Classics Cabinets Pty Ltd is a custom kitchen cabinet design and manufacturing company, it was founded in Springvale, Melbourne in 2001, and the two owners are brothers Chinh and Anh Chu . Chinh is a highly skilled cabinetmaker and his role in the company is now that of production and operations manager. Anh, on the other hand, is a qualified interior designer and because she has found interest in the financial and overall management of the business, she is the de facto general manager. This company's original customers are from the Vietnamese community in Melbourne's south-eastern suburbs, but along with the company's growing reputation, their customer base is becoming increasingly diverse. Due to the diversity of the customer base and the informal roles identified for the two owners, some problems of the company arise. This essay focuses on the following issues related to Classics Cabinets: the current manufacturing systems and processes used by the company, the effect of the new line of builders' kitchens on the company's operations, the daily operational decisions that Chinh Chu must make with the current operating conditions to maintain effective production and the impact that the transition to the production of builders' kitchens may have on the company's financial structure; all topics based on these four operational management concepts: process design, capacity management, project management, and demand management and forecasting. First, the current manufacturing processes and systems used by Classic Cabinets can be classified as project, job shop process, batch process, repetitive process, and continuous process (Gardiner 2006). Classic Cabinets was completely focused on bespoke kitchens, with the cli...... middle of paper ......gins, for this reason, many of the standard cabinet components were left in the factory in various stages of completion and they transformed the spacious production area into a factory clogged with partially completed jobs. The next problem is that the company's profits were not what they should have been, even though sales of custom kitchens remained stable and sales of the builders line were steadily increasing, it is still not possible to stop the increase in costs associated with standard builders' line and increased inventory costs of raw materials, process labor and finished products. The final issue is the improvement in delivery times for both custom and standard orders, and this has resulted in longer promised delivery times. Furthermore, more concisely, these three main problems can be summarized as one integrated problem namely capacity management.