Management of Environmental Quality

Question: Discuss about the Management of Environmental Quality. Answer: Introduction This essay deals a fictional company called Hawkesbury Cabinets located in Mulgrave, Sydney. The factory primarily focuses on the custom made and standardised kitchen cabinets to serve the growing Chinese population in the locale. As the reputation of the company grew the owners found to include more diversity in their products. However, it should be noticed that the factory lacks the infrastructure, human resources and spaces required to support the new line of builders kitchen. In this context, the following essay evaluates the factors that may play significant roles in upholding the operational and production issues faced by the company. Identification of Operational issues In the given case study, Fung is a qualified master cabinet who has taken over the duties of operational manager whereas; his sister Mei has taken up the post of general manager. The company has chosen the fourth largest industry in the country. According to Bildsten, Bjrnfot, Sandberg (2011), the value-driven custom cabinet business is more profitable in the recent markets. The central characteristic of their trade was that both the directors understood soundly that by gratifying their regulars and upholding an appropriate supply and demand chain they could maintain their trade as it should be and conquer the best position in the marketplace with an elevated profit margin (Basaran, 2012). As time passed, the companys repute and sale developed and quite a few low-amount deals were taken up to supply small-scale builders with standardized high-class kitchen cabinetry. With the incoming of these small-amount deals, the firm began developing a limited selection of kitchen cabinets in l ittle shipments. Shipment sizes ranged from singular kitchen cabinets to up to five cabinets of the same configuration. It resulted in modifications of the pricing structure and the logistics operations. The custom designed kitchens have continued to account for company sales; on the contrary, the builder's kitchen is also important. The client builder has foisted stringent deliveries along with some price sensitivity issues as opposed to custom-made kitchen cabinets buyers. As contradicted by Tang Musa (2011), the supply chain management theory as provided above is not devoid of risks. In the case study, the company has opted for custom-made kitchens and neglected the issues concerning the manufacturing and delivery of the standardised kitchens. It is to be noted that both types of kitchen cabinets have to compete for the workspace, times and artisans. Gupta Boyd (2008) have suggested the theory of constraints can be linked with the theories of operational management. The authors have argued that in some cases, the constraints and the core concepts of operational management may be linked. In this case study, the company fails to imbibe the theory of constraints. This particular theory suggests avoiding perils of local optimisation as well as to reach the functional boundaries by introducing new insights. However, the factory has a variety of gears assembled as one. Sawing blades and cutting platforms are in an seperate segment, routers and molders in a seperate one, even as lathes and some infrequently used apparatus are set aside from the job station in their seperate segment. There is additionally quite a small number of meeting locations positioned advantageously all over the unit. Polishing and finishing are taken care of in an atmospherically controlled division towards the back of the complex. The owners have consistently maintained the high quality of the machines nonetheless failed in proper usage as both the custom made and the standardised cabinet s require competition. As opined by Boxall Purcell (2011), strategic management and the human resource management are linked by application of proper management that helps in developing business strategies. This parameter lacks in the company. Although, custom-made kitchens are bringing in higher profits, however, neglecting the standard kitchens have pointed out failed strategies in operational management. Vidalakis, Tookey Sommerville (2011) has suggested following the logistic approach. The author further pointed out that logistic application is mandatory in the construction businesses such as in manufacturing business of the said company. Nonetheless, the company does not follow this approach and is faced with financial problems, which are elaborately discussed below. Mei Chen was handling the reviewing and development analysis when she noticed that the business has stretched out significantly. At first, they were just catering to the local Chinese population. However, with a boost in their repute, their company extended and the customer base became wider and diversified. They pronged out in standardized kitchen cabinets as well in addition to the customized options, and began generating more returns. Customized kitchen cabinets trade persisted to be sturdy and steady. As contrary to Mei's beliefs that the company has earned more profits regarding increased sales of the custom made kitchens as well as builder's line, the accountant has other arguments. The accountant pointed out that with the sakes, even the costs related to the standards builder's line kitchens are increasing as well. The accountant has also notified the rising cost associated with the builders' line. The builders line cabinets were left behind because it was found that the customized cabinets were actually bringing in more profit for the organization. As an outcome, the builders line cabinet components clogged up factory space and also exhausted the warehousing space taken up on rent. It resulted in the factory being in a complete mess, far away from the spacious and organized unit it was before. Further, the organization incurred financial loss for these increased expenses of warehousing (Sayem, Islam Khan, 2014). Another fear was the surplus time employed for lead generation f rom both standardized and customized cabinet markets. Setback in lead generation led to postponement in delivery. On one side, the works were trapped at the plant and on the other hand, orders were on an inactive mode. With the blocking up of factory space and the operations structure pushing for more production, expansion of the manufacturing unit became impossible. Looking at such conditions both the founders decided to become more involved in and handle the standardized kitchen cabinet contracts acquired from the builders, and keep an eye on the entire operations of the firm. As opined by Pero et al. (2010), the supply chain management and the innovativeness of introducing new ideas or product launches are related to one another. However, in this case study, the company fails to apply the variables that link the supply chain management to that of new product launches and innovation. Parry, Mills Turner (2010) have applied the core competence theory to ensure implementation of the two tools such as market analysis and financial modeling in their businesses. However, in the case study, it is evident that the company depicted lacks the utilisation of the said tools. Shifting the business entirely in accordance to increased sale of kitchen cabinets has rocked the company. Profit margin would decrease simultaneously to increased equipment cost as well as labour cost. Strategies for expansion therefore have failed due to inadequate vision and incorporation of the above factors. Conclusion The conclusion is drawn on the fact that lacking of operational management, and inadequate vision, can be cited as chief reasons that have procured negative impacts on the company. The current production equipment and processes acquired by the company are evaluated and analysed based on the various theories of operations management. The company has followed some theories while neglecting other which have drastic effects on the production processes. The problem statement is identified next which discusses the problems the company faces. The last part has analysed the financial problems that have cropped up due to the inefficiency of the owners in handling the operation management. References Basaran, B. (2012). 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