Creative Concept Essay

I. TIME CONTEXT The case is analyzed when problems affecting the company’s operation took place, inventory cost rises, and lead time for manufacturing custom and standard product line increases. It was then that Thomas decided that it’s about time to take a careful look at the overall impact the new standard furniture line is having on his operation. II. POINT OF VIEW Chad’s Creative Concept started with a good vision of producing custom-made wooden furniture for vacation cabins bringing â€Å"a bit of outdoors inside†. Gaining popularity, evidenced by the increasing demand for their products,  they’ve proven themselves and earned the trust of their clients with subtle and elusive tastes. Opportunity came for the company to venture into the production of a more standard line of furniture. This endeavour could have been great but such affected the company’s operations, marketing and finances. Alterations could have been done in the overall manufacturing process of the company or conducting a marketing analysis could provide insights and working out the marketing segmentation on the potential demand for the standard line products. Most likely, the company was not that much ready to embark on this new line of furniture making in terms of their managing their resources and making the most out of them. Consequently, problems arose and if this situation will continue, additional investment in product cycle will be low or even zero at some point of time. If this will not be given much attention and proper solution will make matters worse. III. STATEMENT OF THE PROBLEM Enumerated below are the problems identified in the case of Chad’s Creative Concepts. How did producing standard furniture affect Chad’s Creative Concept’s operations and its financial gain? How can the company operations or slow manufacturing process be improved to cater market demand for both furniture lines? What can the management do to reduce production costs while upholding customer satisfaction? IV. OBJECTIVES The following are the objectives the case proponent would like to achieve in order the address the problems faced by Chad’s Creative Concept. To ascertain the operational and financial effects of manufacturing standard furniture. To determine ways on how to improve company operations to cope with the increasingly steady demand for standard and custom-made furniture. To decrease production cost without sacrificing product quality and customer satisfaction. V. AREAS OF CONSIDERATION A. SWOT ANALYSIS STRENGTHS: The company began by producing custom-made furniture and in a short period established a stable reputation for creative designs and high-quality workmanship. Growth of sales led into the production of a more standard line of furniture. Can offer products at the lowest possible price with utmost customer satisfaction. Producing custom and standard furniture offer customers with more choices. WEAKNESSES: Single manufacturing process for both standard and custom furniture. Processing time on the same equipment and craftspeople are shared in manufacturing custom and standard furniture. The holding cost of the company is increasing with dollars tied up in inventory, both of raw materials and work in process. OPPORTUNITIES: Good reputation yields custom furniture sales to be strong and steady sales growth for standard line furniture. THREATS: Customer demands lowest possible cost with maximum satisfaction, in terms of product quality and delivery requirements. Custom furniture is prioritized in making schedules because of its high sales and profit margin causes delay of finishing standard furniture. Costs associated with standard furniture line are increasing. Expensive storage or warehousing cost. Increasing lead time for both custom and standard orders causing longer promised delivery times. Capacity is at its peak providing no space left for expansion.VI. ALTERNATIVE COURSES OF ACTION In order to address the issues faced by the management of Chad’s Creative Concept the following alternative courses of action may be implemented: 1.Relocation of warehouse to an economical and cost saving location. 2.Recruitment of additional staffs e.g., craftsman. By doing so, both  product lines will not compete for the same craftspeople. 3.Encourage existing staffs for overtime in order to reduce delay in manufacturing products, by providing night differential fees and hazard fees. 4.Given that both manufacturing lines are in demand, business capacity maybe enlarged by enabling more facilities to accommodate processing of both product lines. 