Professional Documents
Culture Documents
Gbs 550 Final
Gbs 550 Final
Gbs 550 Final
The Xin Xan Director is wondering over the best site for the factory and its ability to
meet an anticipated monthly demand of 500 tables and 500 chairs. Below we have
discussed how the monthly demand will be met and later we identified the best site for
the factory that will allow Xin Xao to efficiently and effectively coordinate the flow of
raw materials.
Job analysis allows every job that requires minimum movements and less cost and least
time is the best way of doing the job. For Xin Xao to maximize production and meet the
demand, the movement of people and material during production would take minimum
time which will helps in firms the fair work for a period. Furthermore, Taylor suggested
that eliminating wasteful movements and performing only necessary movements for
efficiency operations. (Robbins, S. P. and Judge, T., 2009)
The other way Xin Xao can use to increase production to introduce the financial
incentives to employees. Financial incentives can motivate the workers to put in their
maximum efforts and According to this scheme a worker who completes the normal
work gets wages at higher rate and who does not complete the gets at a lower rate.
Taylor has suggested that wages should be based on individual performance and not on
the position which he occupies.
In addition, scientific selection and training suggested that workers should be selected
on scientifically, that is, a worker should be physically and technically most suitable and
after selection should be given on the training of workers which makes them more
efficient and effective. The introduction of scientific selection in Xin Xao table and
chair production will allow employees to put in their best and thus increasing the
1
production and thus meet the anticipated monthly demand of 500 tables and 500 chairs.
(Robbins, S. P. and Judge, T., 2009).
Moreover, Xin Xao can increase the production of tables and chairs by introducing
functional foremanship based on specialization of functions. This system allows
foreman be involved to direct and control the activities of the workers.
Lastly, the other concern of Xin Xao director is the best site for the factory that will
allow formulating proper work procedures, establishing the boundaries of jobs, and
coordinating the flow of raw materials and the best site of the factory is the Lusaka
Town Centre.
Question (B)
2
Xin Xao Organogram
Question (C)
3
Corporate culture is a pattern of beliefs, symbols, rituals, myths, and practices that have
evolved over time in an organizations (Pheysey, 1993). According to Edgar H. Schein
(1985), culture is a shared philosophies, ideologies, values, beliefs, assumptions, and
norms. Culture varies from organization to organization depending on the values or
practices an organization deems important, as culture is identified to be a source of
solution to internal and external problems that has consistently worked for a group, and
it is also a guideline taught to new member as the correct path to perceive, think about,
and feel in relation to organisational problems. Needle, 2004 eluded that culture also
includes the organization's vision, values, norms, systems, language, assumptions,
beliefs, and habits. Culture is simply "the way things are done around here" (Deal and
Kennedy, 2000). Company values are a guide on how the company should run and
normally integrated in the company's mission statement. Every company should try and
establish company values that will make every employee to belong and feel needed and
not neglected. Xin Xao should adopt the following values to help their company
succeed and successfully operate in their community;
Xin Xao is estimated to operate for only 9 hours per day over the week days.
This will enable the employees to fellowship in their various churches as Zambia
is a Christian nation with majority of its citizens fellowshipping on Saturday and
Sunday. This will also allow the employees to rest on weekends and allow them
to focus on other parts of their lives which will be healthy for their minds
and physical strength, hence making them productive for work throughout the
week.
The company should put in place targets that will ensure that the required
number of tables and chairs to be manufactured per week are clearly
communicated in writing to the managers, than supervisor and eventually to the
lower level employees. This will motivate the employees and keep them
focused, which intern will allow for demand satisfaction.
Xin Xao should establish a performance reward structure for targets met by
employees e.g. Employee of the month, bounces etc. This will enable employees
to work extra hard and in turn more tables and chairs will be produced.
A step by step process should be written and displayed on how the chairs and
tables are to be made to ensure quality of product produced, which will lead to
return customers and reduced material waste due to unnecessary mistakes during
4
production.
Xin Xao should strive and put in place measures that will minimize activities or
materials that will negatively impact the environment under which it will be
operating. The company should support safe methods of production that reduce
environmental degradation.
The company should adopt the value of respect for all human beings inside and
outside the company and the community in which it operates. This will help
build unity within the company and develop a great image of the company in the
eyes of the customers and the community as a whole.
