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A. Synopsis This case describes a small furniture manufacturing company that has gained a reputation for creative designs and quality by focusing on producing custom-designed furniture. As its reputation grew it began to sell some standard furniture pieces to retail outlets. The overall growth in sales volume and the diversification into the production of standard furniture pieces have caused a number of issues to arise concerning both the internal manufacturing operations and its relationship to the other functional areas of the company. B. Purpose
This case is designed to be used as either a “cold-call” case for class discussion or an assigned homework reading. Major points to be brought out in the discussion include: 1. The range of decisions that are made in designing and operating processes 2. The impact that these operating decisions have on the organization as a whole, such as on marketing and finance 3. The impact that decisions made in other functional areas of the organization have on the operating function 4. The need to go beyond the “functional silo” mentality and manage in an integrative manner C. Analysis Question 1: What types of decisions must Chad Thomas make daily for his company’s operations to run effectively? Over the long run? You should be able to discuss a number of short-term-oriented decisions that are facing Chad Thomas. These should include: a. How to set priorities and schedule different orders. Chad is receiving orders for both custom-made, low-volume furniture pieces and higher-volume, standard pieces. Sales have increased, but the amount of equipment and the production capacity of the company have not. Different orders with different manufacturing requirements are now competing for the same productive capacity. b. What orders to accept and how long of a lead time to plan for in promising

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