Chapter-1

Case study: Design house partnership at Concept Design Services

Why is operations management important in CDS?

Operations management is important in CDS if they are to continue being one of Europe’s most

profitable home ware businesses. As with any other company, CDS objective is to add value to

their final product while using its resources effectively and efficiently through its internal

processes. The company has successfully been able to apply the technology used in the

aerospace sector onto home ware items, through the mastering of injection moulding machines.

Moreover, the company has expanded into a premium home ware product market, integrating

new functions within its operations, such as forming partnerships with reputable designers and

increasing the volume and complexity of its production.

Draw a 4 V’s profile for the company’s products/services

Volume: High. Although the case study does not specify the amount of production, it can be

deduced that production volume is high as it has increased 600% since the acquisition of new

large multi-cavity moulds. Another indication of high volume production is the fact that CDS

decided to subcontract their Focus line to other moulding companies, so they could focus on the

production of their premium line (Concept).

Variety: High. CDS market is a highly competitive one, in which design innovation determines

the longevity of the firm. CDS capacity of developing products that are in fashion and moreover,

its adaptability to change as fashion changes is key to the survival of the firm.

Variation: High. For the same reason as with variety, CDS is forced to continuously produce

innovative designs that would keep their customers interested and therefore keep demand high.

Visibility: Mixed high and low. There is the visible part of the operation that is when the final

products are

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What would you recommend to the company if you were asked to advice on improving its operations?

There are 2 areas that CDS needs to improve: the relationship between its designers and other

parts of the company (such as the manufacturing and distribution) and a better forecasting of

sales. For the first challenge, it seem that the designers don’t get to spend enough or any time on

the ‘floor’ of the company, that is, they do not have an in depth understanding of the

manufacturing processes and the way they are affected by their decision making. Perhaps if they

could spend some time doing ‘cross training’ they would get a real idea of the manufacturing

processes and could implement this knowledge into their designing activities, in other words,

both departments should have a better collaboration.

The second challenge is improving the sales forecast. Once again there seems to be a problem of

collaboration between the marketing and operations departments of the company. As above, it

could be suggested that both department managers and key personnel should cross train in order

to understand the ‘way they do things’ and the reasons behind them.

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