Crown Point Cabinetry

i think this Crown is different from that Crown in Melbourne...LOL. whatever, 2 samples as usual

SAMPLE 1

1. Conduct a SWOT analysis

Strengths

Crown Point Cabinetry was a respected and describable employer in the cabinet industry boasting inspired and motivated workforces.

The company was a relating large manufacturer.

On time and complete delivery.

Weakness

Poor management and employee relations

Inconsistency and too many changes in management systems

Less than 1% of cabinets were purchased direct from manufacturers.

Employees had no retirement benefits

Opportunities

More advertising of new design could spark new interest.

Keep up with the trends in what the customer is looking for, get internal design consultant to get a better idea of this trends and better understanding on what the market wants

Different approaches on business management were worked out.

Threats

Increase of backorders, would decline the customer satisfaction and may give them a poor reputation in the market

Crown Points faced an increasing competition from local cabinetmakers.

2. Outline the competitive strategy of Crown Point Cabinetry.

Team-based management is based on restructuring and transition. Brian introduced an open door policy toured the shop regularly, came to know all employees by name, and participated in many of the daily production team meetings. This strategy empowered employees with personal and management decision-making responsibility and then some former departments were converted. Into teams industry 12 people, meanwhile meeting were hold daily. Teams have been vested with the power to hire and fine members.

Besides Team-Based Management, the Crown Point Cabinetry also has other method to manage the company, like Backorder Penalty/ Reward System.

3. Construct the internal value chain for the company.

There are several steps to produce a production

Delivering the raw materials to Crown Point Cabinetry

The raw material (mainly maple, oak, pine, and other woods) was cut to make cabinet frames, doors, and boxes that will be use to produce the product for the company.

Each Kitchen cabinet, available in a variety of styles, was custom designed to exacting customer specification.

Each piece is hand sanded and finished with stains or specialty paints, so should work separately.

The final product was assembled, blanked wrapped, and shipped via furniture truck.

Direct to customer

Transport to supplier

4. Brian Stowell’s comment, (page 555 last paragraph) ‘…we were building a cabinet three or four times before it got out of the shop’ was problematic. Describe what he was referring to and how it was resolved.

He referees to the significant problem on poor in process quality control because of rebuilding the cabinet three or four times before it got out of the shop. To resolve this problem, he approaches “First-time quality”. Just like what he said: “I don’t want that money going out the door; I would rather give it to you. People are leaving here with no retirement benefits. It breaks my heart to see this happening. I want to be able to afford to give people these things. From now on, if you don’t care about first-time quality, there won’t be a job for you. If you do care, you’ll always have a job here.”

5. Evaluate Crown Point Cabinetry’s remuneration system (note: you can include in your discussion, but not limited to the issues surrounding team based management, gainsharing, backorder penalty/rewards, wage increases and retirement plan)

All the approaches establish to cover each stage of employees’ working life. Team based management should be controlled by the management. In the system a team based management approach was advocated that empowered employees with personnel and management decision making responsibility. In 1997 the company’s management proposed a program “gainsharing” for labour cost savings. But “gainsharing” was failure when it produces undesired results. After that they started backorder penalty/ reward system. A backorder required further shipment of missing parts and field installation of those parts. Penalties were applied if any backorders and rewards for no backorders to the employees. To use this kind of system, the company can make more closely relation with employees.

6. Describe the fundamental changes made by management. What other ways could have been explored by management to achieve the same results?

Sales and marketing was a fundamental change made by the management, such as team based management, gain sharing, penalty and reward system and increases the wages. There are also changes, for example basically they gave benefits to their employees by creating a nice work atmosphere and by retirement plans. To achieve the same results, the company can use balance scorecard.

7. How can Crown Point Cabinetry extract further productivity gains from an already inspired workforce?

They can start direct selling, but not dealer network. They did direct selling in 1994 after that the financial results have been solid. Sales have tripled between 1994 and 2001. In this way, the company extracts further productivity gains from an already inspired workforce.

8. What does the term ‘perquisite’ mean? (last paragraph, page 559)

Perquisite is extra reward methods for the company to provide to employees unless some brain and fired systems. For example, Crown Point Cabinetry has added various benefits for employees since 1993.

9. Check out Crown Point Cabinetry on www.crown-point.com. Any other information that you believe is relevant?

In the website, there isn’t any information is relevant to the business.