The company needs integrity in the way it runs its operations by showing
honesty, openness, ethics and fairness. This will help the customers both
existing and new to trust Xin Xao to adhere to their word as they save
customers. This will require employing people that have integrity.
The company should embrace diversity as it takes people with different ideas,
strengths, interests, and cultural backgrounds to make a company succeed.
The value of team work in production or manufacturing is very important
because one step in the process leads to the other and all employees need to
work together in Xin Xao to achieve one common goal.
To be competitive and stand out from the competition in an industry, XinXa will
need one important value in its operations and that is quality in every area of the
company. Since the company will be producing tables and chairs, quality in
everything they do will be of utmost importance.
Excellent customer service will be important. They will be selling tables and
chairs probably even supply to big institutions, they will need to make their
customers feel important, respected and valued. This will allow Xin Xao to have
return customers and recommendations.
Corporate culture has a great impact on the overall performance of an organization.
inorder for an organization to succeed Xin Xao needs to adopt and develop a culture
that will build commitment, team work, efficiency and effectiveness.
Question (D)
5
In order to arrive at the decision on how best to source or access capital funds to
undertake the manufacturing project, Xin Xao may need to consider the following
financing options;
Listing the company: The firm can consider raising capital funds via the stock
exchange. Assuming Xin Xao is not a listed entity, the company may decide to
commence trading as a public limited company and issue an initial public offer where it
can for the first time float its shares through a stock exchange to the general public, as a
way of raising capital funds to complete the buildings and buy the machinery, as well as
to undertake other investment projects in the future. The company should however take
into consideration that taking this approach would subject Xin Xao to certain
supervisory processes by regulators such as the Securities and Exchange Commission
(S.E.C), who may from time and again constantly monitor the operations of the entity to
ensure that Xin Xao complies with all S.E.C regulations pertaining to listed entities.
The entity may also take into account the shareholder obligations such as the preference
shareholder dividend payments, which this approach may come with.
Debt arrangements: Borrowing is another feasible route that the entity can consider
taking in order to raise funds for its manufacturing project. Firstly, the company can
consider approaching the lending institutions, notably the commercial banks, who may
be interested in offering Xin Xao credit or a long term loan. Taking this avenue will
mean that the company will have to carefully identify an able lender with the best credit
terms, be prepared to comply with the strict credit covenants that accompany the credit
arrangements, and most importantly be capable of making the repayments in accordance
with agreements with the respective lending institutions.
Secondly, Xin Xao may issue a bond where investors may lend funds to the company by
subscribing to the issued bond. The debt arrangement may however come with costs as
the investors will need an attractive rate of return on their invested funds.
Retained profits: Lastly but not the least option, Xin Xao may consider sourcing capital
funds internally. The entity will need to determine if it has sufficient retained earnings
from prior years to cover the shortfall of $2.4 million assuming the company has set
aside a $ 600,000 from the immediate past financial year, for the project. The firm
however needs to take into account that the shareholders of the entity, if any, may
demand that dividends be paid in the current year, and the company would therefore
need to strike a balance between the needs of the shareholders and the company’s need
to undertake the manufacturing project.
6
Having considered the above financing options, it is important for Xin Xao to carefully
determine an appropriate financing mix, which may be to consider using more retained
profits from the retained reserves and then engage a willing lender to partly finance the
manufacturing project as these two sources will provide the capital funds in a much
quicker manner without having to neutralise the concentration of ownership or disrupt
the culture of the company due to the likely presence of institutional shareholders in the
ownership structure, who may demand significant changes in the company’s operations.
Question (E)
7
Costing
To determine the total cost of the fabrication of proposed for the table and chair Bill of
Material and Labor cost is need. Bill of material for producing a single table and chair is
given in Table below
Question (F)
Profit per unit = Selling price per unit – Cost per unit
Selling price per unit= K1, 500
Cost per unit= K1, 200
Therefore Xin Xao will be profitable, making a profit of K150, 000 per month.
Question (G)
8
A set of policies are principle, rules, and guidelines formulated or adopted by an
organisation to reach its long term goals. Companies especially manufacturing
companies establish good policies inorder to meet standards and ensure they handle and
manufacture products safely and consistently. Policies set the minimum requirements
for the controls, facilities, equipment, packaging, product testing and processes.
