The Highlights The Importance Of Operation Management For Furniture Manufacturing Company.

Analyzing the Operation Function of Furniture Manufacturing Company

Introduction.

1.1 Importance of operation management

1.2 Analyse the operation function of Furniture Manufacturing Company.

1.3 Evaluation of current operation management by using process model

2.1 Three E’s within the operation management

2.2 Impact of tension been the cost minimizations and quality maximizations in Furniture Company 

2.3 Significance of the five performance objectives.

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Conclusion.

Task 2.

Introduction.

3.1 Linear programming and evaluate the CPM and network planning.

3.2 Critical path method and network analysis.

3.3 Operational planning and Control in producing furniture.

4.1 Design the layouts for producing the furniture (chair)

4.2 Implementation of TQM within the existing designing process of company.

4.3 Approaches used for project management and quality control

Conclusion.

Reference list

Operation management is part of strategic importance to an organisation. Operation management plays very important role in reducing the company cost and the increase in production of the company. Operation management decisions are top level management decision making which is formed as per the activity which the organisations is associated with (Bhadur, 2008). For this current assignment furniture supplier company who provides finished goods to leading furniture retailers. Company is currently looking to review its existing operations management in order to improve the efficiency of the company. Apart from that, the study will also focus on the operation management process of the furniture company and also review the existing method of operation management (Bisen and Srivastava, 2009).

The operation function of the furniture company are been classified into two broad category manufacturing and innovating design for the furniture. Operation management system is part of an organisation, which helps to organise the activity, so every production system has an objective (Chopra and Meindl, 2007). Operation management of the organisation helps the business to achieve the supply and demand of the customers. While the operations functions is known for the producing the goods and services but it also needs the support from the input from the other areas of the organisations. Operation management has three major basic functional areas   of operating, input, processing output.

Operation management consist of the supply chain of the organisations which can be both external and internal. The external part of the supply chain would be supplier who provides the raw materials, equipments and other inputs to the organisations (Baligh, 2008). The deliver output that are goods sold to the final consumers. Various inputs from capital, labour to information are some of the major transformation process while managing the operation process. Operation process is backbone of the manufacturing company without which the company would have not enough scope to existence (Graphics.stanford.edu, 2015).

The chosen company here is wholesaler of furniture manufacturer who are selling their products to the stores. As the business is expanding, companies are looking to implement new form of operation management in order to meet the demand of the consumers (Chitkara, 2007). The chosen company has very much distinctive form of operation function.

Evaluation of Current Operation Management by Using Process Model

With the help of the above diagram, it has been found that, the chosen furniture company is known for its designing process. The design process of the company shows that, the major source of inspiration for the design of the company comes out of the innovations (Jiang et al. 2007). The operation management of the company shows that, company takes too much long process of manufacturing the furniture because of the large part of the time is taken in the production planning and strategy. The production structure is very much traditional and managing inventory strategy of business needs modifications. As the production of the company is increasing because of the demand of the products, the existing supply chain system has is pretty support the existing production but as the increase in order, company needs electronic and better operation management tool to manage the demand and supply for the customers (Kloppenberg and Opfer, 2007). With the help of new too much as six sigma , TQM , lean method and along with that Price 2 methodologies will be help the company to manage the leak within its operation system.

Input: Input process here depicts the wood and other equipment like adhesive, equipments etc are some of the major input. Then Furniture Company major suppliers are wood and plastics along with stainless steel along with metals pins are made to design the furniture (Kwak and Ibbs, 2009). Apart from that, land labour and capital is must require while manufacturing the furniture. Also g with wood and other major materials, labour, land and capital is required effectively to manufacture the products. during the time of input process some time company have extra inventory like wood , some time it has lower inventory which creates problems for the company from time to time.

Conversions: While converting the wood, labour is required. As the major labour are very much trained but while demand of the products is higher, company should look to increase its labour force. While converting the wood into beautiful form of the furniture, company make designs, work on the deigns to complete their work (Lee and Kim, 2009). In this phase, company pays attentions to convert the wood and innovate the design in order to bring new products in the market as suggest by the clients or the stores.

