AbbasAsfia-IP4 - Centennial College ACCT 112

To: Darren Helton From: CPA Re: Heritage Cabinets Task 1- SWOT Analysis Strengths  Most of HCI’s employees have been with the company for more than five years which means employee retention is good  Located clos ...

To: Darren Helton From: CPA Re: Heritage Cabinets Task 1- SWOT Analysis Strengths  Most of HCI’s employees have been with the company for more than five years which means employee retention is good  Located close to sawmills and purchased enough quality lumber from these suppliers Weaknesses  HCI struggled to meet production deadlines in 2020 as it took longer to manufacture cabinets  Assemblers have to spend too much time searching for right hardware  Cabinets require specific hardware which is small gets lost in storage bins  Increasing number of pieces are sent back to rework due to lack of maintenance of older cutting machines  Raw materials and work in progress are often sitting on factory floor between stages and employees found it difficult to manoeuvre  Multiple supervisors initiate order for materials which results in excess inventory Opportunities  Low interest rates and declining unemployment over five years led to increased spending means more house purchases and more contracts for HCI to increase revenue  Cabinets with improved amenities as charging ports will increase growth  It is difficult to step into the existing manufacture network but once HCI can establish a network, they can generate a lot of business Threats  Competition in industry increased as many businesses are importing from overseas  Imported cabinets are priced lower which increases competition whereas Canadian manufactured are priced higher  Price of lumber is constantly increasing which may increase costs As per the SWOT analysis, there are many weaknesses in HCI’s operations which need to be rectified to improve efficiency. The improvements will result in betterment of operations for manufacturing Task 2 – Manufacturing issues and related to lean management The following issues are related to efficiency Weaknesses: I. Assemblers have to spend too much time searching for