Topic
Pine Peaks Fine Furniture and Joinery
Instructions
Write an argumentative essay discussing the operational issues facing Pine Peaks Fine Furniture and Joinery. The essay should identify and discuss the operational aspects that are affecting the organization, paying attention where appropriate to any strategic implications. The essay should discuss the following issues with responses integrated within the essay.
- Current production process and layout used by Pine Peaks Fine Furniture and Joinery (technical analysis).
- The effect that the new contract with Camille Dubois has had on Pine Peaks Fine Furniture and Joinery’s operations (problem identification and specification).
- The daily operational decisions are required to be made under current operating conditions for the company’s operations to run effectively (day-to-day operational issues).
- The effect that the move to producing the standardized furniture pieces may have had on the company’s financial structure[1] (broader organizational issues caused by operational problems).
It should be noted that the situation at Pine Peaks Fine Furniture and Joinery is typical of growing businesses, and it is not a major disaster or rupture. The company is sound, but there are issues that need require speedy resolution.
[1] “Financial Structure” is a specific term relating mainly to balance sheet items in a company’s finances, particularly the way the firm is financed. If you do not understand this term, you will need to research its meaning.
Answer Preview
Pine Peaks Fine Furniture and Joinery’s new contract with Camille and the introduction of a new production line present different operational issues that require swift resolution. The process and layout do not seem to be adequate for the increasing inventory such as raw materials and finished products. In addition, the financial structure seems to disrupt the routine operational processes such as the production of standard furniture parts. While the profit margins remain in substantial positions, the inability to meet the target revenues implies that the company faces a risk of losing its capacity to meet the demand and sustain its production. This paper focuses on operational issues affecting Pine Peaks Fine Furniture and Joinery and the strategic implications on the production of standardized furniture components.
Word Count: 2300