Operational Aspects Affecting Hawkesbury Cabinets Pvt Ltd

The Current Production Systems and Processes Used by Hawkesbury Cabinets

Discuss about the Operational Aspects Affecting Hawkesbury Cabinets Pvt Ltd.

As organizations are founded, they normally have few customers, operations in business aren’t monitored to a greater extend, as the business grow and begin to have a believability in the market, the owners or proprietors tend to focus more on the profit margins and the operational issues aren’t put into focus more. Methods of task accomplishment towards quality products and services, at times might be compromised. This term paper will identify process and systems that Hawkesbury Cabinets Pty Ltd has employed towards manufacture of the kitchen cabinets, both custom made and standardised kitchen cabinets. This paper endeavours to analyse operational aspects affecting Hawkesbury Cabinet Pty Ltd. It will also focus on the effect of standardised kitchen cabinets on the custom made ones and generally the operations of the business, financial implications that Hawkesbury Cabinets Pty Ltd poses in the long run as a result of building standardised kitchen cabinets or rather the implications of operational problems on organization issues.

As the reputation of the business grew, several low contracts had been signed up to supply small spec builders with a high quality but standardised kitchen cabinets. In this approach the builders were very price sensitive on the kitchen cabinets than clients who needed custom made kitchen cabinets. Though manufacture was in high numbers for the client builders, the volume of sales generated were low in comparison to what the custom made kitchen cabinets would rake in profits. The organization has a single manufacturing firm in Mulgrave, in the factory there are several tools in making cabinets which are grouped together and other assembly points throughout the factory.

The organization has used the flow shop system, whereby the departments and facilities have well designed the system enables an organization to have low process inventories and have a simplified managerial control (Koulamas, 1998).).  It has a single manufacturing point at Mulgrave, catering for both custom and standard kitchen cabinets manufacture. The factory tools are synchronised together.

Hawkesbury Cabinets Pty Ltd uses the transformation process, a change process whereby, inputs are combined to produce final results, outputs which are the kitchen cabinets are the end results, the process involves employees of the organization, assembling, painting and finishing of the products (Nersesian, 2000). In the transformative process profits are the key focus or the feedback and justification to the end products. Using the transformation process, the machines in this company such as general cabinet making one has a maximum load it can take and the production per hour is also monitored. The capacity of the transformation is highly measured by consideration of how many hour cabinets, either custom made or standardised that can be made within a period (Romanelli, and Tushman, 1994). 

The Effect of the New Builders’ Kitchen Line on Hawkesbury Cabinets’ Operations

Distribution of management roles based on manager’s competency in the business operations highly favoured Hawkesbury Cabinets Pty Ltd, Fung happens to be a master cabinet making and Mei is a qualified interior designer. They systematically analysed their skills and competencies, as the business grew, they strategically positioned themselves in their areas of specialization for the advantage of the business. In the system approach the operations manager has to be the person understanding the business operations, the manager should coordinate and motivate teams for the main objective which in this case happens to be the production of kitchen cabinets. Systems viewpoint requires strategic thinking, goals and strategies should be realistic.it requires aspect such as planning, product development and innovation (Gupta& Starr,2014). 

Mei a qualified interior designer choice was to focus on the financial aspect and general management of the company. The designer role focused on analysing the financial implications of the productions units and the feedback given by Mei helps to a large extend communicates on what should be prioritized during the production period, whether the custom made kitchen cabinets or the standardised products. Financial management and the results of an organization helps it to assess the programs in place (Lynch, 1991).

The new builder’s kitchen cabinet has resulted to a stabilization the in the Hawkesbury sales, however there hasn’t been an increase in terms of profit. There was an increase in raw materials inventory with the new builder’s kitchen, there was a snarl up in production of the standardised units, which lead to the company renting out more space since the factory couldn’t hold the standardised units unfinished products. The current operations systems were pushing the organization capacity to the limits. Time to deliver cabinets was longer than before. 

The effect the move to producing builders’ kitchens might have on the company’s financial structure  (broader organisational issues caused by operational problems).

As a result of Hawkesbury Cabinets move to produce standardised kitchen products, it has led to the organization incurring higher costs in production and less profits. When the organization is not making profits as per the input or the cost of production, the financial structure is in great peril. An organization financial structure plays many roles; the roles might not be achieved.

The Effect of the New Builders’ Kitchen Line on the Company’s Financial Structure

It is the duty of the financial structure to fund the activities such as raw materials purchase, the core business of Hawkesbury, it is produce kitchen cabinets, lack of finances will prevent the organization from funding production (Cressey, 1950).  

Cost of Production in kitchen cabinets not only involve the cost of raw materials, but also the operative costs like salaries to employees, as a result of focussing in production of the builder’s cabinet which in the long run is causing a stagnation in processes, and having implications on the overall financial structure. The financial structure will fail to meet its objective on payments to the factors of production (Ruland, 1984).

Hawkesbury Cabinets business expansion is funded by the financial structure in place, as a result of producing the builders’ kitchen cabinet, time to deliver products to the clients is taking long, the company can’t generate more revenue, as a result its financial structure will not meet its obligation of the business growth and just like there has been a stagnation in profits, there will be a stagnation in business growth the financial structure voice of making decision output decision in growth will be affected as well as promotional activities (Rothschild and Gaidis, 1981).

Financial structure will fund research activities like studying on how to reduce cost of production leading to renting out more space in storage and also study builders’ kitchen cabinet client so as to know how to raise the price of the cabinet, even though the client has been adamant not to pay excess for the service. Upon Hawkesbury continuous production of the builders’ cabinet, makes the financial structure of the organization to be in jeopardy in meeting its role in funding research and innovation tools (Kraus and Litzenberger,1973).

Conclusion

The paper begins with exploring the current production systems and processes used by Hawkesbury Cabinets Pty Ltd uses the flow shop system, where by all its processes are all synchronised at one place. Another process used is the transformation process, a change process whereby, inputs are combined to produce final results, there is also an overview of Systems viewpoint which requires strategic thinking, goals and strategies should be realistic, it requires aspect such as planning, product development and innovation. In discussion too, is the effect of the new builders’ kitchen line on Hawkesbury Cabinets’ operations which has resulted to a delay in production and having many builders’ kitchen cabinet to the extent of owning more space. Finally the paper covers on effect, the move to producing builders’ kitchens might have on the company’s financial structure  which has resulted to the financial structure not meeting its financial role in the business in overall.

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(Source: https://www.fairtrading.nsw.gov.au/Tradespeople/Developers.html)