Which type of production processing-job shop, batch, repetitive, or continuous – is the primary mode of operation at Stickley Furniture? Why? What another type of processing is used to a lesser extent? Explain.
In essence, the production process used in the company greatly depends on the nature of business activities and occurrences in that organization. In manufacturing, the process of production usually consists of several steps or stages, more-or-less like the stages of products in markets, which—in most cases—starts with a costly and highly flexible process then advances into areas such as mechanization, automation, and standardization occurring in the less costly and less flexible process (Hayes & Wheelwright, 1979). Based on the production-process matrix proposed by Hayes and Wheelwright (1979), there are usually four types of production processes. These are:
- The Job Shop Method: This method majorly entails a single worker or a group of workers handling the entire work in question. It usually allows for a high degree of flexibility in the project just like the batch method. Moreover, job shops tend to be low in volume with a special focus on meeting the client’s needs whenever an order is placed.
- Batch Method: As aforementioned, this method allows for a high degree of flexibility. The main distinction from other methods is that, in batch processing, work is usually divided into small or medium-sized pieces or volumes of process products commonly termed as batches. The Batch method also has the characteristic of producing several work inventories waiting to progress from one step of the project to another.
- Repetitive Method: This usually involves a pre-planned set of tasks that tend to repeat themselves frequently. The repetitive method is mostly recommended for high-volume productions of a particular product or a group of products. A crucial consideration in this method is the layout used in meeting the desired needs of a product. This, probably, is the reason it tends to be associated with products having high capital intensity. A good example here is the processing done in fast food joints like juice and soda vendors.
- Continuous Method: This entails a continuous method of obtaining raw materials then processing to completed products. Just like the repetitive method, the continuous method is best suited for high demand and well-standardized products. A perfect example here would be the demanding process used in drilling and processing oil through oil pipelines.
So, among these methods, which one would be best in the production process for Stickley furniture and which one would be used to a lesser extent? Well, to begin with, Stickley furniture does not have 24/7 operations requiring continuous work. Additionally, the company is reported to stock goods in the white inventory thus ruling out the option of the continuous method. Moreover, even though small groups of workers do some selective work on “jobs’, as per the case’s reference; the Job shop method is ruled out since the processes at Stickley are not necessarily handled by an individual or group of people right from the moment the wood arrives at the plant until it gets to the store.
Consequently, the Batch Method appears as the most befitting method for Stickley furniture based on the fact that, in the production process of the company, we see goods produced in various batches in aspects such as cutting of wood. Also, the work occurs in a rather pre-planned way, which is typical of the Batch method. Regarding the method that could be used to a lesser extent, the repetitive method appears as the best choice.
This is based on the fact that, in Stickley’s furniture, we get to see a lot of repetitive work done in the company in stocking the white inventory in the bid to ensure an adequate supply of furniture to meet the high demands in the market. Moreover, in the repetitive method, pre-planning is considered as a key issue and, in the Stickley furniture case, this is typified by the pre-scheduling done in the company 8-10 weeks in advance.
How does management keep track of job status and location during production?
The answer to this question is explicitly given under the case study section named “Production Control”. In this section, a detailed account of the bar-code system used by Stickley furniture is given. Once a job is completed, a worker is charged with the responsibility of sending a bar code to the production control office where the staff scan it then logged into a computer system that keeps track of all the data and information sent to it (Stevenson, 2009, p.698-690).
Remarkably, over recent times, there has been increased popularity and adoption of Information and Technology systems in many organizations. According to (Finch, 2006, p.20-35), this is based on the fact that many IT systems have been repeatedly documented to augment efficiency and effectiveness in organizations. And as is common knowledge, a business entity that boasts efficiency and effectiveness definitely has a competitive advantage over other market players.
Moreover, for a long time, furniture companies have often used manual data and process management methods to keep track of their managerial endeavors. However, based on the challenges of manually handling records, many organizations of this kind have, reportedly, ended up losing crucial data and information. Once such records information is lost, then a myriad of other detrimental effects can occur in the company.
It is based on such dire ramifications, and the need to avoid them, that the bar-code system used by Stickley Furniture is greatly appropriate. Through the needle-point-precise ways in which the bar-code sends relevant production information to the production office where proper scanning is done and records kept by the computer; very few errors emerge and efficiency is remarkably ensured.
In this regard, it is however advisable that the computers are kept safe through the use of security measures such as authorizations to particular personnel, use of passwords and regularly scanning the computer for viruses. It is only by adopting such measures that we can be assured that the crucial information stored in these computers stay safe. Even more importantly, the workers who send the bar-code of the work done should ensure that they key incorrect information to avoid any discrepancies in the records which might lead to the eventual storage of wrong information.
Suppose the company has just received an order for 40 mission oak dining room sets. Briefly list the kinds of information the company will need to plan, schedule, and process this job
The planning and scheduling of any given project are as important as the process of implementing it. Without a good plan, a project is as good as not being ventured into. In the case of Stickley, receiving an order of 40 mission oak dining room sets necessitates the creation of a strategic plan and schedule for the job. In doing so, the following kind of information will need to be planned for.