5. Employ inventory management. This includes developing a forecasting technique about product demand and making right layout and work flow process. Make scheduling decisions, entails how much to produce, to make sure there are not so many raw materials as work in progress status. VII. DECISION CRITERIA The following criteria were used to evaluate the suitability of alternatives recommended in making the decision: Maintain customer satisfaction and company reputation. It is important to note that decision must be based on this rationale because the longevity of a business may be determined by the patronage of its satisfied clients. Chad’s Creative Concept best marketing strategy is the quality furniture they produce for both product lines. Moreover, customers of standard furniture line imposed more stringent delivery requirements, increased lead time for both product lines causes longer agreed delivery times which may garner dissatisfied customers and tarnish company reputation. Improve or at least maintain profitability. Finance and accounting disclosed that profits are declining because of costs congruent with the standard furniture line. Priority given to custom furniture line delayed the generation of revenue for standard furniture line. A company even with a good reputation may not stay in the business if its sales can’t support company operation and administrative expenses. Reduction of cost through proper management of resources such as time, inventory and manpower, will increase profit margin. Hence, it is important at this point to base decisions on this criterion. VIII. DECISION ANALYSIS ALTERNATIVE PROS / ADVANTAGES CONS / DISADVANTAGES 1 Relocation of warehouse with a cheaper rental fee will lessen costs and increase profitability. May incur relocation cost. Since new warehouse is cheaper it may not be that big to accommodate raw materials and inventories. 2 Can manufacture more products and accommodate market demand for both lines and deliver the products on time maintaining client satisfaction. Thus, increasing sales and profit margin. Increase in salaries expense decreases profit margin. May spent time for training new recruits. Learning curve may be lower as they start off. 3 Can increase number of finished products and increases sales. Quality of work may suffer. Employees may get exhausted for working overtime and tend to finish it at a shorter time than usual. Increase salaries expense and decrease profit margin. 4 Can speed up processing time since both lines will not compete for the same equipment. Hence, sales will be increased. Increase asset – capital investment. There is no space left in the plant for expansion. Manpower should also be increased to operate new facilities which increase salaries expense and decrease profit margin. 5 Conceptualisation of right layout and work flow process suitable for both lines would expedite production process. Developing forecasting techniques in understanding demand of products will facilitate timing of procurement of raw materials ex. Just-in-Time Strategy which avoids too much investment on hanging raw materials and work in process inventory. Hiring experts for making the right lay-out and for developing forecast will incur professional fees thus, increasing expenses or costs. IX. DECISION Based on the information presented in the case of Chad’s Creative Concept, the case proponent would like to recommend that alternative no. 5 which entails inventory management address best the problems enumerated above and matches the criteria specified. Hiring an expert who will conceptualize right lay-out for work flow process will speed up manufacturing procedure and configure standard and customized so to reduce setup and changeover time and cope with the demands. Hence, delivery requirement will be met and customers will be satisfied in consideration of preserving company reputation. Moreover, results of forecast will be useful in the timing of procuring raw materials to avoid unnecessary expenditures such as holding cost which will boost up profits. As disclosed in the case, the plant capacity is at its full, plant has no space left for an expansion, and costs associated with the standard line are rising because there is no active sale and the inventory is increasing in the form of raw material and work in process which is holding the investments of the company. It is recommended that the JIT system should be used. Just in Time (JIT) is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs which at this point is what the company needs. This inventory supply system represents a shift away from the older â€Å"just in case† strategy, used by Chad’s Creative Concept, where producers carried large inventories in case higher demand had to be met. Though hiring experts will incur cost still the â€Å"benefits exceed costs†. Bearing in mind this principle will further company success and the going concern of the business. X. STRATEGY OF IMPLEMENTATION In implementing the decision the following should be done: Lay-out current manufacturing process. Hire experts who will make the forecasts techniques in understanding demand and conceptualise the layout and work flow process appropriate for both product lines. Lay-out developed should undergo dry run if it would accelerate manufacturing process and achieve the product quality desired. Such as: Product layout for standard line product, usually used for large volume products. Process layout for custom products is used when there are  diversified products using broad-spectrum operations, varying volumes and varying rate of output. Properly laid out factory can ensure the smooth and rapid movement of materials, from the raw material stage to the end product stage. In implementing the new inventory strategy, Just in Time system, supply chain should be adequate and would match demand projected.

