Chocktree & Sons

Assignment 4
Julian Cowper
Student number: 714102
 Background
• Chocktree & Sons (C&S) produces high quality,
high class pottery
• C&S are well known for making a set for
Queen Victoria
• C&S has been maintained through the family
name (Chocktree) since established
• C&S managed to survire through the Great
Depression as well as 2 world wars
– Big loss in the market as well as designers
• Recently adopted an automated finishing line
 Problems C&S want resolved
1. Recommendations for improvements in
profitability gained from existing operations
2. Indicate which other markets they could
serve with existing resources
3. Other opportunities for future growth (will
require additional capital in long term)
 Problems faced within C&S
• Personnel complement has been fairly static
– Hard to acquire new unskilled workers (better wages in other
industries)
• Reason for automation of finishing processes
– Management of C&S expected to be passed down family
lineage
• Samuel Chocktree (Promotions Manager) is next in line as Technical
Director but is not “educated enough”
• Harold Williams (Marketing Director) is expected to fill gap between
Charles Chocktree (Techincal Director) and Samuel Chocktree
• Performance in the market has stagnated
– C&S relies largely on their reputation for business
– Sir Charles wants to improve production whereas his son,
Samuel, wants to look at marketing and possibly venture into
mass-produced items
 Problematique
• C&S does not have a clear strategic plan in
place to improve their performance
• There is very little turnover or upskilling of
staff
 Naïve picture
Ceramics
Family run High end
company quality

Upper
Low level/ no class/ high
automation end
market

Passing on
of Chocktree International
knowledge market
/ skill & Sons

Crafting
expertise
Brand
(forming
identity
and
painting)

Slow
Hand
productio
crafted
n rate High
quality
materials
 No
Rich Picture Training young,
unskilled
Family
oriented/
artisans run Materials
Current
facility
Other
industries
Harold
Formers Williams
Sir Charles
Chocktree
Decorators
Price
Production
rate
Chocktree
& Sons
Design
sets
High-end ceramics Automation
Scraps/
rejects

Restaurants Brand
reputation
Samuel
Chocktree

New
Buyer’s
International brand
market
New
facility

Mass-produced ceramics
Hierarchy

Market for high end ceramics

Chocktree and Son brand

Sir Charles Chocktree

Experienced artesian workers

High end materials

High end
ceramics
 SWOT-e Analysis – Chocktree & Sons
Weaknesses
Strengths
• Lack of training of new, unskilled, artisans
• Strong, reputable, international brand name • Family run business (might not have the interest of the
o Produced for the Queen – “By Appointment to Royalty” business in mind)
• Highly skilled artisans • Slow production rate (order book = 6 months)
o Hand crafted • Little automation adopted into production
• Family run business (creates a strong, family-like culture) • Few design sets available (5 different sets and customs)
• Unique, custom sets can be created • High cost of products/production
• Wanting to improve on productivity
• High quality material used

Chocktree & Sons

Opportunities Threats
• Move into cheaper, mass-produced ceramics • Changing market preferences
• Change in company structure • Better wages at other nearby industries
• Increase automation • Lack of staff turnover
• Training school for new artisans • Dying trade – lack of young experienced artisans
• New different sets
• Family run business (next in line may not be fit to operate
• Use new, more affordable but still top quality, materials
C&S)
• Build separate facility for mass-production
• Price/scarcity of high-end materials
• Create new brand for mass-produced range

