109 CASE STUDY Dream Desk Compary Dream Desk Company is a major supplier of office desks for can profit from this market growth if prices can be held in line home and business. The company has been in existence since 1875. Affler serving an apprenticeship as a cabinet maker in the and quick delivery can be promised. Dream Desk operates a 250,000 sq. ft. manufacturing fa- cast, George Dreamer had a violent disagreement with the shop eility in Casa Petite, TX. The plant currently employs 160 full owner and quickly decided it was best to move west. He opened time workers of which 125 work in production. Rocent pres- up his own shop for making custom desks for homesteaders, sure from increased wood prices and more aggressive marketing ranchers, and small businessmen who couk not afford expen- from eastern manufacturers has made it clear to Jim Dreamer. sive imported desks. The company is still nan by te Dreamer Plant Manager, that the company needs lo reduce ats manufac- family and has maintained a niche in the midde-priced bome turing oost and delivary lead tiime. Dreamer has comsidered de and small business office furmiture marke. Dreamer furniture veloping a new production and inventory control system with has a good reputation for value. This reputation has been buil some of the features of the just-in-time system he gained knowl- edge of at a recent seminar. on sturdy construction including tongue-and-groove comers, good customer service, and strong regional marketing The company has three basic grades of desks, each with The Production Process All desks go through similar pro several styles. The grades are solid oak construction, solid pine duction sequences. The desk is essentially comprised of a frame construction, and oak veneer. All together, there are fourteen and drawers. Drawers are assembled from a front, handic, two standard material-style desk combinations. Two styles, the con- sides, back, and botton. Vencer drawers have a two-piece froet. Each piece is rough cut fro, stock and then one or mo temporary and frontier, have accounted for 65% of sales in the pest two years. The oak veneer-frontier model represents tp- are sanded to provide reference surface for fixturing on ma- proximately 25% of sales. Pine-frontier and oak-coniemporary chines. Oder edges are een sawed and unded. During this each account for another 10% of sales. In addition to the stan-stage, the patented Dreamer top (rounded tops to drawer sides dard styles, customers occasionally request a custom order of and engraved pictograph on the top of the drawer front) is added. special design. Custom orders account for approx maley 20% The priceless Dream trademark seal is then applied to the ieft ofsaies and 40% ofproats. Last year. Dream Desk sold 81.450 side of the drawer For drawers with a lock be hole is punched desks for a revenue of $15.7 million. Orders vary in size from and the top of the door grooved during drawer part construc- five to 500 desks, but most orders are for 50 desks or less. Sales tion. Historically, drawers were made by sending them through ane seasonal with about 70% of deliveries toquestod for August a series of saws, drins, routers, sanders. Parts then come to through November, but Dream Desk has always tried to main gether at an assembly bench for itting and gluing. A new $ ain a consant workforce. Overtime is used during peak sca millin automated system has been installed tha can fabricate sons and machine mainienance, skills cross-training, and de parts automatically with rapid changoover between styles The velopment of new models is scheduled for the slow season. The previous arangement wasa process layout with three sews, demand for desks slso follows the 3 to 5 year business cycle. three drills, four routers, six sanders, and six assembly stations. Currently, we are entering an upswing and the local market is These machines still exist, and, with the exception of assem- expected to grow 20% over the next 18 months. Dream Desk bly, require approumately 30 minutes to changeover between part types. Over time, the market has demanded more of the seried and screwed tight, drawers are adled to the frame, the six-drawer desks, and this department had become the bottie finish is checked for blemishes, and then the desk is boxed and neck in production. The new system increases capacity about moved to the shipping warebouse.Amy required fit adjusments 82% while requineg only one additonal operaer. (It was fell and cosmetie repairs are performed by line workers. At fult thal the new system would also improve quality and reduce the speed, the line takes 12 line workers and completes one desk 90 seconds need for overtime) every Dream Desk has historically hired unskilled workers. As Prames are made inaseparate department Legs are cut from bar slock and sanded. The conlemporary styles roquirea experience and iraining are scquirod, wages and responsibility turning operacion on one of he three engine lathes. The other increase Cmently, workers have an average leaded cost of SA styles require a shaping operstion after utting. Both six and per hr. On average, a desk roquires four hours of labor. The eight leg versions of desks (crawers on oce side or both sides) plant usually operaces a full first shift and a partial second shift are produced. Desk tops, sides, and backs are out and sanded. both shifs operate five days per week. The plant shuts dow In each case, the referonce surface is created first. The confor the Arst rwo weeks of July. During thistme, ajor machine emporary styles have elaborate detail on the sides and require