Operations Management Report: Chad's Creative Concepts Analysis

This report provides an executive summary and detailed analysis of the operations management challenges faced by Chad's Creative Concepts, a wooden furniture manufacturer. The report identifies key operational decisions related to inventory, scheduling, quality management, and resource allocation. It highlights issues such as financial constraints, slow manufacturing processes, and the need to balance custom and standard furniture production. The analysis explores how Chad Thomas, the owner, can address these problems by relocating the warehouse, optimizing scheduling, motivating employees, and improving resource allocation. The report emphasizes the importance of effective decision-making in operations management to enhance efficiency, increase turnover, and maintain customer satisfaction. The report concludes with recommendations for Chad Thomas to improve profitability and growth by focusing on efficient processes and employee engagement.

OPERATIONS
MANAGEMENT

EXECUTIVE SUMMARY
Operation management refers to governance of various business activities or practices for
creating the highest level of efficiency among employees and within organisation. In this report,
Chad’s Creative Concepts are described who manufactures and designs wooden furniture. In
addition to this, there are various decisions in terms of inventory and scheduling are faced by
Chad Thomas within the organization is discussed below. The below report describes about
custom and standard furniture which has been manufactured by Chad in company. The below
report explains about the issue of finance and about slow process of manufacturing within
organization. This report also aims in solving this issues and conflicts that are faced in daily
managerial activities by Chad Thomas. Moreover, the below context shows about Chad's
capability of encouraging their individual's which helps in delivering services on adequate time
and before deadline.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Question-1........................................................................................................................................1
Kind of operating decisions that are faced by Chad Thomas’ in business today.......................1
Question-2........................................................................................................................................2
Thomas have done differently to avoid some of the problems..................................................2
Conclusion.......................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Operations management is the particular area which is concerned in controlling products
and also designing production process of wooden furniture in Chad’s Creative Concepts.
Moreover, it helps in redesigning various managerial activities in terms of manufacturing goods
and services effectively within industry. This is mainly obsessed with organizing, planning,
controlling, supervising and co-ordinating in production of products and services in Chad’s
Creative Concepts. However, this is a largest industrial manufacturing company who delivers
wooden furniture products and also deliver services within the short and limited time period in
market. The report aims in describing operating decisions that are faced by Chad Thomas in this
global world. Lastly, the actions of Chad Thomas are specified that helps in avoiding some of the
problems within organization.
QUESTION-1
Kind of operating decisions that are faced by Chad Thomas’ in business today
The Chad’s Creative Concepts is providing single and unique facility of manufacturing
wooden products and also customized and standard types of furniture is being manufactured in
company. Similarly, Chad Thomas is also facing the issue of finance and also has slow
manufacturing process within organization. Further, there are various decisions that are being
faced by Chad Thomas within the organization (Shalley and Gilson, 2017). These decisions has
to be made in terms of quality management which helps in manufacturing better and effective
products and services of wooden furniture. Secondly decisions are made in regards to scheduling
process which helps in proper arrangement of stock and inventory. Further, decision-making has
made to improve slow manufacturing process and has to be made rapid that satisfies customer's
need in market. Lastly, decision was made in context to human and finance resources and many
more factors are involved in this decision-making process of Chad's company. The finance and
human resources should also be planned and made available in order to complete the task before
the deadline. In addition to this, there is a problem of achieving turn over which is not
appropriate and has to be maintained within the company. Organisations finance of Chad is not
steady and suitable in terms of operating managerial functions and activities (Karlsson, 2016).
Moreover, Chad Thomas need to make decisions in terms of inventory and scheduling according
to the operation manager of business enterprise.
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The scheduling must be done effectively which does not delay in slow process of
manufacturing of products and services.The raw materials are kept in process for manufacturing
which unable to increase turnover of Chad's furniture. Moreover, the finance is not stable and
appropriate to operate various managerial functions of organization. The scheduling and
arrangement must be done effectively which does not make manufacturing process of products
and services slow and ineffective. (Shalley and Gilson, 2017). The standard and appropriate
warehouse of products is costly as mentioned in case which is not affordable by Chad due to
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Illustration 1: Custom and standard furniture
(Source: Custom and standard furniture, 2018)

