Thicketwood Case

After all the examinations and projections of Operation analysis, and the possible alternative for Thicketwood, the second alternative, to introduce the used CNC from TDL products Co. will be the best alternative that Thicketwood would better take to achieve the object that meet the upcoming year's forecasted demand of 2,000 kitchen cabinets. Because there are many more advantages in this alternative and it should be mentioned that to introduce a technical machine is a good chance to earn more profit with less labor cost and with much more newer technology. Compared the new CNC with the used one, as to reach the object of quantity, the used CNC has much more advantages and trustiness while the new CNC may has more risk. And used CNC's payback is much shorter than the new one. This alternative can make Thicketwood much stronger in production and powerful brand in the market compared with other competitors.

In the short term, the company should hire more part-time workers to do the rooting line. Because of the used CNC purchased, it is necessary to train the workers to adapt themselves quickly and handle the equipment. It is hard to avoid the numerous cost associated with implementing the new process because of lack of experience in the new work-line. So it is important for the company to ensure the high quality and control the breakage to avoid the additional cost.

In the long term, after the company has a more strategic system, the cost for making cabinets will decrease dramatically and the company will benefit a lot from the investment in machines. It is important to assign the maintenance worker and allocate the workers' time correctly and it is necessary to improve the management. After the company has enough experience in the new cabinet manufacturing line, Thicketwood would be a sound kitchen cabinet manufacturer.