6. INFRASTRUCTURE
Infrastructure is amalgamation of function support, manufacturing planning and control systems, quality assurance and control, manufacturing systems engineering, quality assurance and control, manufacturing systems engineering, work/organisation structures, clerical procedures, wage/bonus systems etc. In the development of the manufacturing infrastructure for Daval Furniture Company Limited, the various aspects of infrastructure are built around the aspect to win orders. The aspects were also developed in order to ensure that the infrastructure choices are consistent with the needs of the market. It should predict a clear connection between the manufacturing process and the infrastructure options.
6.1 Function Support
Total Quality Management (TQM) will be used to support the manufacturing processes to ensure quality and minimise defects. The manufacturing unit will be according to the matrix type organization structure to provide more flexibility in resource allocation and communication. Just in Time (JIT) approach will be introduced to achieve and meet the demands and expectations of the customers. TQM will improve the company’s effectiveness, efficiency, competitiveness, flexibility and delivery to customers. All function other than manufacturing will be handled in the registered office at Spa Fields Industrial Estate, New Street, Slaithwaite, Huddersfield, HD7 5BB. The training and development department will be formed at the same location.
6.2 Manufacturing Planning and Control Systems
The planning and control systems must be used to support business and market needs (Hill & Hill, 2009). The production schedule is proposed for high-volume batch which has the capability to manage changes. The produced mat...
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...king Structure:
The matrix structure is proposed for working environment. In matrix structure staff is grouped by both function and products. This working structure will allow exchanging the expertise to another department if requirement rises or when necessary. This structure will improve efficiency of the staff and effectiveness of administered strategy of the organization.
6.8 Organizational Structure
The proposed structure is decentralised line-of-business organisation structure for Daval based on the order winner criteria of Quality. This will ensure the production of quality living room furniture product delivered to the shop floor enhancing the monitoring of the entire process. This will ensure that quality product according to local requirement and customer choice is delivered to their home. It will enhance the customer satisfaction and trust in the company.
IKEA is one of the huge successful retailers in the world whereby has 280 stores in 26 countries by the year 2010 and had been visited by 580 million shoppers. IKEA has elegant designed products with low priced. IKEA’s sale has increased from 4.4 billion in 1994 to 23.5 billion in 2010. The author has attached the sales report in appendix 1 and 2. The founder was Ingvar Kamprad whereby he is still a dynamic advice-giver of IKEA despite his age reached 80. IKEA had influence worldwide market widely with a good strategic marketing tool. IKEA products are cheaper 30%-40% compare to other retailers. Besides that, Asian market convinced with their economical western product that has complete household products. In this chapter, the author had explained on the overall IKEA’s history. In the next chapter, had explained on four important macro elements followed by the macro elements effect towards the organization, and also given suggestions to manage the organization according to the macro elements.
Methods for quality improvement offer numerous benefits and there are many models to use for quality improvement. These models and features have traits in the up to date version of total quality management practise models and are of numerous benefits, with the likes of six sigma and kaizen model using these traits (Royal Charter, 2011)
Production planning and control is necessary in making decisions concerning utilization, acquisition, and allocation of resources in production processes with the objective of satisfying customer needs effectively and efficiently. It is used in determining workforce level, assigning of overtime work, sequencing the order in which tasks follow and deciding on production quantities (Graves 1999).
The structure of employees at the company forms a simple organizational framework. The organization is led by a manager in charge of all the employees. Under his is the Store Cashier who handles financing and payments from the customers. Cashiers must be knowledgeable in the prices of the different products as well as the price and works with the Assistant Store Manager. The last level is the level of sales Associate who provide outstanding customer service for the company along with teams of merchandisers.
KEDA was founded in 1992, mainly into manufacturing of Ceramics Machinery. The other major offerings by Keda involved stone processing, building materials processing and energy resource management. They had more than 2000 employees and a broad product offering by 2010. In this industry, managing infrastructure for inventory was of extreme importance because of the various, customizable offerings across multiple plants. It had become a world leader in building materials machinery by early 2000s. All the units including sales & marketing, logistics, production & inventory was acting separately. Thus for a sustainable business, it was highly important to move from decentralization to a centralized system. For this purpose
Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the
Various competitors have adapted or created a similar approach to marketing furniture and fittings and therefore Ikea’s market share is being threatened. Most of Ikea 's rivals are located in Europe where Ikea makes most of its revenues, but the competition is very limited everywhere else due to Ikea’s excellence in cost leadership and differentiation in their products.
