNC routing machine form High Tech Inc. do to these calculations. We have also determined how many cabinets the production line can produce per year with the re-arranged line of six workers and the new CNC router machine. We know that working at maximum capacity is unrealistic therefore we have also determined how many cabinets we can produce at a lower production capacity. These calculations also help solve the second part of the main problem Thicket Wood is facing, meeting the demand of two thousand cabinets for the upcoming year. There are also sub problems which Thicket Wood will possibly face such as bottlenecks in the production line. As well as the implementation of the new CNC router machine which would then reclassify their product and require them to restructure their sales pitch.
Thicket Wood Ltd. is a well-known, high quality custom and handcrafted manufacture of kitchen cabinets. It is located in Kitchener, Ontario and sold most of their cabinets locally to high-income families who wanted unique custom cabinets to enhance their kitchens appearance. With a forecasted upcoming demand of two thousand kitchen cabinets, Mark Taylor the new operations manager at Thicket Wood would like to immediately implement some of his new ideas for the company. Problem Statement
Mark Taylor, operations manager at Thicket Wood Ltd. must make a decision on whether to purchase and invest in a new or used CNC (Computer numeric controlled router) Machine to better the company’s production line and meet the forecasted demand of two thousand kitchen cabinets next year. Sub Issues
The current production line is not meeting the forecasted demand of two thousand kitchen cabinets. There is a bottle neck in step three of the cabinet manufacture production line. This bottle neck plays a part in preventing Thicket Wood from meet the upcoming year’s forecasted demand. When implementing the CNC router machine the bottle neck moves from step three-routing to step four-assembly. If Mark decides to purchase a CNC routing machine Thicket Wood’s kitchen cabinets would not be “handcrafted” anymore as a machine would be implemented in their production line. This could be detrimental to their word of mouth advertising they so heavily rely on. Analysis
Mark must keep in mind the level of importance of each objective in order to maintain the integrity of the product and keep his consumers satisfied. The following objectives are listed in the order of importance: 1. Quality
Thicket Wood’s main operation task objective is to produce the best quality kitchen cabinet to meet the demands of their Ontario consumers. Ticket Wood caters primarily to high income families building new homes and their prices reflect their quality product. They believe that “because the cabinets were so expensive, customers demanded an extremely high quality product.” These families are looking for unique and custom cabinets to enhance the...