Stickley Furniture Operations Management

Table of Content

Abstract

Stickley Furniture underwent a significant transformation under new management, resulting in impressive expansion and the development of consistent customer demand for their high-quality furniture crafted from cherry, white oak, and mahogany. Among their renowned product lines is the mission oak furniture collection. The company’s production facility is located in Syracuse, New York, with additional showrooms scattered across various locations in New York State, Connecticut, and North Carolina.

Stickley Furniture has built a strong relationship with its local customers and has gained a significant market share in the northeast. This success is due to their 1,350 employees and use of continuous, batch, and job shop production methods. By integrating these approaches, Stickley Furniture consistently follows their production schedule, allowing them to manufacture furniture even during slow periods. As a result, they always have enough inventory to meet high demand year-round. Their skillful combination of seasonal production with ongoing operations enables them to operate smoothly.

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Stickley Furniture is a reputable manufacturer of high-quality furniture made from cherry, white oak, and mahogany. They specialize in mission oak furniture and have a production facility located in Syracuse, New York. Additionally, they display their products in showrooms throughout various locations including New York State, Connecticut, and North Carolina.

Employing 1,350 individuals, Stickley Furniture has built a strong reputation among local customers and has become a prominent presence in the northeastern region of the United States. With continuous growth and advancements in technology, the company has the potential to expand its production capacity and optimize its manufacturing processes.

Stickley Furniture utilizes various processes to manufacture their furniture. They have strategically optimized their production schedule to meet seasonal demand by leveraging slower periods for increased output during busier times. The main method employed by Stickley Furniture is the continuous process, which entails generating a large quantity of standardized products with minimal variation (Stevenson, 2009).

The non-standardization of machines and production equipment does not necessitate a high level of flexibility. Worker skill levels at Stickley Furniture range from low to high, depending on the complexity of the item being produced (Stevenson, 2009). A diverse range of skill levels is employed to maintain consistent production and allocate highly skilled employees to intricate pieces. These highly skilled employees contribute to the company’s customization and inspection processes.

Lower skilled employees play a vital role in the everyday production of furniture by finishing the furniture. At the start of the production process, various methods are used to saw large and numerous pieces of lumber, depending on the current process or desired end result. These pieces of lumber are then cut into smaller, more manageable pieces to proceed with the process. Stickley Furniture has incorporated technology whenever feasible, enabling them to take these cut pieces of lumber and pass them through a computer-controlled “optimizer” saw.

The introduction of a computer-aided saw has resulted in increased productivity and reduction of waste (Stevenson, 2009). Workers manually identify major defects in the lumber before feeding it through the optimizer. The computer detects these defects and determines the most optimal cut for desired outcomes. Occasionally, specific jobs may require additional sawing operations, but those are part of a separate process. Following the sawing process, unfinished wood is glued together and pressed with large presses that can handle 20 to 30 pieces at a time. The subsequent step in the continuous production process is sanding, which removes excess glue and smoothens the wood for further processing. Once sanded, Stickley Furniture employs a CNC router to create grooves or specialty cuts. The pieces are then assembled and stamped with the production date before being moved to “white inventory”, where all unfinished items are stored. Eventually, these pieces will transfer to the finishing department based on final order specifications.

The batch process is a part of Stickley Furniture’s production process. While most of the production processes are continuous, there are some elements that involve batch processing. Batch processing is characterized by a moderate volume of goods produced with a moderate variety of products. In Stickley Furniture, this means that there is less variety in the production of goods, and the skill level required for batch processes is also moderate. An example of a batch process in Stickley Furniture is the production of detailed work in a moderate volume, such as fulfilling an order for 20 dining sets with a required design on each set.

The process mentioned above would involve a deviation from the original processing, but the main essence of the entire process remains intact. Batch processing enables more detailed or specialized orders, albeit in larger quantities. The job shop processing is another step in the Stickley Furniture production line. Typically, job shop processing operates on a smaller scale (Stevenson, 2009). It deals with a high variety of products that are usually produced in low volume. Unlike other processes, job shop orders do not follow a continuous cycle.

They are not consistent or regular, but when they do come in, they require different processing and more specialized tasks. With the advent and usage of new technology, specialization has become easier for manufacturers (Baytos & Kleiner, 2010). Stickley Furniture, having their own tool shop for repairing broken machines and tools, is able to cater to specialized orders due to the flexibility of their tools. Additionally, Stickley Furniture assigns their highly skilled employees to handle more specialized orders such as job shop orders.