Monitor: After the conversions, the company must look to monitor the finishing of the products which has been dispatch by the manufacturing unit (Chapman and Ward, 2010). During the time of monitoring the products, the monitoring department check the quality of the furniture along with demand if the clients which needs to be matched at same time, the monitoring team last review the time allotted to the finished the products and the actual time taken to manufacture the products.

Output: This is the last phase of the production of the products, here company sends its finished products to stores who have given the orders. The output products are very much made as per the requirements of the company (Apte et al. 2011). One of the major problems within the output is that, logistics problems, most of the times, logistics creates problems while send the wrong products to the clients.

The Importance of the Five Performance Objectives

Economic: The economical side of the operation management depicts that whether or not company has enough fund to manage its operations. As the economies also suggest that, is the production of the company is cheaper or it is getting costlier. The economic condition of the operation management of the business is very much less costly and much effective but with rise in demand company is not able to manage the its operations. Increase in waste control has risen up the company cost of production (Baum, 2003).

Efficiency: As the production method of the company is very much traditional which is still using the assemble line production function which creating problems for the company. Company is not able to produce high level of the production because of the lack of the control the waste and finance; losses are high in this form of productions (Mustaghis-ur-Rahman, 2007).   The assembly line production function generally used by the large companies who are produces masses but the current company faces manufacturers stuck with large number of demand and large product re being called defective.

Effective: The existing production function is very much poor because of then rise in the demand of the products has made the company to look for the alternative operations. As the assembly line production function was good initially because of the initial demand of the products is very much lower and the company has enough time to complete the work but the company now facing tough competition in the market so the company must look to renew its form of operation management (Walsh, 2012). As the current form of operation very much give big good but the choices of defective and waste is higher.

Cost minimization and quality maximizations are one of the major mool mantra to stay in the competition within the current globalization market. Cost minimization objective is to reduce the required level of expenditure (Sule Adegoke, 2011). There are several cost benefits for the furniture company, one is prevention costs refers to all cost incurred that enhances the philosophy of doing it first right time first time is maintained. Furniture company operation management includes geared towards preventing problems occurred within the company.

Another major cost associated with the testing of the products and process to ensure that quality meets which will be required as per the client’s specifications (Trietsch and Baker, 2012). Some of the cost includes are cost of buying and maintaining a testing equipment , cost of expertise to inspect the products and the cost of dummy testing of the large amount of produced furniture.

There are tensions between the two variables such as maximizing the quality of the products call for higher cost in terms of manpower, materials and overheads. Furniture manufacturing is not trying to reduce as the company feels cost intends to reduce the quality of furniture produced. Therefore, the above situations only exist in the short run not for the long run. However, in the long run the higher would be the quality the lower would be cost because the organizations has enough clients to handle all the expenditure with higher amount of profit (Jiang et al. 2007). The existing organization has to face stiff competition from the ruler IKEA who is capturing the higher market by producing higher with lower cost.

Linear Programming and CPM

Cost: The furniture manufacturing company needs to keep the production price less in order to lower the cost of the products. The importance of this organisation is to generate more income and compete it with the existing and potential competitor in the global stage (Kerzner, 2009). If organisation is able to manage the quality of the products by keeping in mind the quality of the products would help the company to reduce the tensions between two major variables.

Quality: It is one of the most important parts in order to gain the long run benefit. If the quality of the products is not up to date, the consumers will be dissatisfied and change their supplier of the products. Operation manager needs to ensure the quality of products is maintained at all time high. In order to achieve the high quality, manager of the furniture company should recruit experts.   Currently, company has able to achieved ISO 9001: 2001 within its manufacturing concern.

Dependability: Customers today are highly choosy about the products they purchase. Dependability simple describes keep the promise. Customers are vulnerable if the company response within the time period and deliver the quality; this will encourage the clients to purchase more (Chitkara, 2007). The existing furniture company has problem is it delivery of time of products because of the poor logistics.

Speed: The existing furniture company has or delivery of services which why most of the clients are getting late delivery of the products. The demand of the customer of fulfill in the given time is one of the major essence of the contract (Carmichael, 2010). Speed   is one of the major survivals for the business in the existing competitive business.