SFAS 154 - Accounting Changes and Error Corrections Assignment

SFAS 154 - Accounting Changes and Error Corrections - Assignment Example At times, it also happens that a change in the accounting policy or principle affects the consolidated financial statements of the group as well. So, SFAS 154 aims to highlight all of the above discussed issues in details and provide appropriate guidance as how to incorporate the effects of all those changes in the financial statements of the reporting entity. This article is structured in such a manner that first section describes the overview of SFAS 154 which includes the objective of its issuance as well as the scope of this standard. Next section focuses on recognition, measurement and disclosure requirements of SAFS 154. Third section highlights the comparison of SFAS 154 of FASB with IAS 8 of IASB i.e. a comparison between US GAAP and IFRS in respect of these two standards. An illustrated example is also provided after the comparison of the standards which is then followed by a conclusion which summarizes the whole article. Overview of SFAS 154 Objective Mainly the objective o f FASB to issue this standard is to bring more convergence with IASB towards the preparation, development and furnishing the financial statement as a high quality single set across the world (Deloitte, 2008). As IASB has issued IAS 8 on similar footings, therefore it is the intension of both accounting standard boards to bring more harmonized financial statements in most of the areas of accounting. ... The section â€Å"Accounting Changes† is further divided into three areas which are â€Å"Changes in Accounting Principle†, â€Å"Changes in Accounting Estimates† and lastly, â€Å"Changes in the Reporting Entity† (Financial Accounting Standard Board, 2009). Scope The scope of this standard covers three areas which are listed below (Financial Accounting Standard Board, 2009): 1. SFAS 154 is applicable for both profit making business organizations as well as not-for-profit organizations. In this standard both these kinds of organizations are referred to as â€Å"entities†. 2. Another application of SFAS 154 can be possible in case of summarized financial information which are primarily based upon the financial statements such that accounting changes are reflected in the accounting period in which those changes have arisen. 3. SFAS 154 also encompasses the other forms of financial statements which are prepared for some special purposes. Measurement, R ecognition and Disclosure Changes in Accounting Principles SFAS 154 provides specific guidelines to incorporate a change in the accounting principle. A change in the accounting principle is the change that has been made by FASB by making amendment, addition or deletion in the existing accounting standards issued by FASB (Financial Accounting Standard Board, 2009). FASB requires the entities to bring the effects of the changes in accounting principle retrospectively such that all of the previously issued financial statements need to be modified as a result of change in accounting principles (Deloitte, 2008). SFAS 154 also guides the entities in the situations where it is not practicable for the entities to bring the effects of the

If industrial robots get cheap enough, they may replace almost all Essay

If industrial robots get cheap enough, they may replace almost all unskilled factory worker in the future. discuss the benefits and costs of this to society - Essay Example There are certain estimations, which indicate that, by year 2025, robots would have taken almost 50 percent of the total jobs in the United States. The impact of industrial robots on employment patterns would vary amongst different industries, and there are reasons to believe that the automotive industry, food services industry and the manufacturing industry would be amongst the ones that would be impacted the most. In these industries, robots would replace as much as 95 percent of the total workers (Skaar & Castillo, pp. 63-64, 2012). These three industries, combined, would replace more than 44 million workers. In fact, calculations also indicate that by the end of 2012, the number of industrial robots, within US alone, would increase to the level of 1.2 million. More importantly, despite the dismissal performance of economy and recessionary pressures, there has been a 20 percent average annual increase in the employment of industrial robots. By the year 2013, there would be one rob ot worker for every 6000 people living on this planet and there are reasons to believe that, within a few decades, the world would have more robots that people (Briggle, et al., pp. 104-106, 2011). Proponents of replacing human workers with robots believe that this would mark a new era in improving the quality of living of people. Life on this planet would become more comfortable, and industries would be able to reduce their costs, drastically, thus allowing consumers as well as industries to gain from the savings (Skaar & Castillo, pp. 63-64, 2012). On the other hand, proponents of these ideas believe that it will only increase the problems in developing and third world countries of the world, which are plagued, already, by problems of high inflation, poverty, and unemployment. In many of these countries, a significant chunk of people is employed in the manufacturing sector, performing

