Question

Criticize the Sandcone Theory of operations performance objectives. If you are a global furniture supplier, how will you rank the five performance objectives, and discuss reasons for the ranking.

Answer 1

Answer :

The Sandcone theory demonstrated that a company requires an organized advance inefficiency, which is the innermost layer of a cone, which is the second layer, versatility as a third, and the price that includes all other cone layers, to obtain the best possible understanding. the cone model While the model has some relevance given that all the factors required for competitiveness are taken into consideration, the fact that every factor has a specific weight does not show the same correlation within the company. The main assumption of this model is that manufacturing output is cumulative, incremental, and dependent on quality. The model implicit supposition is that the indirect effects of product quality and consequently cost efficiency are greater than direct effects in the same dimensions of performance. The sand cone model was not empirically tested for direct and indirect effects or the sequence of effects despite its frequent application. Of course, costs will always be the highest consideration for every business, even if it is a differentiating model but the capabilities are not built over time as a result of globalization and the state of the art technology, rather, the quality and flexibility are at the forefront in terms of competitiveness. The majority of companies establish consistency over time as the final layer, while quality is the key factor, in particular for both brands. The analysis of service delivery is still significant, but a part of the delivery is now considered. Improving the reliability of the production system should also be paid attention to in this theory.

The five performance objectives of the furniture supplier are cost, speed, quality, dependability, and Flexibility.My ranking of the performance objectives is as per the below order.

1. Quality: The capability to produce under blueprint and without error. Quality is the most important factor in the furniture industry. Product ranges and quality should fit in consumers' criteria. Quality products contribute to customer satisfaction and loyalty and reduce the risk and costs of faulty replacement. Through gaining certification with a recognized quality standard, businesses may develop a reputation for quality.

2. Cost: The main objective of furniture producers is to reduce costs, which help the business to survive on the market. Minimum manpower on the market is required to produce just the required products to reduce the costs of the products manufactured by the company. Lean management requires efficient procedures for the manufacture of goods that avoid plant waste.

3.Speed: The ability to do things quickly to meet customer requirements and thus offer short lead times for a customer to order a product or service and receiving it. To understand the usefulness of speed to market for companies, one can understand how reduced market speeds will harm: a decreased pace on the market gives the competitive advantage when it comes to innovation, enabling customers to be reached with new goods, services, or promotions before you. Their goods often contribute to greater brand awareness and perceived value in furniture.

4. Flexibility: Small and incremental changes also contribute to efficiency improvement in manufacturing processes. The Furniture industry has minimized resource use and improved the quality of the manufactured products for customers to achieve high-efficiency rates. The ability to change the mix of different products or services produced is important for the furniture industry. This is the basic way by which a consistent and standardized manufacturing process must be performed to contribute to a growth in the production of the enterprise.

5.Dependability: The capacity to deliver products and services following agreements made to customers. The analysis reveals that trustworthiness is a key factor in customer satisfaction and loyalty. To gain competitive advantage and then contribute to a lasting competitiveness advantage, furniture companies should thus concentrate more on improving the trust of their services.

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