Bus 644 Operations Management Final

Topics: Supply chain management, Management, Inventory Pages: 9 (3183 words) Published: May 9, 2012
Improving Stickley Furniture

BUS 644 Operations Management

Abstract
Stickley Furniture has a long tradition of manufacturing and selling fine furniture goods. The Consulting Firm has been charged with the responsibility of evaluating and explaining how the company operates and tracks jobs and inventory. Also, the pros and cons of how orders are processed are evaluated. Finally, suggestions are made regarding the way the company should handle forecasting, inventory, work measurement, facility layout, shipping, quality, goals, and recognition. A full change in operations could result in greater customer satisfaction, reduced electricity usage, greater customer satisfaction, faster and less costly delivery of goods sold, less stock of furniture pieces piling up in the warehouse, and greater profitability year over year for the company, its retail locations, and the profitability of customers.  

Improving Stickley Furniture
Stickley Furniture has a long tradition of manufacturing and selling fine furniture goods. The Consulting Firm has been charged with the responsibility of evaluating and explaining how the company operates and tracks jobs and inventory. Also, the pros and cons of how orders are processed are evaluated. Finally, suggestions are made regarding the way the company should handle forecasting, inventory, work measurement, facility layout, shipping, quality, goals, and recognition. A full change in operations could result in greater customer satisfaction, reduced electricity usage, greater customer satisfaction, faster and less costly delivery of goods sold, less stock of furniture pieces piling up in the warehouse, and greater profitability year over year for the company, its retail locations, and the profitability of customers. Old Fashioned Production

Stickley Furniture has been around for over 100 years, which is a huge achievement. Fortunately methods have change for the better with the introduction of computers and automated machinery. The skillful hands and caring eye of employees are still needed to make the operation go. Stickley uses primarily continuous production processing, as well as some repetitive and job shop production processing. In regards to a continuous production processing system Stevenson said, “When a very high volume of nondiscrete, highly standardized output is desired, a continuous system is used. These systems have almost no variety in output and, hence, no need for equipment flexibility. Workers’ skill requirements can range from low to high, depending on the complexity of the system and the expertise workers need. Generally, if equipment is highly specialized, worker skills can be lower (page 240).” The skills of the Stickley Furniture workers range from highly skilled workers that hand carve individual pieces and master cabinet makers that handle custom orders, to employees that have been taught to use equipment that can determine the best way to cut lumber and recognize knots, as well as workers that are low-skilled handlers that use muscle to move large and small pieces from one location to another in the factory. In general the company runs the same amount pieces through the factory every day. First boards from lumber mills are cut into smaller pieces. Once the pieces are carefully cut with state-of-the-art equipment then some of the pieces are glued together for table tops and other similar items. Other pieces are made for legs, chairs, and thus get shaped accordingly. Sanding occurs at this point and some pieces get holes and grooves cut and drilled. Most of the holes and grooves can be cut by a programmable router. Works then either partially assemble furniture parts or assemble complete furniture items. Finally, the pieces are either placed in the white inventory section or are finished with oil or stain and placed in the finished inventory section. In a repetitive production processing system Stevenson (2010) further said is,...

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