Type of Diversity Management Essay Example | Topics and Well Written Essays - 2750 words

Type of Diversity Management - Essay Example There have been numerous abuses and struggles that resulted directly from the interaction of people of different backgrounds in nations around the world. This led to different forms of wars and other civil uprisings around the globe. Notable amongst them is the American Civil Rights strive that abolished segregation and instituted equal rights in America. In Europe, the differences in ethnic groups and nationalities culminated in the Two World Wars and the redrawing of the borders of nations and peoples after the Second World War. The next phase of diversity in Europe was the immigration of people from different parts of the world into Europe. These minorities became significant and the need to include and respect such persons became imperative over the years. Equal rights and legislation exist everywhere today but discrimination exists in most workplaces (Barak, 2010) p235). This means that although there are numerous effort to recognize the various minorities around the globe, ther e are still a lot that need to be done to ensure that the various social groups are recognized and respected duly in organizations. â€Å"In response to promoting diversity in the workplace and the world, many companies have instituted specific policies and programs to enhance recruitment inclusion, promotion and relation of employees who are different from privileged echelons of society (Barak, 2010 p235). This refers to the fact that most have made conscious efforts to respect the rights of minorities and less included persons through policies and programs that are designed to ensure that there is the inclusion of people of all backgrounds in work environments around Europe. According to Subeliani & Tsogas (2005), there are various policy-making and academic debates that affect and determine the growth of diversity management in Europe.  

Live Performance Review Essay Example | Topics and Well Written Essays - 750 words

Live Performance Review - Essay Example Currently, The Blind Tiger stands out as the best live music venue in the state of North Carolina. It is committed to bring out the best out of regional, local and national music. Almost all the local talents that reside in Greensboro attribute the exposure and discovery of their talent to the Tiger (Coston 56). With twenty five years of supporting live music, the club anticipates to remain indisputable in offering the best entertainment in the region. The summer Breeze Concert was conducted by the Jazz Revolution band. The band consisted of Letron Brantley on saxophone and flute, Mark Catoe on acoustic Piano, Wilbur Thompson on acoustic Electric Bass and Upright, Kristin Randals as lead vocalist, Adam Snow on the drums and Mayhue Bostic on the guitar. The six piece jazz ensemble performed on a small stage at the one of the ends of the Tiger club. The concert was set in a small and intimate space to provide the best setting for jazz hearing. Half of the stage is taken by a baby grand piano. The band performed a mixture of modal and hard bop jazz. Just like any other genre of music, jazz music entails the telling of a story (Ake et al 2010). The jazz revolution band collectively performed ten of their pieces; however, only four of them were different in terms of style, allowing the audience to get diversified sounds of jazz music. The band performed â€Å"Fly Me to the Moon â€Å", an upbeat standard with a consonance, Latin –inspired, at the beginning of the song that set out the romantic mood, initially. A saxophone-piano served as an alteration to the song’s melody, creating an impression of two lovers flying to the moon. The rhythm of the song was initially steady but fastened up as the song was approaching its climax. With an increased passion for the song, the texture had a new twist as the saxophone carried on the melody while the piano and other instruments accompanied. At the climax, the dynamics of the song seemed to get

Can the rich buy justice Essay Example | Topics and Well Written Essays - 750 words

