Woody 2000 - Project Management Case Study

Published: 2021-06-29 07:05:57
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Background
The Custom Woodworking Company is a small-to-medium sized custom furniture and cabinet making
company, with head-office and a spacious plant site at Industrial Estates, Someplace, BC. Its Chairman
and Chief Executive Officer is Ron Carpenter now in his late-sixties. His wife Mrs. Emelia Carpenter,
being an aggressive business woman and somewhat younger than her husband, now effectively runs the company.
Ron Carpenter is affectionately known to all as "Woody" and so the company is generally known as
"Woody's". Woody, after an apprenticeship as a cabinet maker, started his small furniture manufacturing business back in 1954 and he and his wife moved to their present location in 1959. The company quickly gained a reputation for attractively designed and well constructed furniture, using imported hardwoods and indigenous softwoods for its products. Woody's now produces custom furniture to order, several lines of furniture for wholesaler/retailers, and a number of variations of standard kitchen and bathroom cabinets, including units made to order.
Over the years the Carpenters continued to prosper and built up a loyal staff and work force. More
recently their son, John Carpenter, has joined the company's management after having obtained a
commerce degree at the local university. At John Carpenter's insistence, lured by longer production runs and higher and more consistent mark-ups, the company has moved into subcontract work supplying and installing counter-tops, cabinets and similar fixtures for new commercial construction. To date, Woody's has established a well-founded reputation for supplying millwork to the construction industry.

The Opportunity
In 1989 there was a mini-boom in commercial construction in south-western BC. With the possibility of
a major airport expansion, and free-trade opportunities south of the border, Bruce Sharpe persuaded
Woody's directors that they were well placed to expand their manufacturing business. Miles Faster,
regularly complaining that the company's production efficiency was being thwarted by lack of
manufacturing space, made a pitch to John Carpenter for moving to completely new and more modern
facilities. John Carpenter, with a vision of growth based on computer controlled automation, talked over
the idea with his father. Woody discussed it with his wife who in turn brought Kim Cashman and
Spencer Moneysworth into the debate.

Cashman and Moneysworth felt strongly that they should remain where they were, since there was spare
land on their property, even though not the most convenient for plant expansion. They argued that not
only would this avoid the costs of buying and selling property, but more importantly avoid the

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