Production Management Hawkesbury Cabinets Pty Ltd

Question: Discuss about the Production Management for Hawkesbury Cabinets Pty Ltd. Answer: Introduction Production and Operations Management is a part of management in any business that deals with the use of input raw materials, processing and production, marketing and distribution of goods and services that are fit for consumer use (Kumar et all, 2009). Therefore, it is concerned about how a business manages its operations in order for it to meet the customers needs and satisfaction. However, production systems or processes are the activities that are involved in receiving raw materials and processing them in the desired that will satisfy a consumers needs and wants as well as make the management satisfied (Vidal et all, 2002). These activities are usually organized and are aligned with the customers needs and the businesss objectives and goals (Mentzer et al, 2008). This essay is going to discuss the operational issues that are challenging Hawkesbury Cabinets limited (as stated in the case study). Operational issues are the problems that are involved in the production process, marketing, distribution of products, running of the business and managing the entire business activities (Kleindorfer et al, 2005). Therefore, the essay is going to identify these issues and give a solution to some of them. As stated in the case study, Hawkesbury Cabinets uses different production processes and in its business activities and operations. It is the businesss tradition to focus on custom-made cabinets for their customers. They only made the cabinets after receiving an order from their customers with the exact specifics and facts of what the customer wanted for their cabinet. This therefore means that the business used the made to order production process. This where the product is made only after the customer has given his requirements, characteristics and facts about what kind of product or service they want (Hockley, 2010). This method is good because the producer does not know what the customer desires and does not take chances of guesswork and so he/she relies fully on the customers information. Because of this process, the business began to make good profits, sales increased and it started to become popular in the region. This therefore led to the business being assigned a contract to produce high quality and standardized cabinets for small spec builders. However, the contract required Hawkesbury to make the cabinets in small batches which were designed for one to five kitchen cabinet specifications. This shows that Hawkesbury Cabinets used the batch production process in its operations. In this kind of production process, an activity passes through a functional department in form of batches or lots but with each activity having its own different routing (Vidal et al, 1997). In this process, the business may make a batch of a product and then set up the equipment again to be able to make another product of the same characteristics or even of different characteristics depending on what the product is and what the customer requires (Kouvelis et al, 2006). Advantages Plant and the machinery are flexible therefore better utilization. Satisfaction in jobs and better operations of the business activities. Promotes functional and specialization. Low investment in plant and machinery. Has low production lead time and cost. Disadvantages Material handling, production, planning and control becomes complex. High set up costs caused by the frequent changes in equipment and machine set ups. However, the cabinets that were made through this process started becoming important to Hawkesbury Cabinet. They were accounting for 40% of the businesss factory volume and 20% of the sales revenue for Hawkesbury Limited which meant a big improvement for the business in terms of its operations and production processing methods. According to the information given in the case study, Hawkesbury uses a single manufacturing facility where both the custom and standardized cabinets are made and sold. The custom cabinet making equipment is designed to produce a variety of cabinet designs which means that it is highly flexible. The business has also grouped the machines, equipment and tools according to their use in different sections of the facility. E.g. the saws and cutting tables are stored in one section, routers and shapers in a different section, painting and finishing done in a different section to name just but a few sections of the business partitions. This evidently shows that Hawkesbury uses also the mass production process in addition to the made to order and batch production processes. Research shows that in this production process, a business focuses on production of large quantities and varieties of goods or services at a low cost per unit but in the same building and using the same equipment and machines (Thomas et al, 1996). It involves standardization of both the product or service and the process sequence, dedicated special equipment and machines that have high production capacities and output rates, large volumes of products with short time cycle, easy production and planning process as well as handling of the materials