This essay focus on the following issues that related to Classics Cabinets: the current production systems and processes used by the company, the effect of the new builders’ kitchen line on the company’s operations, the day-to-day operational decisions that Chinh Chu has to make with the current operating conditions to maintain effective production, and the impact the move to producing builders’ kitchens might have on the company’s financial structure; all arguments based on the these four operational management concepts: process design, capacity management, project management, and demand management and forecasting.
First of all, the current production processes and systems used by Classic Cabinets can be classified as project, job shop process, batch process, repetitive process, and continuous process (Gardiner 2006).Classic Cabinets was concentrated fully on custom-made kitchens, with the cli...
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...gins, because of this, lots of standard cabinet parts were left sitting around the plant in multifarious stages of completion, and changed the spacious manufacturing area into a factory clogged up with partially completed work. The next problem is that the profits of the company were not what they should be, although the sales of custom kitchens kept up stable and the sales of builders’ line were steadily increasing, it still cannot stop the raising costs of associated with the standard builders’ line and the gaining inventory costs of raw materials, and work in process and finished products. The last problem is the enhancing lead times for both custom and standard orders, and this was resulting in longer promised delivery times.
Also, in a more concise way, these three main problems can be summarized as one integrated issue and that is the capacity management.
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