©2006 Pearson Prentice Hall — Introduction to Operations and Supply Chain Management — Bozarth & Handfield

BMGT20150 - Operations and Supply Chain Management

The Dankers Case – The Process Choice and Layout Case

Group: W2A

Introduction

• Designer and manufacturer of hardwood furniture.

• Traditional business in client specified pieces.

• Shifted focus to standard units.– Failed due to bad process layout and

management.

3

Last Week’s Issues

• Poor customer service and manufacturing.• Financial distress.• Due to change to move towards standardised

production rather than custom made design.• Solution:

– Separate previous successful custom design and new standardised cabinets.

3

Challenges:

• New 3,200 SqM (40M x 80M) production facility.

• Possible Routes: – “Raw Materials Storage” to

“Sawing”.– From “Clean, Polish & Pack”

to “Finished Goods Storage”.

• Sawing or Sanding operations cannot be located directly alongside the varnishing operation.

3

Considerations when choosing process:

• Degree of customisation.

• Volume of production.

• Flexibility of resources.

• Employee skill level.

3

Volume

Customization

Methods of Production

Production Line - Standardised

• Most common production method.

• Conveyor belt method.

• Standardised products.

• Low-skilled labour.

Job Shop - Customised

• Flexible equipment and personnel.

• Unique products, assemble to order.

• High-skilled labour.

3

Issues facing Management

• Quality control (products and management).• Scale of production.• Idleness and obsolescence.• HR requirement.• Design – operations and factory layout.

3

Design Materials Sanding

Door handlesHinges and

doorsShelf

Cutting wood

Assembling

Pre-cut back panel

Side, top and bottom panels

VarnishingMachining Packing

Customer

Production line

Job shop

Process3

Process

• Advantages of Process:–Efficiency.

–Economies of Scale.

Design Materials SandingCutting wood

Assembling VarnishingMachining Packing

3

Constraints:•Sawing and Sanding operations cannot be located alongside Varnishing operation.

Factory Layout

West Gate

East Gate

ASS

ME

L

B

Y

3

Conclusion

• By following the Process Map and Factory Layout:– High Quality Custom Made Furniture of

Past.– Growth of the standardised Market of the

future.

3