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Assignment 4 - Chocktree & Sons
Assignment 4 - Chocktree & Sons
Assignment 4
Julian Cowper
Student number: 714102
Background
• Chocktree & Sons (C&S) produces high quality,
high class pottery
• C&S are well known for making a set for
Queen Victoria
• C&S has been maintained through the family
name (Chocktree) since established
• C&S managed to survire through the Great
Depression as well as 2 world wars
– Big loss in the market as well as designers
• Recently adopted an automated finishing line
Problems C&S want resolved
1. Recommendations for improvements in
profitability gained from existing operations
2. Indicate which other markets they could
serve with existing resources
3. Other opportunities for future growth (will
require additional capital in long term)
Problems faced within C&S
• Personnel complement has been fairly static
– Hard to acquire new unskilled workers (better wages in other
industries)
• Reason for automation of finishing processes
– Management of C&S expected to be passed down family
lineage
• Samuel Chocktree (Promotions Manager) is next in line as Technical
Director but is not “educated enough”
• Harold Williams (Marketing Director) is expected to fill gap between
Charles Chocktree (Techincal Director) and Samuel Chocktree
• Performance in the market has stagnated
– C&S relies largely on their reputation for business
– Sir Charles wants to improve production whereas his son,
Samuel, wants to look at marketing and possibly venture into
mass-produced items
Problematique
• C&S does not have a clear strategic plan in
place to improve their performance
• There is very little turnover or upskilling of
staff
Naïve picture
Ceramics
Family run High end
company quality
Upper
Low level/ no class/ high
automation end
market
Passing on
of Chocktree International
knowledge market
/ skill & Sons
Crafting
expertise
Brand
(forming
identity
and
painting)
Slow
Hand
productio
crafted
n rate High
quality
materials
No
Rich Picture Training young,
unskilled
Family
oriented/
artisans run Materials
Current
facility
Other
industries
Harold
Formers Williams
Sir Charles
Chocktree
Decorators
Price
Production
rate
Chocktree
& Sons
Design
sets
High-end ceramics Automation
Scraps/
rejects
Restaurants Brand
reputation
Samuel
Chocktree
New
Buyer’s
International brand
market
New
facility
Mass-produced ceramics
Hierarchy
Environment
• Ceramics • Family
• Production/manufacturing
• High end
• Internationally
• Automation
Ishikawa Diagram
Production Market
- Slow rate of production - Diminishing market for high end
- Low level of automation ceramics
- High expenses for raw materials - High cost for items
- Number of scraps / high level of - High distribution costs (international
perfection market)
- Number of artisans - Waiting period between ordering
- Irregularity of automated line and receiving
Drop in turnover
performance
Business decisions
- Family run business
- Not adopting new market trends
- Turnover of staff rate
- Amount of upskilling
- Communication (horizontally and
vertically)
Root definition (CAPETOWN) –
As is
C – wealthy ceramic buyers (individuals and organisations), fine
dining restaurants
A – Chocktree & Sons, Formers, Decorators, Marketing
Department, Technical Department
P–
• 6 items/hr produced
• 11,4% rejection rate
• 30 000 items/year
• 78% export
• 67% large orders, 33% small orders
• £0,5m/annum turnover
• £0,026m/annum production losses due to scrap/rejects
• £0,053m/annum raw material cost
E – Ceramics, production/manufacturing, high end,
internationally, exclusive market
T – To produce high-end ceramics for customers
O – Sir Charles Chocktree
W – Only producing a small number of high-end
ceramic sets to keep C&S in the market for high-
end buyers
N – Open, negative, purposeful, HAS, hierarchical,
functional
Root definition (CAPETOWN) – To be
C – wealthy ceramic buyers (individuals and organisations), fine dining
restaurants, lower-class buyers, sit down restaurants,
A – Chocktree & Sons, Formers, Decorators, Marketing Department, Technical
Department, Samuel Chocktree, younger artisans,
P–
• 6 items/hr produced
• 11,4% 0% rejection rate
• 30 000 items/year
• 78% export
• 67% large orders, 33% small orders
• £0,5m/annum turnover
• £0,026m/annum production losses due to scrap/rejects
• £0,053m/annum raw material cost
• 5 artisans trained per year
• 25% production automated
• Value sold in mass-produced market
• Value sold across all buyer’s markets
• Increase in global brand reputation
E – Ceramics, production/manufacturing, high end,
internationally, automation, exclusive market, inclusive
