Case Study:
Hudson’s Alpine Furniture
Ozhelpassignment@gmail.com
The Hudson’s Alpine Furniture was founded in 1998 by
Della Hudson and Ralph Hudson in the regions of Queanbeyan NSW. It is
relatively small firm which specializes in manufacturing of customized timber
furniture. The initial phases were marked by a smooth phase of orders.
Recently, the organization is facing a tough time as the number of commercial
orders are increasing. This paper focuses the production and operation
management techniques used by the firm. Also, a set of recommendations have
been provided in the paper which can be applied by the organization to bring in
a greater degree of efficiency (Greene 1994).
It has been analyzed in the case study provided that
the management lacks a dedicated production department. The management in the
traditional times have been dealing with the customised private users where
delivery on time was relatively less important compared to value and quality of
the furniture ordered. It is also observed that the organization is applying
the Intermittent Production system. This type of system is useful when the
required orders are constantly changing and the specifications have to be
changed substantially with every new order. The other drawback identified with
the current operational techniques in place is that the senior management is
lacking the required time for strategic thinking. Most of their respective time
goes in giving approvals for the peripheral issues. This should be intuitively
changed to delegation of the authority to a specialized department who will
meet the senior management once or twice in a week to get the due approvals on
all the relatively smaller issues. The production manager would also be
empowered to take decision of similar nature unless it is of a different nature
which would require a discussion with the senior management. It is also
identified that Hudson Alpine Furniture must not at any cost neglect the existing
opportunities which they are presented with the given increase in the
commercial orders. This will potentially lead to expansion of their company.
Thus, a there is a great need to devise out strategies which can cater
efficiently to both the needs of the customised orders and that of the
commercial orders, as both of them have a different nature (Varey 1995).
The Hudson’s Alpine furniture had a vision that they
wanted to create a demand for customized goods and they have certainly
succeeded in achieving that. However, with this has come an additional
opportunity where in the commercial users have also fancied their offerings of
furniture and are eager to use the products. This indeed is a result of the
excellent services that have been provided by the firm for their private users.
One of the differences between the private users and the commercial users is
that the commercial users require huge volume of orders and often the same has
to deliver on time where time is the most important essence. This is not found
in the case of private users as they are more concerned about the value of the
product offered and things like quality and durability matter a lot to them. The
commercial users are also highly price sensitive in nature and they do expect
certain concessions when they order bulk quantities. They are not very
possessive about the quality but timely delivery matter a lot to them. Also, it
can be observed that customised products take a much longer time in processing
of the completed work in comparison to the commercial products where no details
have to be checked and hence takes a shorter time in processing. Thus, the two
orders should be handled by using different techniques and strategies as the
requirements of the two orders are different and hence the system to handle the
order should also be different (Whitford 1998).
ozhelpassignment@gmail.com
The organization currently serves both of these
potentially different market segments which are quite different in their
characteristics as shown above. The orders for both are manufactured in a
single manufacturing unit in Queanbeyan (close to Canberra). The raw materials
that are used are of similar nature. The capacity of the manufacturing unit is
limited and the huge orders received leave out huge volumes of work in
progress. This causes virtually no option for the firm to accept more orders
and they are not in a state to accept more orders. Hence, there is a need to
being in a change in their operational and production techniques so that they
better manage the flowing in orders with greater ease and efficiency.
The current
scenario in the organization lacks a clear definition of a product manager who
can account for taking responsibility at various stages of production. Hudson’s
Alpine Furniture lacks a clear definition in their operations and that is why
they are facing troublesome time as the production and sales orders came from
different market segments (Whitford 1998).
The operations in Hudson Alpine Furniture
organization needs to be redefined so that the different involved departments
have the required clarity while operating in their various departments.