Flexibility: In the current changing market environment, the furniture company is flexible enough to handle the changing demand of clients. As the innovation is one of the major qualifications of the company. However, the technological advancement within its operation management is poor which why the company is not able to deliver the product within the given period of time (Chopra and Meindl, 2007). Flexibility here refers the changing technology within the operations or supply chain system will improve the company quality and cost. With the implementation of TQM, Lean or Prince 2 methodologies will be helpful in achieving the flexibility.

Conclusion

As the product from the wide variety and wide brand has capture the market has of the local firms by using cost innovations with quality management within the any form of the organisations. Company has assembly line production and operation management which is old and is not able to match up with the existing technology like TQM and Six Sigma. Apart from the company is not able to maximise its profit because of the high wastage and poor deliver of the products to the clients.

The study will also takes through the implementation of new operation policy and management which will give an insight of the implementation of the effective operation management at the furniture supplier company (Singh, 2009). Along with that, the study will also be on focusing the network diagram and the implementation of TQM within the existing designing process of operation management.

Operational Planning and Control in Producing Furniture

As the furniture company is looking to implement TQM within their operation management, company need to understand the shortest way to produce the products. Linear programming is one of method of operation research the company is decision making process. Linear programming helps the company for minimizing the cost and maximization of profit (Baligh, 2008). The furniture company will be able to use the linear programming in minimizing the cost and maximising the sales unit which will increase the profit of the company. Therefore, company is looking to implement TQM within its manufacturing supply chain unit.

Critical path method: It helps in implementation of TQM within the company by assessing the activities of the chosen project. Apart from that, CPM also helps to make the order in which the implementation will take place along with activities which will be taken place followed by others (Kloppenberg and Opfer, 2007). One of the major parts of the objectives of the CPM is to assess the time taken during the whole project along with resources.

Network planning: Network planning helps to reduce the complexity of task. In this study, implementation of TQM within the existing supply chain system of the furniture company, network diagram will give the time of the project which will help in scheduling of the project (Kwak and Ibbs, 2009). Apart from that Network diagram will also give variables and framework for trade off along with analysing the sensitivity of the company current performance. This includes validations work sheet and finally evaluating the alternatives options via cost analysis and intangible analysis which will help to implement the TQM.

Operational planning	Conversions	Expected benefit
Forecasting demand	The demand for the particular furniture is forecasted by the company or assess the demand of the product and accordingly order the wood	High
Assemble stock	Assembling the stock like wood, nails, paints, steel and adhesive	low
Cutting the wood	Items are being machine rather than assemble from the parts. Manufacturing as per the order of the clients (Apte et al. 2011).	Low
Designing and using adhesive and various other materials	Innovating the style of furniture along with selecting the design, greasing and polishing the furniture	High
Checking the quality	Quality controller check the quality by assessing the furniture strength and weight and size as per the client demands (Trietsch and Baker, 2012).	High
Inventory	Entire finished product are being keep for the dispatch by using the batch processing’s.	Low
Logistics	Final send into the stores and from there to consumers.	Medium

Layout design for chair production	Analysis
Designing the layout	Creating the full size images of chair patterns
Shape the rear legs	In order to do so choose the best lumber , ginding to size and stat cutting and shaping the chair legs
Preparing the remaining parts	Picking of the right boards as per the strength of the board (Apte et al. 2011).
Mortising	Create layout and cut the mortises for the chair
The loose Tenons	Cutting the losses tenons by use of assembling line production and use fine joinery and starts dry fittings (Kwak and Ibbs, 2009).
Shape the legs and rails	Shaping the legs and add an stylish curvature to the face of   seat
Start the chair back	Shape and cut the joinery for the crest railing and back splat
Assemble and glue up and Spring up	Assembling the chair in sections and spring the chair (Lee and Kim, 2009).
Upholstery using cloth and cushion and finishing	Complete the chair with slip seat and easy ti apply finish.