automatically. Nevertheless, this process has its limitations and advantages (Kouvelis et all, 2006) Advantages The inventory process is low. Higher capacity utilization and rate of production. Low or reduced processing cycle time. Fewer number of skilled employees are required. Low production cost per unit. Limitations The line layout needs major and frequent changes according to the product design changes. Breakdown of one processing machine may stop the entire production process. High investments are needed for the production facilities. The use of this process has brought a positive impact to the Hawkesbury Limited business. The cabinets that are displayed by the business after completion are therefore able to reflect the craftsmanship of the individual makers as well as the good quality of the raw materials used. However, there was a negative impact in the fact that the standardized and the custom-made cabinets competed for attention from the craftsmen during production which was not a good sign for good business management and operations. From the case study, Hawkesbury Cabinets Limited increased its sales of the builders cabinets which was brought about by the increased line of builders kitchens which led to the management doing more work scheduling to keep up the businesss production rate as well as maintaining it. However, the custom-made cabinets were given priority because they always gave higher sales and profit margins. This therefore meant that the standardized cabinets were to be set aside without total completion instead were left as work in progress for a while (Barrile et all 2002). It is evident that Hawkesbury Cabinets was therefore using job shop production process where most of the products are usually not complete but left as Work in Progress (WIP) which are contained in different stages of production processes. This process involves high variety of product but with low volumes, highly skilled employees are required, large material, inputs and tools inventories, good planning is required and use of general purpose machines and equipment (Handley et all, 2009). Advantages A large variety and amounts of products are produced by using the general purpose equipment. Employees skills are well utilized hence making them more competent and specialized in their jobs. Limitations Large working space required. Production planning is complicated and complex. This process brought about increased growth of the business in general, custom kitchen cabinets sale remained strong and that of the builders increased rapidly. Nevertheless, this process caused more negative impacts, like: decrease in profit margins, high costs related to builders cabinets, increased capital being tied up in raw materials inventory, WIP and finished product, lack of enough space for work and for expansion among other problems that were caused. This led to the businesss decision to hire or rent the nearby warehouse space so that it can accommodate the business operations and products. Conclusion To conclude, it is evident that Hawkesbury Cabinets uses some of the best, popular and famous production processes that are effective for such a business. However, in relation to job shop product production process, it has to do some changes because this is the process that has led to the most number of negative impacts in Hawkesburys operations (Gupta et all, 2009). Otherwise, the business can do well or even better without the job shop production process. References Barrile, S. and Cameron, T. (2002).Business management. South Yarra, Vic.: VCTA Pub. Gupta, S., Koulamas, C. and Kyparisis, G. (2009). E-Business: A Review of Research Published in Production and Operations Management (1992-2008).Production and Operations Management, 18(6), pp.604-620. Handley, S. and Benton, W. (2009). Unlocking the business outsourcing process model.Journal of Operations Management, 27(5), pp.344-361. Hockley, L. (2010).Global operations management. New York: Nova Science Publishers. Kumar, S. and Suresh, N. (2009).Operations management. New Delhi: New Age International. Kleindorfer, P.R., Singhal, K. and Wassenhove, L.N., 2005. Sustainable operations management.Production and operations management,14(4), pp.482-492. Kouvelis, P., Chambers, C. and Wang, H., 2006. Supply chain management research and production and operations management: Review, trends, and opportunities.Production and Operations Management,15(3), pp.449-469. Mentzer, J.T., Stank, T.P. and Esper, T.L., 2008. Supply chain management and its relationship to logistics, marketing, production, and operations management.Journal of Business Logistics,29(1), pp.31-46. Slack, N. and Lewis, M. eds., 2005.Operations management(Vol. 10). Psychology Press. Thomas, Douglas J., and Paul M. Griffin. "Coordinated supply chain management."European journal of operational research94, no. 1 (1996): 1-15. Vidal, C., Tsikriktsis, N. and Frohlich, M., 2002. Case research in operations management.International journal of operations production management, 22 (2), pp.195-219. Westbrook, R., 1995. Action research: a new paradigm for research in production and operations management.International Journal of Operations Production Management,15(12), pp.6-20.