Initially, they need to focus on analysis and
designing of the process that they follow. They need to identify clearly how
much does it take for a normal commercial order and how much turnaround time to
give final shape for a normal private order. There can also be quality
management team which would be dedicated towards checking the quality of the
manufactured furniture. The complaints of the end customer would also be
noticed by him so that the same is not repeated in the future. The supply chain
management holds which is highlighted in the figure below is main importance
for Hudson Alpine Furniture House firm and they really have to identify and
prioritize the orders so that they are able to cater to the respective needs of
the various different customers which are identified as the commercial users
and the private users. Lastly, there is a need to manage the project overall
which can be handled by the senior management as opposed to handling the daily
peripheral activities which is happening currently in the organization.
Operating in this manner would give them a snapshot view of the operations and
hence they would be in a better position to handle the respective affairs of
the organization.
ozhelpassignment@gmail.com
Figure
1
Source: (McQuire 1999)
The diagram below also provides some useful insights
for the Hudson Alpine Furniture House. The first is to clearly identify the
market place in which they are operating. As given in the case study, the main
customers are the private and the commercial users of timber furniture. It is
safe to assume that the growing numbers of orders in the commercial customers
is a direct result of the excellent services provided by Hudson Alpine
Furniture to their respective private users. The next parts of the diagram
below shows the corporate strategy which is interlinked by the finance
strategy, operations strategy and the marketing strategy. The pre planning
stage includes factors such as development of the product and the location of
the plant. It also clearly charts out right in front of the concerned
department and the senior management what peripheral things are required to be
given and undertaken for various smaller tasks that would ultimately be used
for the final production process. Also, the diagram above clearly gives the
requirements which need to be considered upon the planning stage. Thus, it
becomes an important utility as far as the management of the affairs concerning
pre planning, planning and control are concerned. The same is lacking in
Hudson’s Alpine Furniture firm where the owners have virtually assumed the
position of handling all the departments of the organizations. The same notion
needs to evolve to better suit the needs of the changing and increasing demands
and resulting revenue orders.
Figure
2
Source: (McQuire 1999).
To get the full project, please buy the Assignment
by using this Link
ozhelpassignment@gmail.com
The Hudson’s Alpine Furniture was founded in 1998 by
Della Hudson and Ralph Hudson in the regions of Queanbeyan NSW. It is
relatively small firm which specializes in manufacturing of customized timber
furniture. The initial phases were marked by a smooth phase of orders.
Recently, the organization is facing a tough time as the number of commercial
orders are increasing. This paper focuses the production and operation
management techniques used by the firm. Also, a set of recommendations have
been provided in the paper which can be applied by the organization to bring in
a greater degree of efficiency (Greene 1994).
It has been analyzed in the case study provided that
the management lacks a dedicated production department. The management in the
traditional times have been dealing with the customised private users where
delivery on time was relatively less important compared to value and quality of
the furniture ordered. It is also observed that the organization is applying
the Intermittent Production system. This type of system is useful when the
required orders are constantly changing and the specifications have to be
changed substantially with every new order. The other drawback identified with
the current operational techniques in place is that the senior management is
lacking the required time for strategic thinking. Most of their respective time
goes in giving approvals for the peripheral issues. This should be intuitively
changed to delegation of the authority to a specialized department who will
meet the senior management once or twice in a week to get the due approvals on
all the relatively smaller issues. The production manager would also be
empowered to take decision of similar nature unless it is of a different nature
which would require a discussion with the senior management. It is also
identified that Hudson Alpine Furniture must not at any cost neglect the existing
opportunities which they are presented with the given increase in the
commercial orders. This will potentially lead to expansion of their company.
Thus, a there is a great need to devise out strategies which can cater
efficiently to both the needs of the customised orders and that of the
commercial orders, as both of them have a different nature (Varey 1995).
The Hudson’s Alpine furniture had a vision that they
wanted to create a demand for customized goods and they have certainly
succeeded in achieving that. However, with this has come an additional
opportunity where in the commercial users have also fancied their offerings of
furniture and are eager to use the products. This indeed is a result of the
excellent services that have been provided by the firm for their private users.
