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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 Europes 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 Vs profile for the companys 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 dont 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.