Environment
• Ceramics • Family
• Production/manufacturing
• High end
• Internationally
• Automation
 Ishikawa Diagram
Production Market
- Slow rate of production - Diminishing market for high end
- Low level of automation ceramics
- High expenses for raw materials - High cost for items
- Number of scraps / high level of - High distribution costs (international
perfection market)
- Number of artisans - Waiting period between ordering
- Irregularity of automated line and receiving
Drop in turnover
performance
Business decisions
- Family run business
- Not adopting new market trends
- Turnover of staff rate
- Amount of upskilling
- Communication (horizontally and
vertically)
 Root definition (CAPETOWN) –
As is
C – wealthy ceramic buyers (individuals and organisations), fine
dining restaurants
A – Chocktree & Sons, Formers, Decorators, Marketing
Department, Technical Department
P–
• 6 items/hr produced
• 11,4% rejection rate
• 30 000 items/year
• 78% export
• 67% large orders, 33% small orders
• £0,5m/annum turnover
• £0,026m/annum production losses due to scrap/rejects
• £0,053m/annum raw material cost
E – Ceramics, production/manufacturing, high end,
internationally, exclusive market
T – To produce high-end ceramics for customers
O – Sir Charles Chocktree
W – Only producing a small number of high-end
ceramic sets to keep C&S in the market for high-
end buyers
N – Open, negative, purposeful, HAS, hierarchical,
functional
 Root definition (CAPETOWN) – To be
C – wealthy ceramic buyers (individuals and organisations), fine dining
restaurants, lower-class buyers, sit down restaurants,
A – Chocktree & Sons, Formers, Decorators, Marketing Department, Technical
Department, Samuel Chocktree, younger artisans,
P–
• 6 items/hr produced
• 11,4% 0% rejection rate
• 30 000 items/year
• 78% export
• 67% large orders, 33% small orders
• £0,5m/annum turnover
• £0,026m/annum production losses due to scrap/rejects
• £0,053m/annum raw material cost
• 5 artisans trained per year
• 25% production automated
• Value sold in mass-produced market
• Value sold across all buyer’s markets
• Increase in global brand reputation
E – Ceramics, production/manufacturing, high end,
internationally, automation, exclusive market, inclusive
market, systemic thinking, automation, middle class
T – To produce high-end and mass-produced ceramic
pieces for a greater buyer’s market
O – Harold Williams
W – Make use of the knowledge and brand name to
widen the company’s products to penetrate more
markets while still producing high-end ceramics for
more different kinds of buyers
N - Open, negative, purposeful, HAS, hierarchical,
functional, adaptable/ dynamic, technological, systemic
Speed Temp
Teguchi Method – Pieces Fired
Pieces Fired 0.2 0.3 0.4 0.5 0.6 0.7 1000 1100 1200 1250 1300
1000 75 75           75        
1100 67 67             67      
0.2 1200 58 58               58    
1250 51 51                 51  
1300 44 44                   44
1000 49   49         49        
1100 59   59           59      
0.3 1200 40   40             40    
1250 60   60               60  
1300 82   82                 82
1000 68     68       68        
1100 79     79         79      
0.4 1200 30     30           30    
1250 99     99             99  
1300 63     63               63
1000 56       56     56        
1100 38       38       38      
0.5 1200 87       87         87    
1250 76       76           76  
1300 70       70             70
1000 42         42   42        
1100 52         52     52      
0.6 1200 27         27       27    
1250 44         44         44  
1300 48         48           48
1000 33           33 33        
1100 50           50   50      
0.7 1200 43           43     43    
1250 32           32       32  
1300 30           30         30
AVERAGE 59 58 67.8 65.4 42.6 37.6 53.83333 57.5 47.5 60.33333 56.16667
Speed Temp
Teguchi Method - Rejects
Rejects 0.2 0.3 0.4 0.5 0.6 0.7 1000 1100 1200 1250 1300
1000 8 8          8       
1100 7 7            7     
0.2 1200 6 6              6   
1250 5 5                5 
1300 5 5                  5
1000 5   5        5       
1100 6   6          6     
0.3 1200 4   4            4   
1250 6   6              6 
1300 9   9                9
1000 7     7      7       
1100 8     8        8     
0.4 1200 3     3          3   
1250 10     10             10  
1300 7     7              7
1000 6       6    6       
1100 4       4      4     
0.5 1200 9       9        9   
1250 8       8          8 
1300 8       8            8
1000 5         5  5       
1100 6         6    6     
0.6 1200 3         3      3   
1250 5         5        5 
1300 6         6          6
1000 4           4 4       
1100 6           6  6     
0.7 1200 5           5    5   
1250 4           4      4 
1300 4           4        4
AVERAGE 6.2 6.0 7.0 7.0 5.0 4.6 5.8 6.2 5.0 6.3 6.5
 Pieces fired Teguchi Results
70

65

60

55

50

45

40

35

30
0.1 0.2 0.3 0.4 0.5 0.6 0.7 1000
0.8 1050 1100 1150 1200 1250 1300 1350

Conveyor Speed (feet/hour) Kiln Temperature (°C)

7.5
Rejects
7.0

6.5

6.0

5.5

5.0

4.5

4.0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 1000
0.8 1050 1100 1150 1200 1250 1300 1350

Conveyor Speed (feet/hour) Kiln Temperature (°C)

 Teguchi Analysis
Pieces fired:
• Conveyor speed increases, number of pieced decreases
• Temperature increases, number of pieced increases

Rejects:
• Conveyor speed increases, number of pieced decreases
• Temperature increases, number of pieced increases

Additional notes:
• For conveyor speeds of 0.4 and 0.5 feet/hour the number of pieces
fired increases considerably but so does the number of rejects
• For a kiln temperature of 1200°C the number of pieces fired
decreases considerably but so does the number of rejects
 Teguchi Conclusion
Assumption: Production rate – 30 000 items/year = 122
items/day (245 work days/year) = 15 items/hour (8 hours/day)

Conveyor speed must remain at 0,6ft/hr for flow rate to be

more consistent at 7.0gall/min
Conveyor Kiln Temperature Pieces fired Rejects Percentage
Speed (ft/hr) (°C) (per day) accepted (%)
0,6 1000 42 5 89,4
0,6 1100 52 6 89,7
0,6 1200 27 3 90
0,6 1250 44 5 89,8
0,6 1300 48 6 88,9

