Case Study on Custom Woodworking Company

Project Concept and Strategy

Woody had a number of vital aims to start the business. He was generally concerned with the growth of the entrepreneurship and the increase in sales volume. For instance, he has been in the business for a long time. This means that he had a passion for making a successful career in carpentry. Again, he objected to serve in the existing market with quality goods. He further provided a variety of goods ranging from cabinets to furniture. His developments were encouraging, as he obviously has developed a larger market during his entire working period. In addition, he gained a reputation in making attractive, highly designed products, and well-constructed products (Cleland & Ireland, 2006, pp. 22-25). At the end, Woods had a successful career as he recorded a rapid increase in the demands and sales of his products in the existing market.

The small –to- medium size project that deals with making furniture and cabinets for supplying the demand market started growing rapidly. Woody established it with the hope of accruing success in terms of sales. This was a vital factor in recording the success of the company since it made consistent research on the needs of the consumer (Lock, 2007, pp. 102-105). To begin with, consumer needs are the most important factors to be considered when starting a company. In essence, the consumers are the ones who are responsible for demand of goods in the market. If they do not demand the goods, the company is likely to plunge into losses owing to low sales of the products. It is, therefore, the best interests of the company, thus, the research should be done on consumers so that products could be tailored to attract a large number of them.

Project Scope

The woodwork company has established an experienced management to run the processions of the business. Experienced personnel are at a better position in recording good results as compared to inexperienced ones. For instance, the chairman and chief executive officer, Mr. Ron carpenter, is a very experienced person in terms of management. Commonly known as “Woody”, he is destined to spearhead the performance of the company to greater heights. In addition, he is seconded by his wife; Mrs. Emelia Carpenter who is an aggressive business woman who has a broad experience in the field of carpentry. Woody is an experienced cabinet maker, and he has worked in small furniture stores, which will add advantage to the business. He will encompass all the information he has gathered over the years and use it to augment performance of the business. This is a good idea designed to push the company into making lucrative profits. This is attributed to the fact that a focused management team is at better positions of making lucrative profits than any other management.

The scope of the business will be defined by making well-designed and constructed furniture to be supplied to the demand market. In this respect, the company will endeavor in making quality furniture to sell to the markets within the vicinity. In its growth, it will expand to other markets that are around since it has an objective of growing into a leading furniture producer.

Work Breakdown Structure

The company will involve a collection of raw materials from the saw-mill to the company yard. This will be a strategy that is aimed at reducing the costs incurred on manufacturing timber and other wood products. In essence, the company will avoid lumbering expenses which will incur large costs to the company. Firstly, Saw Mills has a variety of raw materials ranging from the soft woods and hard woods. Therefore, the company will have a wide range of the materials depending on the products that they are to make.

Secondly, the timber products will be given enough treatment to keep them for longer durations without any defects. This will result into quality furniture as the raw materials (timber) will not have twists. Immediately after the treatment, the designers of various products will embark on designing the variety of furniture that they need to make. The designs will focus on making furniture in accordance with the demand in the market (Cleland & Ireland, 2006, pp. 29-34). After the designs have been made, the carpenters will embark on constructing and making the various designs that have been appropriated. The carpenters will have to be very accurate and neat in their work as they will determine the end-result. In essence, the carpenters are a vital factor in construction of furniture who can affect market negatively or positively.

After the completion of construction, the furniture will be decorated to make them attractive. This will be a strategy to increase the market niche while continually advertising the products to the market. When the products are made in large numbers, they will be taken to the display room. The showroom is an avenue for calling customers to give their view on made products. This is an aspect of increasing the sales volume as more people make purchases after being contented with the product.

As a development strategy, the company will open branches in different regions and places. The availability of many branches and regions is an increase to the market concentration as the sales will have to increase. Similarly, opening of new branches in a company reduces the existing gap between the company and the market (Kerzner, 2009, p. 51). The customers will be nearer to the products and thus an increase in the urge to buy the products. Moreover, there will be a development strategy designed to increase the production capacity. The existing production capacity will be increased by 25 % of the current floor area. In this regard, the production will have increased to a better percentage than the current one. In addition, the company will fix air conditioners and dust-free paint in the manufacturing plant to reduce the atrocities that affect the workers. This will encourage the workers to commit themselves in working more.

Planning and Scheduling

Planning and management in an organization is vital in structuring a progressive performance. Consequently, the wood company will have stringent arrangements in making sure that they accrue success. To begin with, the project will involve qualified personnel in the construction and designing department. They will be responsible for the full management of ready-made furniture and make sure they are in the best shape. Similarly, they will be responsible for making sure that the furniture stock is sufficient enough for the demand in the market.

The marketing and sales department will be scheduled to explore new markets and enquire about the needs of the markets with regards to furniture and other related products. The marketing and sales departments are forecasted to make rapid and growing profits for the company. This is to make sure that the set goals are attained.

The design strategy will be scheduled for a number of departments in the company. For instance, there will be the marketing, finance, sales and the operations departments that will be used to deal with the clients who are in need of the products of the company. First, the finance departments will liase with the accounting department to schedule the pricing strategy and the prices of every type of furniture. Secondly, the marketing department will have to look for markets of the furniture in the region followed by the sales department which will complete the sale of products. Lastly, the operations department will deal with customer inquiries, customer complains and clarification of any questions.

Woodworking company
Figure 1. Woodworking company

Communication and People Management

The project of the furniture store will have a vertical management schedule. Similarly, the communication will follow the vertical channel in transferring information. The flow of information will start at the top and go to the lowest person in the workshop. However some instances will be controversial to this channel. For instance, when there is research on the market progress and client needs; the flow of information will be from the lower cadre to the top management (Kerzner, 2009, pp.34-40). This will be a fitting way of collecting data since the lowest personnel is likely to interact with many clients than the top management. It will be headed by Wood, who will be under the head office. He will be responsible for giving all the directions in the company with decision-support from reliable sources including the president, vice president and director. They will be further assisted by key personnel who include vice presidents for production, finance and personnel. In addition, there will be a controller who will take care of the decisions made by the vice presidents.

The organizations structure will be defined by:

The organizations structure
Figure 2. The organizations structure
The organizations structure
Figure 3. The organizations structure

Risk Identification and Management

These are the strategies that are used to prepare for calamities that can occur within the company. For instance, the company should prepare for risks involving breakdown of furniture in the store. Wood is not very strong and can, therefore, be broken while in the store. Similarly, furniture that has been in store for long tends to lose value and could be broken easily. Additionally, during transportation, accidents can plunge the company into losses (Lock, 2007, pp.12-15). It is therefore prudent for the company to insure itself against such accidents that can happen within the store and outside the store. Thirdly, there is the risk of fire that could break out in the wood company. As it is widely known, wood could be set ablaze by the machines in the wood company thereby causing a hazard. Therefore, the management should have succinct plans of reducing the effects that could be brought about by the afore-mentioned risks.

List of References

  1. Cleland, D. I., & Ireland L. R., 2006. Project management: strategic design and implementation. New York: McGraw-Hill Prof Med/Tech.
  2. Kerzner H., 2009. Project management: a systems approach to planning, scheduling, and controlling. New York: John Wiley & Sons.
  3. Lock, D., 2007. Project management. New York: Gower Publishing Ltd.

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