Can the rich buy justice - Essay Example Oscar Pistorius is 27 years old and is a former Olympian. He was accused of shooting his girlfriend, Reeva Steenkamp, with a gun four times through the door to the toilet room in his room in the middle of night. However, Pristorius pleaded not guilty of murder. He explained that he thought at the time that it was an intruder and he acted instantaneously as an attempt of self-defence. The trial was started on March 3 and up till now thirteen hearings have been conducted and the court has heard eighteen witnesses. The proceedings of the trials have been entirely broadcasted by the media and there has been an intense media hype associated with the case (CNN Staff). Although the explanation given by Pristorius is the only possible defense which could save him, according to legal experts he will have a tough time winning the case because of the evidences pointing out towards him. According to South Africa’s law, the most serious punishment which may be given is that of minimum 25 y ears imprisonment. According to neighbors, they heard a woman and man arguing and they also heard the sounds of a woman screaming before the sound of gun shot. This was in contradiction with the Mr. Pristorius statement who said that she was in bed when he heard the noises and went to investigate (Lyall). Oscar Pristorius with his fame and money has the advantage to utilize the best of facilities and amenities. He called four forensic scientists and also hired the help of a US forensic animation firm so that they could recreate the crime scene digitally. This would help in explaining his defense in a more effective and visual manner (Smith). Pristorius has gained the support of millions of fans through his emotional scenes depicted during the court proceedings and the display of disgust and intense emotion when the pictures of the crime scene were displayed. There were news that Team Pristorius had created a twitter account of

Demonstrative Communication Essay Example | Topics and Well Written Essays - 750 words - 1

Demonstrative Communication - Essay Example As we have defined communication, we can now delve into the definition of demonstrative communication. A very simple definition of demonstrative communication is the communication that takes place without any use of words. It includes both unwritten and non-verbal communication. There are many components of demonstrative communication such as tone of voice, posture, gesture and most importantly a person’s facial expressions among others. In order to better understand demonstrative communication let us consider an example. Let’s suppose that Simon is an entrepreneur and has a business that manufactures and sells tires. One day while sitting in the office he receives a call that his import shipment of rubber from India has been delayed by a week because of bad weather and heavy monsoon rains in India. This is bad news and makes Simon angry. To vent his anger, Simon slams the phone receiver down and begins pacing his office, his shoulders drooped and a worried look on his face. Paula, his assistant, has some more bad news. She nervously walks to Simon’s office and knocks. Simon gives her a menacing look and beckons her to come in. Paula then tells him that the lucrative deal, he had been working on since last week, with a major car dealer could not get through and the dealer had sent a letter refusing his proposal this morning. Simon clenches his fists and in a restrained and tired voice tells Paula to leave him alone and not disturb him for the day. The above is a perfect example of demonstrative communication. Although not directly visible, we can infer from Simons actions (the drooped shoulders, slamming of the receiver, pacing the office, clenched fists), facial expression (menacing look) and tone of voice (restrained and tired) that he is very angry and worried after hearing the bad news. Demonstrative communication can be used along with verbal communication to convey one’s message more clearly. For example when greeting someone a nd saying ‘Pleased to meet you’ will be less effective than not only saying ‘Pleased to meet you’ but also shaking the other person’s hand warmly and giving them a smile that really shows we are pleased to meet them. Demonstrative communication can only be effective if both the verbal and non-verbal message convey the same meaning. For example if some uninvited guest comes to our place then we may greet them jovially however our facial expression may show that we are unhappy on the guests’ arrival. Demonstrative communication also proves to be ineffective when there are different interpretations of non-verbal communication in different countries. For example in Sri Lanka shaking one’s head from side to side means a yes and nodding of the head means a no (totally opposite from the American meaning), in China biting one’s nails is considered disgusting while in America it is looked upon as a sign of insecurity and nervousness (Morr ison, Conaway & Borden 1972). Some examples of positive demonstrative communication include smiling, dressing neatly and jovial voice while negative demonstrative communication includes an aggressive tone and a frowning or scowling face. Demonstrative communication can be used to interpret other people’s behavior and using those interpretations to make our own responses. This involves observing and understanding people’s actions whilst they interact with you and then deciding on one’