Lowest rate of rejects produced has been selected. However, it

may restrict daily production rates.
 Issues/Concerns
Issues/Concerns
a) Slow production rate
b) No contingency plan for older artisans
c) Managing Director not wanting to
adapt to change
d) Loss in sales due to low buyer’s
market for high-end/expensive
ceramics
e) Limited number of sets available
f) Expensive materials
g) High number of rejects
h) Expensive products
i) Brand reputation
 Objective Matrix
OBJECTIVE
Improve output performance and penetrate different markets
RESULTS TO ACHIEVE RESULTS TO AVOID
1. Improve production rate • No replacements for older artisans
2. Increase number of upcoming artisans • Replace all artisans with machinery
3. Increase amount of automation in production • Ruin brand reputation with cheap/ low-end
4. Increase market potential ceramics
5. Reduce the number of rejects • Increasing the number of rejects
6. Reduce material costs • Increasing incurred costs in unforeseen sections
7. Increase number of sets available
8. Penetrate buyer’s market for non-high-end
ceramics/buyers

AVAILABLE RESOURCES CONSTRAINTS

• Current, highly skilled artisans • Production rate
• Harold Williams (Marketing Director) • Sir Charles Chocktree not willing to
• Samuel Chocktree adapt to change
• Brand reputation
 Self-Interaction Matrix

8) Penetrate buyer’s market for non-high-end ceramics/buyers

3) Increase amount of automation in production
2) Increase number of upcoming artisans

7) Increase number of sets available

5) Reduce the number of rejects
4) Increase market potential
1) Improve production rate

6) Reduce material costs

OBJECTIVES
ISSUES/CONCERNS
a) Slow production rate X X X X
b) No contingency plan for older artisans X X X X
c) Managing Director not wanting to adapt to change X X X X X X
d) Loss in sales due to low buyer’s market for high-end/expensive ceramics X X X X
e) Limited number of sets available X X X X
f) Expensive materials X X X
g) High number of rejects X X X X
h) Expensive products X X X X X X
i) Brand reputation X X X X
 “What” Affinity Diagram
PEOPLE BRAND PRODUCTION MANAGEMENT
Old artisans Few design sets Slow rate of production Charles Chocktree not
available wanting to make
changes

No upskilling of young Reputation Number of rejects Samuel Chocktree

artisans

Rich and wealthy buyers High-end ceramics (high Price of materials Harold Williams
price on item)

Hand crafted

Mass produced

Automation
 “How” Affinity Diagram
Technology Training Products Management
(A) Use of more (B) Upskilling younger (C) Move into mass- (F) Change of business
automation on artisans produced market management from
production line family oriented
(quality checking) (D) Use
cheaper/recyclable
materials to reduce
costs (to company and
buyer)

(E) Allow for more sets

to be available
 A B C D E F Total %

A   1 1 5 10 1 18 23.9

B 1   10 5 5 1 22 29.3

C 1 1/10   1 1 1 4.1 5.5

D 1/5 1/5 1   10 1/5 11.6 15.4

E 1/10 1/5 1 1/10   1/10 1.5 2.0

F 1 1 1 5 10   18 23.9
1 = equal
5 = significantly more important
10 = very significantly more important
1/5 = significantly less important
1/10 = very significantly less important
 “How” Prioritisation
ID How Score (%)
B Upskilling younger artisans 29.3
A Use of more automation on production line (quality 23.9
checking)
F Change of business management from family oriented 23.9
D Use cheaper/recyclable materials to reduce costs (to 15.4
company and buyer)
C Move into mass-produced market 5.5
E Allow for more sets to be available 2.0
Tree Diagram for Bursary/ education
programme

highest priority Independent

Teaching facility institution

Linked to an artistic
school

Transfer knowledge
from experienced to
inexperienced
Upskilling young
Use current artisans
artisans Do it while on the
job

Allow for exhibitions

of work
(independent sets)

Increase salaries

Make it favourable
to become an
artesian Improve work
conditions

Adapting to new
artistic trends
 “How” Recommendations
How Details
Upskilling younger artisans See Tree Diagram
Use of more automation Automated scanning/testing
on production line (quality Test fewer items
checking)
Change of business Replace Sir Charles Chocktree with Harold Williams or anyone
management from family suitable to fulfil position duties
oriented Change company mentality to allow for change from historical ways
Use cheaper/recyclable Source cheaper materials/recyclable that are just as good quality
materials to reduce costs
(to company and buyer)
Move into mass-produced Create separate facility to focus on mass production (no need for
market highly skilled artisans)
Create a new, separate brand for mass-produced items (no loss in
reputational credibility on C&S name)
Allow for more sets to be Allow artisans to create their own unique pieces
available Increase number of artisans (requires upskilling of young artisans)