Firstly, a plan should be put in place for the precise specifications of the oak dining room sets. Here, issues such as the wood type to be used, the designs to be used, finish being used, and color, among many others.
Secondly, the company needs to do an approximation of the entire costs required to make the sets right from the design to the finish. Depending on the nature and rules of payments in the company, funds should be given to the relevant authorities.
Thirdly, the company can then figure out the number of pieces required to assemble the furniture. In doing this, other considerations such as the number of furniture present in the white inventory or how many furniture have been finished and are ready for shipment.
Fourthly and lastly, having known the specifics of the products and having put raw materials in place; they can then move into the actual production stage where work can be done using the aforementioned batch method so as to produce the pieces required.
What benefits, and what problems, would you expect, given the company’s level production policy?
Going by the case study, a good measure of positive benefits can be expected from Stickley furniture. To begin with, we can expect the company to maintain a tight yet stable workforce where crucial employees are sustained so that the company does not have to hire people periodically (Stevenson, 2009, p.698-690). This, in one way or another, will help in ensuring that workers who have been in the company are assured of their jobs. In addition, changing staff is normally a hectic and costly process that entails a lot of dynamics. By retaining the workers, Stickley furniture will be able utilize available resources in a cost-effective way while offering continuity to work done.
Another advantage that would be expected from the company’s level production policy would be in terms of timeliness and delivery of products in an effective manner. In the production matrix, and many other crucial business facets, delivery of products and services is a crucial consideration when assessing a company’s level of production policy. Business systems with timely or speedy deliveries, for that matter, are considered to be effective since they are able to satiate the needs of their clients appropriately while also being able to serve the maximum number of clients (Hayes & Wheelwright, 1979).
Additionally, Stickley’s level of production offers modicum flexibility to the workers. Such flexibility accords the workers an opportunity to freely express their ideologies in the production process. Again, flexibility creates room for customizations to be made during the process of production. Even more importantly, flexibility allows for changes to be made in the products in case some fluctuations occur in the market. Effectually, such flexibilities offer a chance for the development of new and better or high performance design products by the company. In turn, this orients more satisfaction by the already existing clients while offering new market ventures and a chance for market advancement by attracting new clients.
As a key note, it is worth stating that, even though factors such as flexibility, cost-efficacy, on-time delivery, speedy development of products, and the ability to customize are considered to be important; the most vital aspect in production is the quality products—as detailed by Stickley furniture. Nonetheless, most of these factors tend to work concomitantly by reinforcing one another. If ultimate success is to be expected from the company’s level of production policy, it is therefore unavoidable that all of them are considered by the management at the same time.
It is however important to state that, in spite of the immense benefits that can be expected from the level of production policies at Stickley furniture; a couple of problems can be expected from it, as well. These problems are briefly detailed below.
To begin with, dynamic nature of Stickley’s level of production policy presents a series of issues and factors that have to be keyed if success is to be achieved. Examples of these factors include: identifying the objectives of production process, determining the fitting mix of production facilities and equipment that will give best results, knowing various workers and their potential with regards to the job at hand or even the monitoring techniques that will be used by the management to study and moderate the entire production process.
The chances of one of these dynamics failing are quite high. In fact, in most production processes that are not keenly planned or well-coordinated, such failures are normally common. And as we all know, the failure of just one aspect of a production process can have a detrimental effect on the entire process thus creating a myriad of problems for one or another aspect of the production.
On another note, if a worker is reserving physical space for a particular inventory, some new technologies and extra costs have to be involved. In effect, this entails more spending by the company and thus increases in costs—which will definitely have an effect on the overall product. In addition, usage of the “just in time process” in such an endeavor might result in nearly no physical inventory.
Can you suggest any changes that might be beneficial to the company? What are they?
Firstly, over the recent times, the Total Quality Management (TQM) approach has been overly used by many companies with positive results witnessed thereof. In essence, the TQM approach entails the use of quality methods to constantly or periodically change business processes and make them more efficient. In TQM, the changes are normally made gradually thus making it easy for its implementors to monitor the progress being made. It is for this reason that I would highly recommend that this approach be implemented by Stickley’s management.
Secondly, in case Stickley furniture starts witnessing problems with their processing systems, based on implementation or adoption of approaches like TQM, they can consider proven methods of system rectification like re-engineering. In most instances, re-engineering is used to make huge or radical changes in companies that need to be solved urgently and adequately. At the moment, however, Stickley has not reached the phase whereby urgent changes are required thus no need for re-engineering.
Thirdly, Stickley furniture should consider the usage of a production method like “just in time’. This will greatly help in revolutionizing the flexibility of operations thus creating an opportunity for easier customizations and better production.
Fourthly and finally, cost-effective methods should be adopted by the company to help reduce production costs thus ensure more profitability. Also, this will create a situation whereby the prices of products and services by Stickley furniture are cheaper and thus more affordable to more clients.
References
Finch, B. (2006). Operations now (2nd ed.). Boston: McGraw-Hill Irwin.
Hayes, R., & Wheelwright, S. C. (1979). Link manufacturing process and product life cycles. Harvard Business Review, 133–140.
Stevenson, W. J. (2009). Operations management (10th ed.). New York: McGraw Hill/Irwin.