Economics and Lead Time

Topics: Economics, Laborer Pages: 4 (955 words) Published: January 9, 2012


Submitted to: Submitted by: Dr. P. K. Dash Abhinav Anand Operations Management PGDM-BHU010

Case facts about FoldeRite Furniture:-
* Established in 1987
* Throughout 1990s company grew organically.
* 1999-2006 annual growth rate 3.5%. (More than market growth rate) but one competitor grew by 6% annually. * In 2006 company’s performance was very bad due to following concluded reasons- * Loss of productivity and yields caused by high labor turnover. * Cost of raw materials was increasing

* Increasing proportion of unskilled labor.
* Continuous acquisition of small firms which distracted management from their main issues. * This thing also generated liquidity shortage
* These things resulted in reduced margins as well as increased lead time from 4 to 6-8 weeks. Major policies that company adopted after change in management:- * New CEO marshal Epstein from a major consumer goods company was appointed. * Manufacturing VP Jose Ramose was hired.

* Together they decided 4 major goals:-
* Continued innovation in both products and processes,
* Customer responsiveness: producing high quality products that fulfilled market needs, and providing quick service, * Lean manufacturing, and
* Retention of a well-trained, stable, and productive workforce, with reduced turnover. * Reduced no of products to provide high quality products. Consequences:-
* All these helped in reduction of lead time.
* They had a $60M revenues and profitable despite recession

Ques-(01) what are the Manufacturing Options available with Mr. Martin Kelsey? Ans. The objective of the aggregate plan was to demonstrate cost-effective ways to meet the demand while maintaining productivity, quality, reliability and providing on-time...
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