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which the primary mode of operation should be and exactly why. A detailed description on how management can keep track of the job status and location during production will also be addressed. Finally, there will be a recommendation on they type of changes that need to occur that will be beneficial to the company and at the same time add value to the customer. This paper will conclude with summary of the major points.
The production facilities of the company and its human resources are one of its major core competencies leading to low cost high quality products and helping the company have highest margins within the industry. The company should look at technology to diversify its production in order to decrease reliance on scrap steel.
Ownership and control of production ; vertically integrated manufacturing operation to enable its constant introducing of new items and also ensure short lead time
This implies that there is no relation between different cells and they is virtually no inter cell movement. As the result material handling cost shoots up and giving rise to many accidents. Data related to the products that were produced by the company were collected and it came out be 900 different products depending upon the brand, size, weight, volume and so on but they can be categorized in 120 different category according to the generic name. Company has 12 work center/cells to manufacture these products and the main task is to develop the alternative layout design in CM environment(intra and inter design). It was further found by detail investigation that 90% of the work centers has single machine so there is no need to develop the intra-cell layout plan and now only inter-cell layout design is to be made with constraints imposed by the company and some of them are as some work centers cannot be re-located as they require special environment which is made around them and if any re-location is made to the work centers then re-installation of the environment has to be done which means it will cost large amount of money to company moreover some of the work centers should be close as they are sharing same utilities such as mixing tank. The models were prepared satisfying all the constraints and presented to decision makers, impressed with these models they imposed some more constraints and then models were revised and new models were created agreeing to all restrictions. Finally, Two models were presented to company as the alternatives and suggested to use any one of them. Presently, company is operating one of the
Corporate Social Responsibility is the responsibility that goes beyond economic and legal obligations. It focuses on acting ethically and contributing in a positive way to society. IKEA is an international company that has the capability to play a large role in different societies around the world. The company uses their CSR Report to effectively show whom they are, what they’ve done and what they plan to do in order to remain a successful brand and have a positive impact on the communities around them.
Bob’s suggestion to the R&D department is mechanistic organisational structure. This organisational structure divides the tasks, duties and responsibilities among the company members. There are four main principles of scientific management of mechanistic organisational structure, which include developing the standard of work practices and standardising the used by workers, selecting and training every worker scientifically, ensuring the work done correspond to the standard by collaboration between management and employees, planning and making task assignments by management and carrying out assigned tasks by employees. In addition, bureaucracy is another characteristic of mechanistic organisational structure. Bureaucracy involves six features,
Total quality management represents both a social revolution in the work place and a rigorously effective approach to professionalism and success. Total quality management is a management system that is an integral part of an organization's strategy and is aimed at continually improving products and service quality so as to achieve high levels of customer satisfaction and build strong customer loyalty .In other words, the true Total Quality organization will eliminate all competition other than from other Total Quality giants. Many companies have benefited from an emphasis on TQM; however, it does require a considerable amount of company wide commitment to be successful . The customer doesn't know what is technically or organizationally feasible. So the key, challenge to a competitive organization, is to raise the expectations of the market place by providing goods and services at quality levels higher than those offered by the competition.
Matrix structure is first introduced in the aerospace industry in the 1960s and become one of the popular organizational design options in today’s business and industry (Derven & Alexandria, 2010). Burns and Wholey (1993) poinited out that matrix structure were used in advertising agencies, aerospace firms, research and development laboratories, hospitals, government agencies, and universities. Matrix structure is the combination of two or more different structures and take the advantages of the pure functional structure and the product organizational structure (Robbins & Judge, 2011, p. 497). The employees in the matrix may have two bosses: their functional department managers and their product managers. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and report to a project manager while working on that project. In many organizations, a matrix structure is implemented to address the requirement to do more with less and become more agile. The matrix structure, which focuses on horizontal as well as vertical management, has become more widespread as a result of globalization and the...