A Discussion of the Problems in Classics Cabinets

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Classics Cabinets Pty Ltd is a company that designs and manufactures custom-built kitchen cabinetry, was founded in Springvale, Melbourne in 2001, and the two owners are siblings Chinh and Anh Chu. Chinh is a high skilled cabinetmaker, and now his role in the company is as the production and operations manager. Anh, on the other side, is an interior designer with qualification, and because she had found an interest in the financial and overall management of the enterprise, she is the de factor general manager. The original clients of this company are from Vietnamese community in the south-eastern suburbs of Melbourne, but along with the growing reputation of the company, their client base getting more diversity. Due to the diversity client bases and the informal identified roles for the two owners, arise some problems of the company. 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... ... middle of paper ... ...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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