orhauls and changes in machine lsyouts may be implemented. exlensive router time. The veneer models have the deiails en- graved onto the vereer coverings which are then glued onto the Project Scope As plant industriai engineer, you are charged plywood frames. Both manual and aulomaied gluing stations with putting togeaber a team to design and implementanew are available with the manua!stations being sued for short rans production and inventory controi system for this plant. The main because setup is quicket. All together, the frame departmenl has objective is to reduce cost and WIP invenlory. You should de- 0 first shift diroct-line workers witb five saw operstors, ermine how the facility will be arranged and the procedure for router, four gluing workstations, five shapers, and two lathe conuroliling the flow of orders through the sbop. Ror example will you use aprocess layoul, ceiular layout, ar product lay- Ail parts and frames visit the paint deparmcat Drawers out? What material handling load size will you use for moving re hung on a conveyor and frames ride on pallets. The fist parts between workstationa (Le, mave one part at a time to the step is an air spray to remove dust and particles. Two couts of adjacent machine or move an entire batch at atime)? You should inish are then addod followed by a clear lacquer coat Partse specify which iterns sbould be kept in inventory and which items quire two hours to dry between cach con. The paini departsent should only be produoed when ordered. You must specify pro- requires 24 workers when operating ai full strength. Turnover duction batcb sizes for items made-to-stock has been a problem in the paintetment. As a resuil, Daeanm The first step is to list the products and parts via a bill of Desk a secently increased the wages in this area by materialsDocument this in a flow chart You may then decide S0.20/hour Temporarily, this has solved the turnover problem.which parts will be made-to-order and which will be made-1o- Material handling is malnly conducted by workers pushsock Using an economic criterion, select appropriate batch ing cars A cart can hold 40 drawer parts (sides, backs, bo- sizes for make-to-stock items.Document the procodure for se oms, or froms), 40 desk legs, or ten desk parts (sides, os, lecting the part to produce at each stage and for authorizing backs). Prames are moved on lai carts, one trame per can or production. Likewise, doeument the mserial handing system, on overhead conveyons Up to 12 drawers can be sacked onincluding part transfer quancities and move equipment that will be used. You may assume ample wwehousing space is avail- fat cart for uanaport The final step is an assembly line. Herm, the uable top is able. caps are added to the botom of legs, locks we in hasd
109 CASE STUDY Dream Desk Compary Dream Desk Company is a major supplier of office desks for can profit from this market growth if prices can be held in line home and business. The company has been in existence since 1875. Affler serving an apprenticeship as a cabinet maker in the and quick delivery can be promised. Dream Desk operates a 250,000 sq. ft. manufacturing fa- cast, George Dreamer had a violent disagreement with the shop eility in Casa Petite, TX. The plant currently employs 160 full owner and quickly decided it was best to move west. He opened time workers of which 125 work in production. Rocent pres- up his own shop for making custom desks for homesteaders, sure from increased wood prices and more aggressive marketing ranchers, and small businessmen who couk not afford expen- from eastern manufacturers has made it clear to Jim Dreamer. sive imported desks. The company is still nan by te Dreamer Plant Manager, that the company needs lo reduce ats manufac- family and has maintained a niche in the midde-priced bome turing oost and delivary lead tiime. Dreamer has comsidered de and small business office furmiture marke. Dreamer furniture veloping a new production and inventory control system with has a good reputation for value. This reputation has been buil some of the features of the just-in-time system he gained knowl- edge of at a recent seminar. on sturdy construction including tongue-and-groove comers, good customer service, and strong regional marketing The company has three basic grades of desks, each with The Production Process All desks go through similar pro several styles. The grades are solid oak construction, solid pine duction sequences. The desk is essentially comprised of a frame construction, and oak veneer. All together, there are fourteen and drawers. Drawers are assembled from a front, handic, two standard material-style desk combinations. Two styles, the con- sides, back, and botton. Vencer drawers have a two-piece froet. Each piece is rough cut fro, stock and then one or mo temporary and frontier, have accounted for 65% of sales in the pest two years. The oak veneer-frontier model represents tp- are sanded to provide reference surface for fixturing on ma- proximately 25% of sales. Pine-frontier and oak-coniemporary chines. Oder edges are een sawed and unded. During this each account for another 10% of sales. In addition to the stan-stage, the patented Dreamer top (rounded tops to drawer sides dard styles, customers occasionally request a custom order of and engraved pictograph on the top of the drawer front) is added. special design. Custom orders account for approx maley 20% The priceless Dream trademark seal is then applied to the ieft ofsaies and 40% ofproats. Last year. Dream Desk sold 81.450 side of the drawer For drawers with a lock be hole is punched