3) Adopting a Process Strategy
A process strategy is defined as an organisational framework that aids them in reaching targets and goals and transforming resources into products and services. The strategy can be defined as a particular procedure that determines the goals and provides detailed methods that derive positive outcomes (Krajewski et al., 2009; Burke et al., 2021).
Here the volume of process is medium to high, with increasing demand for customized furniture. With variety that is also high, due to customization requests and options given to customers. As per medium to high production volume and high variety because of the increasing customization demand, there is a need to adopt a flexible, modular process strategy. That is implementing a lean approach with scalable processes to deal with varied orders efficiently while maintaining quality for the growing customer base and expectations. The strategy needs to prioritize adaptable workflows and efficient resource management.
New Layout Design and Process Strategy
For the existing process, the upgrade options may include the flow layout type and the process strategy of mass customization.
Mixed Layout:
A mixed layout will be required with work cells for specialized tasks and a product-oriented layout for standardized processes. Mixed layouts can be observed in large stores that maintain open floor plans such that customers can browse there at their own pace. These layouts often have geometric shelves that display most of the inventory and the angular displays highlight more premium products (Pérez-Gosende et al., 2021). The mixed layout will provide flexibility while catering to both customized products and standard products effectively (LYi et al., 2021).
Process Strategy of Mass Customization:
Since XYZ furniture is growing massively, one might take the risk of mass customization as it balances high customization with efficient production techniques. The balance between flexibility, quality, customization and efficiency must be the main focus in competition. Implementing these strategies will enable XYZ Furniture to meet increasing demand while maintaining product quality. The combination of work cells and a product-oriented layout will improve operational efficiency, and mass customization will enable different customer needs to be met without compromising production efficiency (Kovacs, 2020).
Discussion
Solution for Optimizing Layout Design:
To optimize XYZ furniture’s layout design, one needs to focus on creating a balance between work cells and product-oriented layouts. These layouts are strategies to help create a product that is better than other products while also offering improvements over time so that the consumer tends to use the best option on the market. (Wang & Zhang, 2020; Gibson & Vanpelt, 2021). Currently, the workshop uses a linear layout for a product-oriented process, which according to Pourvaziri et al. (2021), is suitable for stages like cutting and assembly where tasks are standardized and repetitive. The issues emerge with various durations of processes, especially for the stages of sanding and painting, which causes bottlenecks and failures
Recommendations:
Work Cells:
Lay out work cells specialised for particular processes that need specific skill and flexibility, for example, sanding and painting. According to Slack et al. (2019), this procedure will reduce the interruptions in workflow ensuring each stage of production receives the critical attention and reducing delays. Work cells must be organized to provide varying degrees of customization or finishing and can accommodate multiple processes for such specialized applications. It should reduce work interruptions and bottlenecks by customizing workstations for tasks that require special attention, such as sanding and painting. Use linear workstations for steps such as cutting and assembly where the tasks are more standardized and repetitive, creating a product-oriented layout.
Product-Oriented Layout:
The company should maintain a linear layout for stages that are more standardized and predictable, for cutting and assembly. This layout supports smooth, sequential processing of items and reduces the possibility of wastage of time and resources. The product orientation is a tried business strategy utilized since the product development was less sophisticated, and the only focus was on creating high-quality products. Whereas Product research, product development, and product focus are three significant crucial processes in product orientation (Resta et al., 2015; Rahmanzadeh et al., 2019).
Redesign the workshop:
Change the current layout for the floor plan to incorporate the new work cells and product-oriented layout. Position the work cells strategically ensuring that the material flow is efficient and smooth with designated pathways for moving materials across the stages. This design will help in balancing the workload and enhancing the overall efficiency. Redesigning the workshop floor plan will minimize the backtracking and improved layout design can lead to more effective use of space and reduced cycle times.
Solution for Adopting a Process Strategy:
Given XYZ Furniture's medium to high volume and broad range of custom orders, the best process strategy is combining components of mass customization and batch processing. This strategy will help the organization deal with the popular demand for customization and standardization of production efficiently. Further, the organization should implement modular production hardware and utilize an adaptable IT framework to deal with different levels of customization. This will enhance the organization's capacity to effectively oversee different orders. The processes should be normalized and clear for both custom and standard products. The application of a project-based approach that gives flexibility to non-standard products and makes batch processing workflows for the greatest proficiency for standard products will be helpful.