One of the differences between the private users and the commercial users is
that the commercial users require huge volume of orders and often the same has
to deliver on time where time is the most important essence. This is not found
in the case of private users as they are more concerned about the value of the
product offered and things like quality and durability matter a lot to them. The
commercial users are also highly price sensitive in nature and they do expect
certain concessions when they order bulk quantities. They are not very
possessive about the quality but timely delivery matter a lot to them. Also, it
can be observed that customised products take a much longer time in processing
of the completed work in comparison to the commercial products where no details
have to be checked and hence takes a shorter time in processing. Thus, the two
orders should be handled by using different techniques and strategies as the
requirements of the two orders are different and hence the system to handle the
order should also be different (Whitford 1998).
ozhelpassignment@gmail.com
The organization currently serves both of these
potentially different market segments which are quite different in their
characteristics as shown above. The orders for both are manufactured in a
single manufacturing unit in Queanbeyan (close to Canberra). The raw materials
that are used are of similar nature. The capacity of the manufacturing unit is
limited and the huge orders received leave out huge volumes of work in
progress. This causes virtually no option for the firm to accept more orders
and they are not in a state to accept more orders. Hence, there is a need to
being in a change in their operational and production techniques so that they
better manage the flowing in orders with greater ease and efficiency.
The current
scenario in the organization lacks a clear definition of a product manager who
can account for taking responsibility at various stages of production. Hudson’s
Alpine Furniture lacks a clear definition in their operations and that is why
they are facing troublesome time as the production and sales orders came from
different market segments (Whitford 1998).
The operations in Hudson Alpine Furniture
organization needs to be redefined so that the different involved departments
have the required clarity while operating in their various departments.
Initially, they need to focus on analysis and
designing of the process that they follow. They need to identify clearly how
much does it take for a normal commercial order and how much turnaround time to
give final shape for a normal private order. There can also be quality
management team which would be dedicated towards checking the quality of the
manufactured furniture. The complaints of the end customer would also be
noticed by him so that the same is not repeated in the future. The supply chain
management holds which is highlighted in the figure below is main importance
for Hudson Alpine Furniture House firm and they really have to identify and
prioritize the orders so that they are able to cater to the respective needs of
the various different customers which are identified as the commercial users
and the private users. Lastly, there is a need to manage the project overall
which can be handled by the senior management as opposed to handling the daily
peripheral activities which is happening currently in the organization.
Operating in this manner would give them a snapshot view of the operations and
hence they would be in a better position to handle the respective affairs of
the organization.
ozhelpassignment@gmail.com
Figure
1
Source: (McQuire 1999)
The diagram below also provides some useful insights
for the Hudson Alpine Furniture House. The first is to clearly identify the
market place in which they are operating. As given in the case study, the main
customers are the private and the commercial users of timber furniture. It is
safe to assume that the growing numbers of orders in the commercial customers
is a direct result of the excellent services provided by Hudson Alpine
Furniture to their respective private users. The next parts of the diagram
below shows the corporate strategy which is interlinked by the finance
strategy, operations strategy and the marketing strategy. The pre planning
stage includes factors such as development of the product and the location of
the plant. It also clearly charts out right in front of the concerned
department and the senior management what peripheral things are required to be
given and undertaken for various smaller tasks that would ultimately be used
for the final production process. Also, the diagram above clearly gives the
requirements which need to be considered upon the planning stage. Thus, it
becomes an important utility as far as the management of the affairs concerning
pre planning, planning and control are concerned. The same is lacking in
Hudson’s Alpine Furniture firm where the owners have virtually assumed the
position of handling all the departments of the organizations. The same notion
needs to evolve to better suit the needs of the changing and increasing demands
and resulting revenue orders.
Figure
2
Source: (McQuire 1999).
To get the full project, please buy the Assignment
by using this Link
ozhelpassignment@gmail.com
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