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Chad's Creative Concepts

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Submitted By doug1215
Words 290
Pages 2
To: Chad Thomas Founder Chad's Creative Concepts
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Subject: Chad's Creative Concepts
Date: Jan. 07, 2015

Chad's Creative Concepts is a small custom furniture manufacturing company that has earned a reputation for innovative designs and excellent quality by focusing production on specialty designed furniture. Chad's Creative Concepts has grown substantially and has caused significant problems between standardized furniture and specialty designed furniture production. The problems concern external operations and internal operations of manufacturing.

Chad's Creative Concepts has to set priorities to schedule different orders. Orders for low running and high running furniture pieces are being accepted because sales have increased. Chad's Creative Concepts has not increased the amount of equipment or capacity needed to handle the business growth. Low running and high running furniture pieces are now competing for the same manufacturing capacity. Chad's Creative Concepts has to emphasize the importance of on time delivery and manufacturing costs. Low running furniture pieces and high running furniture piece have a different set of priorities. Sales and marketing have not considered the conflict between dedicating equipment to standardized pieces and specialty equipment for custom pieces.

Producing standard furniture pieces has created significant growth for the company. The growth has also caused the cost of inventory and operational costs to increase. This has significantly lowered profit margins. The concern has been placed on manufacturing to reduce costs and increase production.

A pre-established plan should have been in place to control growth for Chad's Creative Concepts. The company has “outgrown” its manufacturing capabilities. The current limitations on manufacturing and the increase in sales growth may be catastrophic for

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