1. The primary mode of production processing used at Stickley Furniture is batch processing where work is divided into different operations. Batch production is when items are manufactured in batches instead of being manufactured singly or through a continuous production (“What is Batch Production?,” 2012). A specific process for each item occurs at the same time on a batch of items and that particular batch does not go to the next production stage or to the inspection stage until the whole batch is finished. At Stickley Furniture, in particular, parts of the furniture are produced in batches and kept in the inventory where they remain until they are ready for the next step. Moreover, the batch processes performed at Stickley Furniture start from the cutting to the pre-planned pieces.
On the other hand, another type of processing that’s used to a lesser extent at Stickley Furniture is repetitive processing. This is a type of mass production that relies on the production of high numbers of identical units or item pieces in a continuous flow (“What is Repetitive Manufacturing?,” 2012). At Stickley Furniture, this is evidenced by the maintenance of the white inventory in order to ensure the workers’ productivity when demand is reduced during off-peak seasons and to ensure that the company can meet the excess in demand during the peak seasons. Sufficient time for planning is required for repetitive processing and so a schedule of up to ten weeks is maintained.
2. The company uses bar codes to identify the operation and the job. Each job has a set of bar codes such that whenever an operation is completed, the operator would remove the bar code sticker and deliver it to the scheduling office. The bar code sticker is then scanned into the computer, which enables production control to keep track of a job’s progress and determine where it is located in the shop.
3. The first thing that the company should determine is whether the orders have the same or different specifications. Next, they should determine the number of parts that is available from the white inventory, which can be used for this order. From this, they can determine the number of pieces that still need to be produced in order to complete the assembly of the ordered furniture. With this information, the production of the additional pieces can be initiated through batch processing.
4. The company’s level production policy enables it to retain its employees. Unlike other companies that hire during the peak season and lay off during the off peak season, being able to keep their employees enable Stickley Furniture to save on the costs and resources that would otherwise be spent on constantly hiring and laying off people. This would also ensure that they are able to retain their knowledge and expertise. Moreover, they are sure to have employees who are adept at the company’s processes and would be able to save on the costs and resources that would otherwise be used on constantly having to orient new hires. Still, this allows the company to utilize capacity for the continuous production of items that would build up the inventory. However, the disadvantage of this is that the physical inventory incurs a cost handling and it’s still possible that some stock items would not be used, which would result in wastage.
5. One of these changes is for the company to adapt the new methodologies in manufacturing. One such methodology is Just-In-Time, which would enable them to have zero inventory, in turn enabling them to save on the costs of handling for the excessive inventory. With this inventory strategy, they would be able order and receive materials only as they are needed in the production process (Hunt). For this, they may consider implementing an MRP (Materials Requirements Planning) system, which can help them automate their inventory management processes. This would also minimize the errors that are made with manual processes. With the Just-In-Time strategy, they would be able to use the funds that would otherwise be held up in inventory costs on more profitable endeavors. Similarly, they would be able to use the physical space that is used for the storage of inventory for other things such as for production and the other needs of the company.
Also, they may consider adopting TQM (Total Quality Management), which can help them continuously improve their business processes. This can help them make their processes more efficient through constant changes. Still, they may consider re-engineering their processes should the existing processes prove to be ineffective at some time in the future.
Works Cited
Hunt, J. “The ‘Just-In-Time Method.’” chron.com. Hearst Communications, Inc., 2012. Web. 3 Aug. 2012
“What is Batch Production?” wisegeek.com. Conjecture Corporation, 2012. Web. 3 Aug. 2012
< http://www.wisegeek.com/what-is-batch-production.htm>.
“What is Repetitive Manufacturing?” wisegeek.com. Conjecture Corporation, 2012. Web. 3 Aug. 2012 < http://www.wisegeek.com/what-is-repetitive-manufacturing.htm>.