desks for a revenue of $15.7 million. Orders vary in size from and the top of the door grooved during drawer part construc- five to 500 desks, but most orders are for 50 desks or less. Sales tion. Historically, drawers were made by sending them through ane seasonal with about 70% of deliveries toquestod for August a series of saws, drins, routers, sanders. Parts then come to through November, but Dream Desk has always tried to main gether at an assembly bench for itting and gluing. A new $ ain a consant workforce. Overtime is used during peak sca millin automated system has been installed tha can fabricate sons and machine mainienance, skills cross-training, and de parts automatically with rapid changoover between styles The velopment of new models is scheduled for the slow season. The previous arangement wasa process layout with three sews, demand for desks slso follows the 3 to 5 year business cycle. three drills, four routers, six sanders, and six assembly stations. Currently, we are entering an upswing and the local market is These machines still exist, and, with the exception of assem- expected to grow 20% over the next 18 months. Dream Desk bly, require approumately 30 minutes to changeover between part types. Over time, the market has demanded more of the seried and screwed tight, drawers are adled to the frame, the six-drawer desks, and this department had become the bottie finish is checked for blemishes, and then the desk is boxed and neck in production. The new system increases capacity about moved to the shipping warebouse.Amy required fit adjusments 82% while requineg only one additonal operaer. (It was fell and cosmetie repairs are performed by line workers. At fult thal the new system would also improve quality and reduce the speed, the line takes 12 line workers and completes one desk 90 seconds need for overtime) every Dream Desk has historically hired unskilled workers. As Prames are made inaseparate department Legs are cut from bar slock and sanded. The conlemporary styles roquirea experience and iraining are scquirod, wages and responsibility turning operacion on one of he three engine lathes. The other increase Cmently, workers have an average leaded cost of SA styles require a shaping operstion after utting. Both six and per hr. On average, a desk roquires four hours of labor. The eight leg versions of desks (crawers on oce side or both sides) plant usually operaces a full first shift and a partial second shift are produced. Desk tops, sides, and backs are out and sanded. both shifs operate five days per week. The plant shuts dow In each case, the referonce surface is created first. The confor the Arst rwo weeks of July. During thistme, ajor machine emporary styles have elaborate detail on the sides and require orhauls and changes in machine lsyouts may be implemented. exlensive router time. The veneer models have the deiails en- graved onto the vereer coverings which are then glued onto the Project Scope As plant industriai engineer, you are charged plywood frames. Both manual and aulomaied gluing stations with putting togeaber a team to design and implementanew are available with the manua!stations being sued for short rans production and inventory controi system for this plant. The main because setup is quicket. All together, the frame departmenl has objective is to reduce cost and WIP invenlory. You should de- 0 first shift diroct-line workers witb five saw operstors, ermine how the facility will be arranged and the procedure for router, four gluing workstations, five shapers, and two lathe conuroliling the flow of orders through the sbop. Ror example will you use aprocess layoul, ceiular layout, ar product lay- Ail parts and frames visit the paint deparmcat Drawers out? What material handling load size will you use for moving re hung on a conveyor and frames ride on pallets. The fist parts between workstationa (Le, mave one part at a time to the step is an air spray to remove dust and particles. Two couts of adjacent machine or move an entire batch at atime)? You should inish are then addod followed by a clear lacquer coat Partse specify which iterns sbould be kept in inventory and which items quire two hours to dry between cach con. The paini departsent should only be produoed when ordered. You must specify pro- requires 24 workers when operating ai full strength. Turnover duction batcb sizes for items made-to-stock has been a problem in the paintetment. As a resuil, Daeanm The first step is to list the products and parts via a bill of Desk a secently increased the wages in this area by materialsDocument this in a flow chart You may then decide S0.20/hour Temporarily, this has solved the turnover problem.which parts will be made-to-order and which will be made-1o- Material handling is malnly conducted by workers pushsock Using an economic criterion, select appropriate batch ing cars A cart can hold 40 drawer parts (sides, backs, bo- sizes for make-to-stock items.Document the procodure for se oms, or froms), 40 desk legs, or ten desk parts (sides, os, lecting the part to produce at each stage and for authorizing backs). Prames are moved on lai carts, one trame per can or production. Likewise, doeument the mserial handing system, on overhead conveyons Up to 12 drawers can be sacked onincluding part transfer quancities and move equipment that will be used. You may assume ample wwehousing space is avail- fat cart for uanaport The final step is an assembly line. Herm, the uable top is able. caps are added to the botom of legs, locks we in hasd
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...