Chad's Creative Concepts Essay

797 Words 4 Pages
Q1. What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run?
Tactical decisions or short term decisions have short term impact and consequence to the organization:
1) Layout of the manufacturing process and equipment configurations- the importance of the relayout is to reduce the setup time
2) Resource allocation-daily raw materials allocation and replenishment
3) Management of resource- manpower allocation and staff allocated for each process.
4) Job scheduling – production scheduling on how much to produce
5) Shipment scheduling –planning and organizing the number of shipments to end customer
6) Inventories management
Strategic decisions or long term decisions have
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In the scenario, it is describing the promises to fulfill the orders and deliver on time to customers. In an example illustration of a retail outlets or shops, failure of timely delivery will cause a stock-out.
Operations Impact- Production and delivery complete for resources for delivery and it will impact on the shipment and delivery
2) Cost –
It is another factor as customer will be looking at delivering a service or product at the lowest possible cost and getting the maximum satisfaction. It could mean good cost product that will meet all the specifications and demands from customers
Operations Impact – Tendency to produce more to gain the economical of scale however it will incurred higher inventory and holding cost in return.
3) Quality –
Customer expect a top quality product delivering at a high consistent level. As customer trusts in the products, it is natural that the expectations on product must be of top quality and reliability.
Operations Impact- Lead time will be longer if demand is high in quality
4) Flexibility-
Flexibility gives more choices for customers.
Operations Impact- With less variety, machine setups and changeovers are reduced and created a better productivity. This gives more lead time for delivery to customers.

Q3. How has the move to producing standard furniture affected the company financial structure?
It affected the company in the following way:
1) Sale revenue has increased
Revenue ratio- Custom: Standard

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