Employees need consistent company policies to guide them on their roles and
responsibilities as well as protect the company from potential legal action. Some of the
policies that Xin Xao can adopt are stated below;
Provision for occupational safety are a necessity for everyone who works in Xin Xao. It
is imperative that the employees work within a healthy and safe workplace. Xin Xao is a
furniture manufacturing factory, anyone who steps onto the property faces some lever of
risk. The workers could injure themselves when operating in the workshop. Therefore
by putting workplace safety policies in the place, such for instance, as protective
clothing will help mitigate any damages caused by employee negligence.
Quality Policy
The company needs to make sure that the materials they use in manufacturing the tables
and chairs are of good quality, for example wrong wood or screws used on a particular
chair if wrong for that type of chair can hurt the customer that buys the chair if it breaks.
Appropriate labelling is vital to prevent product misrepresentation. Aside from the name
of the product, the company should make it their policy to include directions for safe
assembling of their chairs or tables, in cases where directions need to be given to the
client.
Disciplinary Policies
This policy is important to ensure employees are disciplined in the execution of their
duties. If the expectation for performance are outlined in the employees’ initial job
description, they can show a history of problems by detailing those issues in regular
evaluations and write-up. A standardized step by step process will help Xin Xao ensure
fair and appropriate treatment.
9
Xin Xao have expectation from their employees and a straightforward code of conduct
can make this clear. Communicating these expectations clearly is a prerequisite for
compliance .Even if an employee has the best of intentions and even if some things are
simple enough to be expected (like completing job duties) misunderstandings may still
occur. One way to ensure compliance, is have a written code of conduct that will
include important elements like attendance.
In conclusion policies are a guide to managers causing them to take actions in certain
ways. They express the organization’s official attitude to various forms of behaviour.
When the organization’s objectives have been established policies provide guidance on
the way they will be achieved.
10
Question (H)
INTRODUCTION
The table and chair are considered important physical elements of the learning
environment. Human health is notably impacted by the furniture and the arrangement of
the body and its limbs. An anthropometric survey showed that incorrect furniture
dimensions are responsible for discomfort, pain and disorders, namely in back, neck,
shoulder, and hands, wrists and many musculoskeletal diseases (Parcells C, Stommel M,
Hubbard RP, 1999). Thus, it is very important to design the classroom furniture more
specifically table and chair considering the anthropometric dimensions and ergonomic
guidelines. Below we discussed the design and the standard operating procedure for
producing the table and chair, putting into consideration the manufacturing materials
and technologies, production process and testing of product quality standard.
Bending
Almost all pieces used in the metal construction need bending (Figure 18). Therefore
roller bending has been chosen whereas the section of the pieces to be bent does not
undergo any deformation. Rollers spread the mechanical effort over a greater portion of
the matter (Kula, D. & Ternaux, É. 2014). The size of the rotating die determines the
radius of the bend. The distance travelled determines the angle of bend.
12
Figure 21. MIG welding (Ashby, M. & Johnson, K.,2014).
14
Figure 28. Spray adhesion (Ashby, M. & Johnson, K.,2014).
Wood Sawing
15
For cutting both glulam and sandwich panels pieces into shape, workbench is used
(Figure 30). It has toothed disc that cuts very precisely under different angles and
therefore needs only few amendments. 45
Milling cutter
For clean look all panels are connected with dowels and milling cutter is used for
carving the pocket for the dowel (Figure 31).
Driver drill
Making holes into metal frame and fastening wood components together is done by
using driver drill (Figure 32).
16
Figure 32. Makita driver drill.
Shuttering
The form of table top is created by using shutter made out of plywood. The plates are
cut into defined shape with format saw and fixed tightly, to outlast the whole weight of
sandwich panel.
Banding machine
The final phase of making sandwich panel is edge banding by using proper equipment.
Edge banding can be done manually when prototyping, but in mass production banding
machine is used (Figure 33).
17
Table and Chair Finishing technology
Varnishing
All wooden panels (both glulam and sandwich) are covered with matte transparent
lacquer to protect against defects and colour changes. Super lacquer is used that is
suitable both for interior and exterior use (Figure 34).
18
• All ends of the metal squares must be • All metal pieces shall be welded
covered with black plastic covers. together properly, strongly and in
• Plastic heels are to be installed under conformity with regulations.
the legs to elevate the iron parts from • CO2 welding shall be used
the ground and must be fixed with metal
screws.
