Q1. What kind of decisions should Chad Thomas make on a daily basis to make the company's operations work effectively? In the long term. Tactical or short-term decisions bring short-term impacts and consequences to the organization. 1) Layout of manufacturing process and equipment configuration - The importance of relayout is to shorten setup time 2) Resource allocation And people assigned to each process.
Listed below are the issues found in the case of the Chad creative concept. How will production of standard furniture affect Chad's creative concept and its economic benefit manipulation? How can we improve the business of the company and delay the manufacturing process to satisfy the market demand of the two furniture manufacturing lines? What can management can do to reduce production costs while maintaining customer satisfaction? Below is the goal we are trying to achieve to solve the problem faced by Chad's creative concepts. Determine the operational and financial impact of manufacturing standard furniture. Identify ways to improve company operations to meet increasingly stable standards and custom furniture needs. Reduce manufacturing costs without sacrificing product quality and customer satisfaction
Chad's creative concept is the idea of Thomas Chad. The company is a manufacturer of wooden furniture for American designers and holiday cottages. The company is very popular and began to produce custom-made wooden furniture with a reputation for its outstanding craftsmanship and innovative design. As the company expanded, we decided to diversify our business by manufacturing standard furniture. As the company 's reputation grew, this decision was made because we were able to sell some of the more popular designs to retailers in this region. At the same time, this allows the company to penetrate the price-sensitive new customer base. Although custom-made furniture is relatively expensive, customers can choose the type of wood and the design of choice, so they constitute the main part of customer order.
The creative concept of Chad began with an excellent vision of manufacturing custom made wooden furniture for holiday cottages. As the demand for products continues to increase, people are getting more and more popular, they prove themselves and are winning customer trust with subtle and elusive preferences. The company has the opportunity to invest in more standard furniture. This effort may have worked, but it affects the company's operation, marketing, and finance.