Identifying activities that add value from the customer's perspective Wood- LO 2, 3, 4 point Furniture Manufacturing manufactures various lines of pine furniture. The plant is organized so that all similar functions are performed in one area, as shown in Exhibit 2-6. Most pieces of furniture are made in batches of 10 units.

Raw materials are ordered and stored in the raw materials storage area.

When an order is issued for a batch of production, the wood needed to com¬ plete that batch is withdrawn from the raw materials area and taken to the saw area. There the wood is sawed into the pieces that are required for the production lot.

The pieces are then transferred to the sanding and planning area where they are stored awaiting processing in that area. When the machines are free, any sanding or planning is done on all the pieces in the batch. Any pieces that are damaged by the planning or sanding are reordered from the saw area. The other pieces in the lot are set aside in a storage area when pieces have to be reordered from the saw area.

When all the pieces have been sanded or planed, the pieces are then transferred to the assembly area where they are placed in a large bin to await assembly. Pieces are withdrawn from the bin as assembly proceeds. Defective or missing pieces are returned to the saw or sand and plane area where they are remanufactured. As assembly proceeds or when assembly is completed, depending on the product, any required painting or staining is done in the painting area. Pieces to be stained or painted are transferred back and forth between the assembly and paint area on a trolley. There is a storage area in the paint department for pieces awaiting painting. Whenever assembly is halted to await pieces that have been sent for painting and staining, the rest of the pieces in that batch are put into the storage bin to await the return of the stained or painted pieces.

When assembly is completed, the product is checked by the quality in¬ spector. Any defective products are returned to the appropriate department for rework. When the product is approved, it is packaged and put into final stor¬ age to await an order by the customer.

REQUIRED

(a) Chart the process (i.e., specify from start to finish, the activities used) to make furniture in Woodpoint Furniture Manufacturing. Which activities do you think add value from the customer's perspective?

(b) What critical performance indicators would you use to evaluate the per¬ formance of this manufacturing operation?

LO 2, 3, 4