The main information on the website is about order online and online sale.

SAMPLE 2

1. SWOT analysis:


Strengths:

1. Crown Point Cabinetry was a respected and describable employer in the cabinet industry boasting inspired and motivated workforces.

2. CPC was a relating large manufacturer employing 85 employees.

3. CPC was an old company which was founded in 1979.

4. Around 1992, the revenues were growing substantially.

5. Investments had been made in new cutting and finishing equipment.

6. In 1994, teams had designed review sheets, or a scorecard which was used to increase salary and evaluate team member performance.

7. CP did well in on time and complete delivery.

8. Wages were raised twice in 2000 and 2001.

9. Everyone in the company was subject to the same rules.

10. As a tribute to CP safety record, the company today enjoys the lowest experience modes with this group.

11. CP has added numbers other benefits for employees since 1993.

12. Direct sales accounted for less than 25% of sales in 1994, rose to 50% in 1998 and reached 95% in 2001.

13. In process quality has improved dramatically, allowing for significant productivity gains and materials saving.

15. Base wage rates increased 25 fold.

Weaknesses:

1. Less than 1% of cabinets were purchased direct from manufacturers.

2. A large number of jobs opened up four or more times each year.

3. Poor relations rose between management and employees.

4. Poor in process quality control.

5. Employees had no retirement benefits.

6. An undesired result of the gain sharing system was animosity toward individuals who worked overtime.

7. Serving on the safety team became a necessary but sometimes unenviable part of working are Crown Point as team members sometimes agonized over decisions to fine friends who violated safety rules.

Opportunities:

1. Demand for cabinets followed residential construction industry trends.

2. Different approaches on business management were worked out.

Threats:

1. The U.S cabinet industry was highly fragmentary with more than 5000 manufactures supplying stock semi cabinets through multiple distributions channels.

2. Crown Points faced an increasing competition from local cabinetmakers.

2. Outline the competitive strategy of Crown Point Cabinetry.

External Competitive Strategy:

1) Team-based management is based on restructuring and transition. There are several significant actions to take, such as allowing employee to choose the suitable to stay in the company. This strategy empowered employees with personal and management decision-making responsibility and then some former departments were converted. Into teams industry 12 people, meanwhile meeting were hold daily. Teams have been vested with the power to hire and fine members.

2) Backorder penalty:

a) Reward system: $250 penalty was applied to every backorder initially. However, the amount reached $1ooo in order to reduce the number of backorder, and build good quality image among customers. Oppositely, if the team achieves the work without any backorder, lunches will be provided.

b) Safety team was set up to write rules and guidelines for work, and employees were empowered to remove others from the shop floor for safety violations. The safety team determines penalties, including dismissal for violations.

3. Construct the internal value chain for the company.

Internal value chain:

1) Designs: customer design- to satisfy customer specifically

2) Production: a) production floor (dealing with raw martial). b) hand sanded

3) Tasks sep to teams

4) Distribution

5) Assembly

4. Brian Stowell’s comment:

He referees to the significant problem on poor in process quality control. Because the unstated in monitoring and controlling during the production cycle, some cabinets have to be sent back to fix on reproduce again. In other words, it wastes money and time unnecessarily on these 3 or 4 times rework.


5. Evaluations on Crown Point remuneration system:

It seems that all the approaches establish to cover each stage of employees’ working life. Team based management should be controlled by the management. Totally, sometimes it is hare and inconvenient for teams to negotiate with each other, so at this time, the management should direct and give responded timely. Gain sharing has the failure, when it produces undesired results. Although Crown Point has several of remuneration systems, but there are still many chances for Crown Point to develop new system, as rewarding system, the company can make more closely relation with employees.

6. Fundamental charges description and other ways:

The decision right on whether keeping the employee or not is transferred to employee themselves, other than the management makes this decision. However, scorecard can tell the truth about the performances of employees, and then management can use the information provided by scorecards.

7. Crown Point extract further productivity gains from an already inspired workforce:

Crown Point can develop extra reward system to combine the performance of employees his/ her own benefit such as giving employee options to choose the type of reward (shares). And then they have to work better to increase the value of share.

8. The “term perquisite” meaning:

Perquisite is extra reward methods for the company to provide to employees unless some brain and fired systems. For example, annual company picnics, a box suite at a nearby urban sports, a company sponsored downhill popper in the lunch room, and continued and expanded daily breakfasts.