Tharp Cabinet Corp 2


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  • jack
  • jack
  • jack
  • seanTalk about reorder 4 times a week for raw wood and how they renegotiate every 3 months and how they buy based on the customers pull/ how much wood they used the day before
  • sean
  • matt
  • matt
  • matt
  • MattTalk about the flow of materials through their plant
  • matt
  • Jerry
  • Matt
  • sean
  • sean
  • seanCurrent is buying 30% of doorsRec. #1 is making 100% of doorsThis graph may need adjusting
  • MattTalk about the flow of materials through their plant
  • jerry
  • jack
  • jack
  • Tharp Cabinet Corp 2

    1. 1. THARP CABINET CORP.EXPERIENTIAL FIELD PROJECT BYJJSM: Matt Bender, Sean Whitney, Jerry Kinzie, Jack Liggett
    2. 2. ABOUT THARPFormed in 1971Tharp designs, manufactures, delivers, and installs custom cabinetry in cities throughout Colorado and Wyoming Denver, Fort Collins, Colorado Springs, Cheyenne, and the mountain communities of Winter Park, Steamboat Springs, Vail, and Breckenridge
    3. 3. THARP’S SUPPLY CHAIN OVERVIEWPurchase raw material from 2 main wood suppliersAll production is based on the pull of customersMaterials flow through production in 16 daysAssembly and Delivery take 6 days total lead time = 22 daysDelivery and Installation of products
    5. 5. KEY MATERIALS PURCHASING PARTNERS2 wood suppliers for the 11 types of wood offered Hardwoods Packston1 main door supplier Decorative40+ suppliers for other production essentialsPull Purchasing
    6. 6. SALES AND CUSTOMER ORIENTATIONIn-house showroom and sales staffUse a Computer Aided Design (CAD) system to design full cabinet layout with customerCustomers can view their order progress all the way through production
    7. 7. PRODUCTION STATISTICSTharp has a 22 day lead time on fully customized cabinets Shortest is the industryMake cabinets in: 11 different woods Each wood can be stained 9 different ways, 7 painted colors, and 8 “colored stain and glaze” styles 28 different style doors to complete the cabinets They also offer the option of “distressed” wood So if your counting that’s 14,784 different cabinets that Tharp can custom build to any specific size Tharp also offers to match any color or stain you already have installed for a small fee
    8. 8. FACTOR SPECIFICATIONSOnly 1 factory/warehouse, located in Loveland (middle of major markets)At capacity, one 8 hour shift can process 14,000 board feet Maintain Quality: 7 step hand sandingprocess43,504 total sq. ft. of production areaA custom built Enterprise Recourse Planning system tracks each order Customers can view progress online Quality control: managers must sign off on every piece of wood before sending it on to next department
    9. 9. PRODUCTIONTry to keep the process as straight-lined and lean as possibleFlows from: Cut Facility Door Facility Cabinet Backs AssemblyCabinets are held, unassembled, until customer is ready to install them30% of waste is recycled by Tharp the rest is recycled as sawdust by an outside company
    10. 10. Flow of Materials Recycling UnitAreas with 2 levelsEngineers’ Offices
    11. 11. SCM PRINCIPLES PRACTICED IN PRODUCTIONLEAN OTHER PRINCIPLESFocus and Improve flow Systems thinking of through production with use of single Cut production in total Sheet Minimize inventoryMaximize Value-Added by working with time suppliers toUse the Pull of Customers to minimize lead- perfectly forecast timeConstant improvement Use Quality Control processCleanliness
    12. 12. DELIVERY AND INSTALLATIONCustomers have the option to deliver and install the cabinets themselves Most General Contractors choose this option (about 20% of total sales)Tharp does all their own Logistics Use delivery trucks driven by installation teams to deliver products anywhere within 200 milesMinimizes waste, saves money, and promotes sustainable business practices by wrapping their products for protection instead of boxing them
    13. 13. RECOMMENDATIONS 1.) Purchase the 2.) Add space to the 3.) Build a larger necessary main production warehouse to holdequipment to make facility so that it can fully assembledall cuts necessary be better straight- orders and achieve for all doors. lined on one floor. full truckload deliveries.
    14. 14. NEW DOOR FACILITYNeeds about $1.6 million of doors annually All bought from Decorative, in California, until 2009Decided to build their own new door facility in 2009 Shortened lead time by 2 days Saved 25% of all door costsStill order 30% of doors from Decorative because Tharp lacks the technology to make certain cuts
    15. 15. RECOMMENDATION #1: DOORSTharp should invest in new technology so that they can produce all their doors In-house Make-Buy Analysis No Lead Time No Up-Stream flow from accidentally damaged doors
    16. 16. MAKE/BUY ANALYSIS180000016000001400000 $1,320,000.00 $1,200,000.001200000 Doors Made ($)1000000 Doors Bought ($) 800000 600000 Total Annual Cost of Doors 400000 200000 0 Current Recommendation #1
    17. 17. Areas with 2 levelsEngineers’ OfficesFork Lifts
    18. 18. RECOMMENDATION #2: PRODUCTION FACILITYCurrent facility is spread out over multiple floors in the factory.Put all production on one floor in a straight-lined path for efficiency No worries about the safety of forklifts Decrease time moving materials between departments
    19. 19. STORAGE FACILITY ISSUESArea for storing assembled cabinets is very smallForced to store cabinets unassembled until customer is ready for deliveryAssembly then adds a week onto delivery timeBackups when multiple customers are ready for delivery during the same week
    20. 20. RECOMMENDATION #3: STORAGE FACILITYTharp should build a new Storage FacilityShorter lead time on deliveriesReduces bottleneck during assembly phaseReduces shipment delays during weeks they have multiple orders
    21. 21. CONCLUSIONSAlthough our recommendations require an initial investment, Tharp Cabinets would benefit financially in the long run.
    22. 22. QUESTIONS?