Activity	Description	Activity duration (days)	Depends on
A	Preparing the technical’s specifications	10	-
B	Tender processing	25	A
C	Work orders	3	B
D	Supply of equipments	60	C
E	Supply of TQM	20	C
F	Supply of fittings	10	C
G	Civil work	15	C
H	Installations	5	E,F&G
I	Monitoring	10	D&H
J	Dummy testing	2	I

Activity	Depends on	Normal time	Crash time	Normal cost £	Crash cost £
A	-	10	8	4900	6000
B	A	25	24	3000	6000
C	B	3	2	2000	3300
D	C	60	58	1600	3000
E	C	20	19	5000	6000
F	C	10	9	1800	4000
G	C	15	13	6000	8000
H	E,F&G	5	4	8000	9000
I	D&H	10	9	3000	4000
J	I	2	1	1000	2000

 

Sales: In sales, company should look t use E-CRM, which will help the organisations to maintain contact with clients as asses their needs and demand time to time. E-CRM is one of the major effective tools to analyses the quality control (www.epa.gov, 2015).

Inventory: In order to control the inventory , JIT must be implement since the oragnisation is JIT will maintain intact the inventory management as per the demand of clients of the stores.

Purchase process: The purchase process can be maintained via E-procurement process which will help to analyse the quality of the woods and the quantity demand by the company. It will help to supplier remain const with the company (Project.mvps.org, 2015).

Conclusion

From the above, it has been found that, Furniture Company is looking to implement the TQM within their supply chain system. Apart from that, network diagram ahs help to gain the shortest path method of the implementation of the TQM. Lastly with the help of E-procurement E-CRM and JIT , company will be able to assess the quality of the furniture and wood and the finished products.

Reference list

Bhadur, R. (2008). Production and operation management. Jaipur, India: Book Enclave.

Bisen, V. and Srivastava, S. (2009). Production & operation management. Lucknow, India: Word-Press.

Chopra, S. and Meindl, P. (2007). Supply chain management. Upper Saddle River, N.J.: Pearson Prentice Hall.

Singh, M. (2009). Operation management. New Delhi: Sonali Publications.

Baligh, H. H. (2008) Organization Structures: Theory and Design, Analysis and Prescription, 5th ed. Heidelberg, New York: Springer Verlag.

Carmichael, D. G. (2010) Project planning, and control. 5^th ed. Canada, New York: Taylor & Francls.

Chitkara, K. K. (2007) Construction project management: planning, scheduling and controlling, 7th ed. Hoboken N.J: Wiley.

Kerzner, H. (2009) Project Management: A Systems Approach to Planning, Scheduling, and Controlling, New Jersey: John Wiley & Sons

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Kloppenberg, T. and Opfer, W. A. (2007) The current state of project management research: trends, interpretations and predictions. Project Management Journal, 33(2):5–19

Kwak, Y.H., Ibbs, C.W., (2009) Calculating project management’s return on investment. Project Management Journal, 31 (2), 38–47.

Lee, J. W. and Kim, S. H. (2009) An integrated approach for interdependent information system project selection, International Journal of Project Management, 32, 111–118

Chapman, C. and Ward, S. (2010) Managing Project Risk and Uncertainty, 5^th ed. New York: John Wiley & Sons.

Apte, U., Ahn, S. and Guignard-Spielberg, M. (2011). Optimization of Bank Check Sorting and Clearing Operation. Technology Operation Management, 2(1), pp.16-28.

Baum, A. (2003). Real estate: investment or operation?. Property Management, 21(1).

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Walsh, K. (2012). Could simulation help operation room conflict management?. Medical Education, 46(2), pp.234-234.

Sule Adegoke, A. (2011). Measuring Process Effectiveness Using Cpm/Pert. IJBM, 6(6).

Trietsch, D. and Baker, K. (2012). PERT 21: Fitting PERT/CPM for use in the 21st century. International Journal of Project Management, 30(4), pp.490-502.

Graphics.stanford.edu, (2015). Interactive Furniture Layout Using Interior Design Guidelines.

www.epa.gov, (2015). Wood Furniture Manufacturing Operations neshap implementation document.

Project.mvps.org, (2015). Network Analysis.