• Two bag-holders should be fixed on
each side of table
Table board • The table board shall be made of precut • Chair back and seat shall be made out
and Chair plywood (SANDWICH), best quality. of wood board. Thickness: 3- 5mm.
back and seat • Thickness of table board shall be 17 • The chair back shall be fixed by the
mm, dimensions: 115 x 45 cm. It shall back pipes (diam 19mm) with metal
be covered with colored plastic screw; length 2 cm, required number:
FORMICA on both sides. 2.
• Top Formica thickness: 0.8mm. • It shall be fixed from the backside.
• Bottom Formica thickness: 0.5mm. • The seat shall be fixed by metal screw;
• The table board shall be belted using length: 2 cm required number: 4.
INJECTION POLYURETHANE • It shall be fixed from the bottom by U-
THERMOSET. shape metal joint.
• The belt thickness must be (5- 8mm).
• The table board shall be fixed on the
metal framework using galvanized
metal screws (3.5) cm.
• Number of screws: 12. It should be
fixed from the bottom.
Painting All metal shall be painted after being treated All metal shall be painted after being treated
with at least three stages and cleaned from oil, with at least three stages and cleaned from oil,
grease, dust, rust and other dirt using special grease, dust, rust and other dirt using special
thermal control painting for metal furniture to thermal control painting for metal furniture to
form a layer of base painting of (iron phosphate) form a layer of base painting of (iron
(0.4 – 0.8) gm/m². phosphate) (0.4 – 0.8) gm/m².
Automatic spray painting shall be applied to be Automatic spray painting shall be applied to be
followed by a drying process in a thermal followed by a drying process in a thermal
furnace with suitable temperature and time for furnace with suitable temperature and time for
the process. the process.
Thickness of painting (60 – 80) micron. Thickness of painting (60 – 80) micron.
Painting of iron, assembly, delivery and storage Painting of iron, assembly, delivery and storage
must be carried out away from climatic must be carried out away from climatic
influence i.e. sun, dust. influence i.e. sun, dust.
Wood waste generated from the routing and profiling will be gathered up and sent in
quantity to the factory's "hog" which chops the waste into fine chips. A variety of
companies, including remanufactured furniture factories, paper product producers and
19
manufacturers who make particle board, chip board, and so forth may arrange to take
away these small, processed chips.
In conclusion, the sole purpose in this section was design the standard operating
procedure for producing the table and chair for Xin Xao that will be produced 70
minutes and 40 minutes respectively. Above we have discussed the manufacturing
materials and technologies, production process that will Xin Xao to meet an anticipated
monthly demand of 500 tables and 500 chairs.
Question (I)
20
Diversification can be described as the process of managing two or more businesses
(related or unrelated) with a view to mitigating the various risks associated with a given
business.
Based on the information in the scenario, CLYK’s principal business activity is the
provision of strategy and project management consultancy services. The firm has
however decided to venture into the manufacturing of furniture, a totally different line
of business.
The firm may have decided to expand in this direction for various reasons, which
include taking advantage of certain opportunities that may have developed within the
Zambian wood processing industry. The other reason could be that CLYK has the
competences and capabilities that are needed to manage and operate a wood processing
business, considering the fact that the firm is in consultancy and may have had therefore
rendered consultancy services to a number of business clients in this line of business.
The intention to expand CLYK’s business in this direction therefore clearly shows an
example of business diversification.
References
Ashby, M. & Johnson, K. (2014) “Materials and design: the art and science of material
selection in product design” Elsevier Butterworth-Heinemann, Amsterdam
Deal, T. E. Kennedy, A.A. (2000). Corporate Cultures: The rites and rituals of corporate
life, London: Da Capo Press.
Mitcham 2005, p. 1153 Mitcham, Carl and Adam, Briggle Management in Mitcham
(2005) p. 1153
Needle, D. (2004) Business in context: an introduction to business and its environment.
4th edition. London: Thomson Learning.
Robbins, S. P. and Judge, T. (2009) Management. 13th ed., Prentice Hall International
Inc
Schein, Edgar H. (1985): Organizational Culture and Leadership. San Francisco:
Jossey-Bass Publishers.
22