their finance issues. Sales of custom designed furniture’s of company have raised to 60% in
volume and 75% of dollar sales. For maximising organisations' profits, materials and labour are
effectively converted into various products or services (Karlsson, 2016). However, they should
cut this inventory costs by making decisions effectively. Thomas must make supply chain and
stock list decisions in resolving the issues of finance in company. Further, decisions should be in
terms of maintenance regarding customs and standard wooden furniture’s. As the demand line is
increasing in both terms they need to maintain it with effective decisions without dropping any
one of it. If Chad loses any one in maintaining it then they will face the issue of losing
opportunity for company's growth and expansion. Scheduling of various tasks must be done
effectively that would not delay or makes the process of manufacturing of products and services
slow. Accordingly, the decision of operation manager should be considered in perfect
maintenance of goods and services. Chad Thomas can maintain both equally and systematically
without any loss by some good maintenance decisions in company (Venkat and et.al., 2015).
Further, the wooden business of Chad Thomas will run effectively with high turnover and profits
by following decisions of operations manager.
QUESTION-2
Specifying Thomas actions to avoid some of the problems
Chad Thomas is facing the issue of finance and also about slow manufacturing process
within organization. To solve this issues and conflicts, Chad Thomas has found various ways to
solve it. The first way is to relocate warehouse at appropriate place where it is cheap. As the
warehouse is expensive and its cost has to be reduced. Moreover, Chad Thomas need to cut
down warehouse cost and place it to a cheapest area in order to maintain the financial position of
company (Wisner, 2016). The raw materials should be reduced and stopped from being under
process which helps in rolling up finance of organization. In order to manage this, Chad must
have to implement new and appropriate scheduling process within the business (Zhou and et.al.,
2016). In business today, Chad Thomas is operating single manufacturing facility in Sandusky
with the aim of providing flexible goods and services to customers. The organization's standard
and reputation increased along with the increment in sales which resulted in high profitability
and productivity. Further, the team of gross sales began to sell few more favourite types of
wooden furniture pieces into retail furniture booklets and outlets. The organisation has focused
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completely on customized furniture pieces, to fulfil the need and requirement of customer in
market. In addition to this, the main priority is given to custom furniture which should be
avoided (Venkat and et.al., 2015). This is mainly prioritized due to its high sales and profit
margins in market. The custom sales are already strong and effective but sales of standard wood
is still increasing steadily in market. As per this situation, custom and standard manufacturing
must be given equal priority in business enterprise. Therefore, by raw materials that are standard
will not be fixed under work which is in process. According to this, the standard products will
not be stuck and delivered on appropriate time period as per schedule of manager (Venkataraman
and Pinto, 2017). However, another issue is about slow manufacturing process and delay in it.
Thus, this will affect profitability of company and will also reduce potential customers towards
their wooden furniture. Chad must motivate their workers in delivering services before deadline
as there will be no delay in manufacturing process. He can avoid disputes and issues by engaging
employees with organisation and having a better relationship with them. In order to avoid and
overcome this issue, Chad Thomas need to enlarge business capacity along with enabling more
effective facilities (Zhou and et.al., 2016). This organization must recruit and select efficient and
skilled labours who delivers goods and services without any delay in it. In addition to this, if they
are not able to recruit adequate employees as they have less finance then they must provide
overtime to their existing workers. Chad must motivate their workers in delivering services
before deadline as there will be no delay in manufacturing process. The effective scheduling and
task arrangement is a part of operations management which also helps in more production of
furniture by offering overtime to existing co-workers (Chiarini, 2015). Chad Thomas can resolve
disputes and issues by adapting and considering this points as mentioned in this paragraph.
CONCLUSION
From this report it can be concluded that organization faces various operational and
managerial issues regarding finance, turnover and slow manufacturing process in today's
businesses. It is analysed that decisions are taken by Chad Thomas was in terms of scheduling
process, quality management, slow manufacturing, finance and human resources and so on. It is
identified that the finance of Chad Thomas is not stable to manage daily activities. It can be said
from above context that the arrangement and scheduling is performed effectively which does not
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make manufacturing process slow. It is also recognized that Chad avoided disputes and issues by
keeping their worker's engaged in manufacturing process within organisation. This will result in
boosting their motivational power and maintains a better relationship within firm. Lastly, it can
be ended that Chad Thomas can maintain custom and standard furniture equally without any loss
in company.
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REFERENCES
Books and Journals:
Chiarini, A., 2015. Sustainable Operations Management. Springer International Publishing:
Imprint: Springer,.
Karlsson, C. ed., 2016. Research methods for operations management. Routledge.
Shalley, C.E. and Gilson, L.L., 2017. Creativity and the management of technology: Balancing
creativity and standardization. Production and Operations Management, 26(4), pp.605-
616.
Venkat, A. and et.al., 2015. Strategic management of operations in the emergency
department. Production and Operations Management, 24(11), pp.1706-1723.
Venkataraman, R.R. and Pinto, J.K., 2017. Operations management: Managing global supply
chains. SAGE Publications.
Wisner, J.D., 2016. Operations management: A supply chain process approach. Sage
Publications.
Zhou, K.Z. And et.al., 2016. Supply chain management in emerging markets. Journal of
operations management.
Online
Custom and standard furniture. 2018. [Online] Available
Through:<https://www.pinterest.com/trucraft/pedesta-l-trestle-dining-tables/>
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