MASTER OF BUSINESS ADMINISTRATION

2022-24

SUBMITTED TO:
Dr. Saurabh Tiwari

SUBMITTED BY:
SUBHESH NARAYAN PADHI
 1) What types of decisions must Chad Thomas make daily for his
company’s operations torun effectively? Over the long run?

Ans- Chad Thomas has a variety of everyday decisions to make in order

to efficiently manage the company's operations, such as capability
planning, process improvement, managing production and projects,
managing and scheduling resources, and quality control. Expanding a
firm and boosting sales in order to make money is exciting. Chad's
Creative Concept, however, is unable to satisfy the growing client
demand in this instance. Therefore, determining the company's
capability and the production bottleneck are crucial and must be taken
into consideration initially. Create innovative procedures to improve
the company's capacity and production level, minimise lead times, and
reduce the cost of handling and storing inventory. The third is daily,
weekly, and monthly project production plans. The following requires
Chad to make judgments regarding the management and scheduling of
the company's limited supplies of materials, equipment, other facilities,
and human resources. Effective resource allocation will improve the
production process. Finally, performance and quality control must be
monitored in order to best serve and satisfy customers and prevent
defective items from the mass production process. To address the
existing issues, Chad may also consider adding to his staff and renting a
less expensive warehouse.
 2) How did sales and marketing affect operations when they began
to sell standard pieces to retail outlets?

Ans- • Compared to items made to order, standard furniture competes

on a different set of competitive priorities. Flexibility of the product is
far less significant than prompt delivery and affordable prices. There
are various ways to describe quality.

• The current facilities are designed to be flexible, with a focus on the

job-shop and all-purpose machinery. A dispute and scheduling issues
have arisen as a result of the introduction of a standard line that should
be manufactured on a flow line with certain dedicated, more
specialised equipment.

3) How has the move to producing standard furniture affected the

company’s financial structure?

Ans- Several issues that the teams must resolve include:

• As a result of the frequent switchovers required to meet the two

distinct product lines and associated schedule conflicts, inventory
investment and operating expenses are increasing.

• Because the profit margins for the standard line are lower,
manufacturing is under pressure to boost output and cut costs. The
allocation of overhead expenses to each product line may also be
problematic.

• Lastly, the profit margin for the basic furniture line may be impacted
by the probable requirement to rent warehouse space to hold either
WIP (Work in Process) or finished-goods inventory.
 4) What might Chad Thomas have done differently to avoid some
of the problems he now faces?

Ans- Chad must deal with problems involving functional areas. Please
include the decisions that touch on multiple functional areas. Several
examples are as follows:

Operations Perform

• Monitoring facility utilisation and capacity

• Creating policies for inventory—dollar, item, and unit levels

• Establishing priorities and scheduling rules

• Maintaining line-wide quality standards

Sales and marketing

• Predicting orders for standard parts with accuracy

• Identifying market segmentation and client requirements

• Choosing which delivery windows can be guaranteed to customers

Finance

• Selecting the amount and kind of investment

• Examining how decisions about capacity investments affect returns

on investment
Distribution/Logistics

• Managing pipeline and distribution inventory

• Examining the benefits and costs of various forms of transportation

• Meeting lead times for deliveries