Chad 's Creative Concept Case

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UNIVERSITY OF NEW BRUNSWICK, SAINT JOHN CASE 1: CHAD’S CREATIVE CONCEPT CASE 2: CUSTOM MOLDS INC. MBA 7626: Production & Operations Management Instructor: Dr. Ali Sher Prepared by: Team 3, Section 1 Eshhad Islam 3515729 Yuanzheng Xu (Fiona) 3483393 Veena Gadhave 3518464…show more content…
Segregation of Furniture Craft Workers In order to run the business operations smoothly, Chad’s needs to segregate the furniture craft workers into different groups or sections according to their expertise. For example, some of them could do the furniture polishing whereas others can do the assembling etc. The company is faced with longer lead times since the company currently manufacturers both standard and customized furniture on the same production line. By assigning workers into different specialty groups, Chad’s furniture can reduce the lead times thereby eliminating the non-favorable impact on the financials. Increasing Plant Capacity Chad’s Creative Concepts can implement some long term initiatives such as increasing the plant capacity. Instead of a single production line, the company can have two different facilities to produce standard and customized furniture respectively. Dedicated production line can result in elimination of lead times. Just-In-Time Production& Outsourcing The company can also change the production to Just-In-Time production method. This can eliminate unnecessary costs as Just-In-Time method does not allow any inventory built-up. For rental expenditures, the company can start searching for inexpensive warehouses or signing economically viable long term deals. Chad’s Creative Concepts can also hire a qualified outsourcing company which can take over certain processes thus increasing production
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