market, systemic thinking, automation, middle class
T – To produce high-end and mass-produced ceramic
pieces for a greater buyer’s market
O – Harold Williams
W – Make use of the knowledge and brand name to
widen the company’s products to penetrate more
markets while still producing high-end ceramics for
more different kinds of buyers
N - Open, negative, purposeful, HAS, hierarchical,
functional, adaptable/ dynamic, technological, systemic
Speed Temp
Teguchi Method – Pieces Fired
Pieces Fired 0.2 0.3 0.4 0.5 0.6 0.7 1000 1100 1200 1250 1300
1000 75 75 75
1100 67 67 67
0.2 1200 58 58 58
1250 51 51 51
1300 44 44 44
1000 49 49 49
1100 59 59 59
0.3 1200 40 40 40
1250 60 60 60
1300 82 82 82
1000 68 68 68
1100 79 79 79
0.4 1200 30 30 30
1250 99 99 99
1300 63 63 63
1000 56 56 56
1100 38 38 38
0.5 1200 87 87 87
1250 76 76 76
1300 70 70 70
1000 42 42 42
1100 52 52 52
0.6 1200 27 27 27
1250 44 44 44
1300 48 48 48
1000 33 33 33
1100 50 50 50
0.7 1200 43 43 43
1250 32 32 32
1300 30 30 30
AVERAGE 59 58 67.8 65.4 42.6 37.6 53.83333 57.5 47.5 60.33333 56.16667
Speed Temp
Teguchi Method - Rejects
Rejects 0.2 0.3 0.4 0.5 0.6 0.7 1000 1100 1200 1250 1300
1000 8 8 8
1100 7 7 7
0.2 1200 6 6 6
1250 5 5 5
1300 5 5 5
1000 5 5 5
1100 6 6 6
0.3 1200 4 4 4
1250 6 6 6
1300 9 9 9
1000 7 7 7
1100 8 8 8
0.4 1200 3 3 3
1250 10 10 10
1300 7 7 7
1000 6 6 6
1100 4 4 4
0.5 1200 9 9 9
1250 8 8 8
1300 8 8 8
1000 5 5 5
1100 6 6 6
0.6 1200 3 3 3
1250 5 5 5
1300 6 6 6
1000 4 4 4
1100 6 6 6
0.7 1200 5 5 5
1250 4 4 4
1300 4 4 4
AVERAGE 6.2 6.0 7.0 7.0 5.0 4.6 5.8 6.2 5.0 6.3 6.5
Pieces fired Teguchi Results
70
65
60
55
50
45
40
35
30
0.1 0.2 0.3 0.4 0.5 0.6 0.7 1000
0.8 1050 1100 1150 1200 1250 1300 1350
7.5
Rejects
7.0
6.5
6.0
5.5
5.0
4.5
4.0
0.1 0.2 0.3 0.4 0.5 0.6 0.7 1000
0.8 1050 1100 1150 1200 1250 1300 1350
Rejects:
• Conveyor speed increases, number of pieced decreases
• Temperature increases, number of pieced increases
Additional notes:
• For conveyor speeds of 0.4 and 0.5 feet/hour the number of pieces
fired increases considerably but so does the number of rejects
• For a kiln temperature of 1200°C the number of pieces fired
decreases considerably but so does the number of rejects
Teguchi Conclusion
Assumption: Production rate – 30 000 items/year = 122
items/day (245 work days/year) = 15 items/hour (8 hours/day)
Rich and wealthy buyers High-end ceramics (high Price of materials Harold Williams
price on item)
Hand crafted
Mass produced
Automation
“How” Affinity Diagram
Technology Training Products Management
(A) Use of more (B) Upskilling younger (C) Move into mass- (F) Change of business
automation on artisans produced market management from
production line family oriented
(quality checking) (D) Use
cheaper/recyclable
materials to reduce
costs (to company and
buyer)
A 1 1 5 10 1 18 23.9
B 1 10 5 5 1 22 29.3
F 1 1 1 5 10 18 23.9
1 = equal
5 = significantly more important
10 = very significantly more important
1/5 = significantly less important
1/10 = very significantly less important
“How” Prioritisation
ID How Score (%)
B Upskilling younger artisans 29.3
A Use of more automation on production line (quality 23.9
checking)
F Change of business management from family oriented 23.9
D Use cheaper/recyclable materials to reduce costs (to 15.4
company and buyer)
C Move into mass-produced market 5.5
E Allow for more sets to be available 2.0
Tree Diagram for Bursary/ education
programme
Linked to an artistic
school
Transfer knowledge
from experienced to
inexperienced
Upskilling young
Use current artisans
artisans Do it while on the
job
Increase salaries
Make it favourable
to become an
artesian Improve work
conditions
Adapting to new
artistic trends
“How” Recommendations
How Details
Upskilling younger artisans See Tree Diagram
Use of more automation Automated scanning/testing
on production line (quality Test fewer items
checking)
Change of business Replace Sir Charles Chocktree with Harold Williams or anyone
management from family suitable to fulfil position duties
oriented Change company mentality to allow for change from historical ways
Use cheaper/recyclable Source cheaper materials/recyclable that are just as good quality
materials to reduce costs
(to company and buyer)
Move into mass-produced Create separate facility to focus on mass production (no need for
market highly skilled artisans)
Create a new, separate brand for mass-produced items (no loss in
reputational credibility on C&S name)
Allow for more sets to be Allow artisans to create their own unique pieces
available Increase number of artisans (requires upskilling of young artisans)