Tyndall furniture Case study -throughput

8/9/2019 Tyndall furniture Case study -throughput

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Tyndall Furniture case

study


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Marketing Strategy

Strategy Rationale

Widening product range

through Diversifcation.

• To build image as ull

service manuacturer• To meet customer

expectations• To increase market share.• ro!th expected rom

bedroom and "pholsteredsegments

Securing uture marketoutlets #esp. urnituregalleries

• $mprove visibility amongthe general public.

• Total segment sales arelarge

• %nsure homogeneousmarketing

• &o!er customer 'ressure• &imited number o

galleries available in the

uture


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Marketing Strategy

Strategy Rationale

&imited sales to massmerchandiser

• To spread the riskinvolved

'ush sales and enrollsmall chains and large

independents

• To create balancedportolio

• *educe dependencyon massmerchandiser

+ot to Focus on , Momand 'op- ormat

• Mom and 'op ormatstores are decliningand little utureprospects


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Strategy

Strategy Rationale

utomate processes • To reduce direct labor cost• $ncrease output levels and

productivity• Maintain consistent /uality• reater control over scheduling• *educe dependence on

suppliers

&ink number oprocesses together!ithin a series

• W$' reduction• *eduction in (ycle time• $mproved production capacity

(ontinuousimprovement in

process.

• *educe process time andincrease e0ective capacity

$n1house production ocomponents

• To have better control on theproduct /uality.

Focus on Scheduling toavoid delays

• To reduce !aiting time• To minimi)e 2vertime


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$mplications o the marketing decisions onproduction and vice versa3

Tyndall-s urniture range can be positioned bet!een the 4atch'rocess and Mass 'rocess. These processes are characteri)ed by5•

ssembly lines 2r 6umbled but a dominant 7o!.•&o! to medium product variety


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MarketingStrategy

Implications onProduction

Remarks

$ntroduction one! products

• Modiy the production lineto add provisions or ne!products

• (alls or reducedutomation

•

Shit more to!ards 4atchprocesses

• $ncrease the productvariety resulting inincreased inventory.

Throughput per hour odiversifed products are thelo!est 5• 4 (ategory chairs 8!hich are the

diversifed products9 accountingor :; o the total units sold are

consuming ?; o the run time.

'ush intosegments !herethey areperorming !ell .

• 'ressure on (hairsleading to increased leadtimes.

• Since order losing criteriais Delivery the increasedlead time may a0ectmarket share

$nvest in ne! technologiesthat !ill increaseproductivity and /uality tomeet uture expansion plan

&imited sales to &imiting mass $n terms o assembly line



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Production

decisions

Implications on

Marketing

Remarks

'roposal to investin a ne!automated roughmill

• *eduction in productrange due to automation

• %nhance its competitiveposition in a price1sensitive market

• $ncrease deliveryreliability to little extentas minimi)e supplierdependence.

• utomation leads toless variety and highvolume as per volumevariety matrix.

• The rough mill !ould

increase the net boardeet capacity per dayreduce manuacturinglead times and providecost savings in materialand labor.

*eduction inprocess time$ncreasethroughputensure /ualityimprove

scheduling toavoid dela s.

• 'ositive impact on sales• et market or high

volume 8reduced on timedelivery9

s all these !ill reduceprice and delivery time dueto lo! Work in processinventory and lead time



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Data Analysis

?

E??????

C???????

CE??????

>???????

>E??????

CCCG

CGHC:C?G

CE?H???

:=EE>:G=C


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(ontribution Margin or 'roducts

ItemNumb

er

Wholesale ListPrice

AverageSellingPrice

Unitarible

cost

!e"ectsper

#$$$units

Shipeed

AverageInventory

%Units&

AverageSales'rder

(acklog

%Units&

)ontribution

Margin*U

nit

Production

Units *

+ ,r

Production

Units*

,r

)ontribution

Margin*,r

4>?G JHCG J=: :H = JC?? JG= J=? C := >< =E H J>?G JCHH J: CE HEG >H JE: >C ??>.C<

CCHE JCCG JC?> J=G ?


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ariety

o l u

m

e

CC?=CC>=AA 5 0 C?

EC?>

H

(>>?CA 56

( 51

4>?G

4>C>=

(>C

) 5

7

4>>HC

4>H:H

C?:

H

(CEH

H(CHE

(hairs

Tables

(hest Tables(hairs

Dressers

(hest

Table(hestIeadboar

dFootboar

d

Marketing $nitiative isto target this segment

%@cient'roduction

Volume – Variety Matrix

Sales 4acklog

(ase EE

(hair CHG

S&%S

(ase CEG?

(hairH=EG

E

Table


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(%2 *ecommendations

Manu"acturing 8 $ncrease the capacity o chair plant or !ork

to!ards increasing the productivity o chair plant.

Top line is a0ected by restricted production

capacity o chair !hich is not addressed by anyproduction initiatives.8 &ead time HH days Iighest(ontribution marginA I* highest sales backlog9

*educe lead time or all products. This is 2rderloosing criteria 8KK9 or most o the products !ith

all most all customers. Focus on utili)ing existing capacity or high (M

products .


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Marketing 8Marketing should ocus on volume gro!th

rather than variety gro!th as automation inplants does not suit the marketing initiatives

involving ne!er variety.+eed to ocus on customer relationship

building as it is a order loosing criteria. 8KK9

%xplore better selling channels 8alleries9 or

high (M products $ntroduce ne! products careully as higher

batches !ill results in higher lead time

(%2 *ecommendations


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9,AN: ;'U

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Tyndall furniture Case study -throughput