This may involve carving a piece of wood by hand to meet the order’s specifications. It is crucial to track the status and location of jobs during production at Stickley Furniture. They maintain a substantial inventory during slow periods of the year. Monitoring the progress of jobs and inventory levels is essential to ensure smooth production during busy months. They produce more partially finished products than currently required, which are stored in “white storage” until further processing.

Stickley Furniture employs a barcode system to track the progress of unfinished furniture pieces before they are transferred to “white storage”. Each piece is tagged with a unique barcode, allowing managers to monitor its progress and track inventory movement within the shop. Effective aggregate planning for large orders is crucial for Stickley Furniture, as it ensures that scheduling and processing of jobs are well-executed, contributing to the overall success of the production process.

According to Stevenson (2009), the processing of jobs must be determined based on factors such as the order it was received, the due date, or the quantity of the order. If Stickley Furniture receives an order for 40 mission oak dining room sets, they would need to implement different plans and schedules to ensure effective action. One crucial step is to ensure an adequate supply of wood in stock, which encompasses ongoing jobs as well as previous ones before the 40 mission oak dining room set order.

If there is insufficient wood for the project, the manager should contact the appropriate ordering team who will then notify the supplier of the need for additional oak wood. Once it is verified that the order can be initiated, they must assess if there is adequate time to finish all 40 pieces by the deadline. This may involve utilizing unfinished dining sets from previous productions, if they are accessible. The availability of such sets can be determined by accessing the computer system that stores information acquired from the bar code entry system.

The job begins by completing all of the dining chairs, allowing the workers to keep the machines and tools in the same position so that they don’t have to adjust for producing a table. When the chairs are finished, they are moved into the finishing room. Once the last chair has started processing, the workers can start repairing and changing any mechanisms necessary to produce a dining table. The tables are then moved through the same process as the chairs. The order is considered complete when the furniture is boxed and prepared for shipping.

The job progress will be monitored for errors using the barcode system. Stickley Furniture follows a level production policy, meaning they maintain a steady level of production. This production level is aligned with the company’s seasonal demand patterns. During slower periods, any surplus products are stored in inventory. This inventory is then utilized to meet the higher demand during busy times. The job sequence is determined based on the remaining inventory and job processing time.

According to Stevenson (2009), there is flexibility in sequencing that allows for the production of similar jobs with similar setups together. Stickley Furniture takes advantage of this by implementing a level production policy. This policy allows them to utilize low demand periods effectively, as production downtime during these times can result in financial losses. Instead of pushing production during peak times and risking lower quality items, Stickley Furniture maintains a level production and stores the pieces in inventory. This way, they are able to supplement peak production periods with items from their inventory, taking advantage of the low demand period.

Another advantage of Stickley Furniture’s level production policy is the ability to streamline similar jobs, resulting in reduced setup time and cost savings (Stevenson, 2009). Additionally, this approach ensures the safety of workers and maintains product quality by preventing equipment and labor from being pushed to their limits (Stevenson, 2009). While there are numerous benefits to adopting a level production system, it is not without its challenges. Stickley Furniture faces uncertainties regarding future inventory needs during peak periods due to the inability to predict demand (Stevenson, 2009).

Forecasting based on previous years’ data is a possibility, yet it may lack accuracy. Consequently, there is a risk of overproducing and accumulating excessive inventory, which may not be sold. Furthermore, the absence of scheduled downtime for production puts them in jeopardy of falling behind if the production line needs to be shut down for major repairs. Additionally, if an urgent project arises, it could prioritize other tasks and disrupt the seamless flow of production.

Beneficial Changes

Stickley Furniture successfully utilizes their time by maintaining consistent production levels. This enables them to maximize productivity during periods of high demand and capitalize on off-peak periods. To incorporate a total quality management (TQM) approach into their production process, Stickley Furniture must consistently strive to enhance the quality of their projects. Their workers actively inspect the products throughout the production process, ensuring that any issues are promptly addressed. The final inspection is carried out by the quality control team.

To implement a TQM strategy, it is important to prioritize customer satisfaction and ensure that deadlines and other requirements are appropriately fulfilled (Smith, 2010). It is not advisable to make major changes to the manufacturing process.

References

  1. Baytos, K, & Kleiner, B. (1995, February).
  2. New Developments in Job Design. Business Credit, 97(2), 22. Smith, J.. (2011, July).
  3. Enhance Your Quality Culture. Quality, 50(7), 18. Stevenson, W. (2009).
  4. Operations Management (10th ed. ). New York, NY: The McGraw-Hill Irwin Companies, Inc.

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Stickley Furniture Operations Management. (2016, Dec 06). Retrieved from

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