Chad's Creative Concepts

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Synopsis This case gives description of a small company for wood furniture manufacturing that has acquired a reputation by focusing on producing custom-designed furniture with creative designs and quality. Chad’s creative concept began with the idea to produce and design custom-made furniture specified for customers wishes and the whole company was focused on that. This model of creativity and high-quality workmanship contributed for growing of the company’s reputation and increasing level of sales. As a consequence of that, Chad’s creative concepts started to produce and sell some pieces of standard furniture to retailer outlets which moved company’s production to a more standard line of furniture. This growth in sales volume and the overall growth in sales volume and becoming diverse into the production of standard furniture pieces made happen a number of problems for the company to arise concerning the internal manufacturing operations and its relationships to the other functional areas. At the moment, the company is producing both custom and standard furniture, however the sales of standard furniture are increased, which drive to more accurate scheduling and creating problems with the logistics of operation. The custom line have the priority of production because of profit margin and level of sales and the buyers demanding are not with strong delivery requirement as with the standard line. Both products are produced with the same equipment and craftspeople, there are needs to stock raw materials and work in process for final products which demands high cost of the warehouses. Question 1, What types of decisions must Chad Thomas make daily for his company’s operation to run effectively? Over the long run? In operation managements, there are basically ten critical decisions. Those are; Service and product design, Quality

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