Stickley Furniture: Production Processing and Operations Management

Types of Production Processing

To understand and assess which type of production processing is used in this business scenario, it is first necessary to understand the distinctions inherent in each of the four main categories: job shop, batch, repetitive, and continuous.

Job shop — A variety of custom-made products is produced in batch numbers but in relatively limited diversity. Most products require an exact sequencing and setup of processing steps. Similar tasks and equipment are grouped together — for example, grinding presses in one area and drill machines in another — and general-purpose equipment is used rather than specially designed machinery. In factory-like fashion, jobs pass through the various areas to be completed, with some areas being skipped for certain projects while others may be used more than once. Employees are generally highly skilled, and the key duty is moving the task or project from station to station until it is completed.

Batch processing — This occurs when many similar items are produced simultaneously, such as cricket balls. The object in batches is developed stage by stage from station to station, and many items are produced at the same time.

Repetitive processing — Also known as mass production, large quantities of standardized items are produced at one time on factory lines. Examples range from food, chemicals, fluids, and colorings to small parts such as hooks, or the assembly of a finished product.

Job Shop Processing at Stickley Furniture

Continuous processing — Here the products being processed are continuously in motion, with activities performed on them as they move down the line. Examples include oil refining, pulp and paper processing, gas processing, metal smelting, fertilizer production, glass manufacturing, and synthetic fiber production. A system of process control is used to monitor and supervise the process, with techniques including regulating temperatures, machine speeds, tank levels, and flow rates (Khosrow-Puor, 2006).

Job shop processing appears to be the primary mode of production at Stickley Furniture. Skilled workers are involved throughout the process. A variety of custom-made products are produced in batch numbers but with relatively limited diversity. Most products require an exact sequencing and setup of processing steps. Similar tasks and equipment are grouped together — grinding presses in one area, drill machines in another — and general-purpose equipment such as saws, sanders, and similar tools is used rather than specially designed machinery (Schmenner, 1998).

In factory-like fashion, jobs pass through various areas to be completed, with some areas skipped for certain projects and others used more than once. The process begins with large boards being cut into smaller sizes. Workers first examine these boards and mark them before passing them to the saw. A computer determines the optimal length and number of cuts. Pieces are then glued, with large presses holding various glued pieces together simultaneously. Sections are sanded, and some pieces require drilling, mortising, or carving, with particular machinery or workers assigned to these specific tasks.

One of the final steps involves workers assembling the diverse pieces together. Different components of each article of furniture are stamped with their location — for example, "desk drawer" — and the date of production. Records are kept of each piece made to facilitate repairs if needed. Items are then moved from one inventory to the finishing inventory, where the culminating touches are applied before the piece is shipped to stores or directly to customers.

The entire production process accords with the job shop description: tasks pass from station to station, some skipping certain stations while others replicate them, and articles are produced in carefully controlled batches of a limited range of products. Like typical job shops, Stickley competes on quality of outcome and economy of production time rather than on price.

Also characteristic of job shop processing, and clearly evidenced here, is the fact that employees are generally highly skilled craftsmen. Their key responsibility is moving the task or project from station to station until it is completed.

Tracking Job Status and Planning Large Orders

To a lesser extent, batch processing is also present. Many similar items — various types of chairs, for instance — are produced in batches, with pieces cut, fed into the computer, sanded, glued together, subjected to specific tasks such as carving, dated, polished, and then sent to the finishing department before being shipped. Although batch processing is a secondary description of the overall operation, it is also applicable in that specific pieces produced in bulk are dispatched from station to station where different tasks are applied before they move on to the next procedure.

Each job has a bar code that identifies both the job and the operation. Upon completion of a job, the bar code is removed and sent to the scheduling office, where it is scanned into the computer, notifying staff that that portion of the task has been completed. This helps production control keep pace with the production of each article, know where it stands in the process, and determine where the article is located in the facility.

For an order of 40 mission oak dining room sets, the company will need the raw materials, purchased parts, and other components of the assembled items. It must determine when and how much to order of each material, factor in lead times for ordering and receiving materials, identify reliable suppliers, and establish how long each supplier will take to deliver the required resources. This ensures that ordering, fabrication, and assembly can all be completed within a pre-allotted period. Timely completion also allows inventory records to be kept low.

Material Requirements Planning (MRP) is the process by which a manager or team works out the information needed to plan, schedule, and execute the job. MRP requires answers to three essential questions: (a) what is needed — the exact materials, resources, and sub-components required to make the sets; (b) how much of each material is needed; and (c) when is it needed? These questions must be answered before the dining room sets can be produced efficiently.

The master scheduler communicates to the project director the time-phased goals for processing the dining room sets, while inventory reports indicate how much stock is on hand or on order. With this information, the planner can determine, during each phase, what is required and what resources are available. For example, the master schedule might specify that shipment of 10 sets to a particular store or customer will begin at the end of week X, while another shipment of 10 sets to a different customer will be activated by week Y.

The bill of materials provides the team with a listing of the assemblies, subassemblies, parts, and raw materials needed to complete the dining room sets, along with the required quantity of each. Inventory records contain additional essential information, including gross requirements, expected available resources, and scheduled receipts. They also include supplier details, lead times, and lot size policies, as well as changes resulting from withdrawals, canceled orders, stock receipts, or similar events.