53690787-Case - Case: - FoldRite Furniture Co.: Planning to...

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Unformatted text preview: Case: - FoldRite Furniture Co.: Planning to Meet a Surge in Demand Case Characters:- Jose Ramos - VP of FoldeRite Furniture Company Martin Kelsey- Production manager Alice Yung- CFO 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 companys 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. Then company decided to change management in 2007, which was a recession, after that company did very well during recession. What changes they made during recession:- 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. FoldeRites Market:- Revenue wise there market was: Hospitality:- 60% Governments, corporate offices, schools, colleges , clinics accounted for :- 29% Individual Customers:- 9% Demand for FoldRite products was seasonal. Folding chairs were in high demand in the summer. Stackable chairs and folding tables were also popular around the holidays. Due to recession demand was very low in 2008. They reduced no of products in 2010 and their main products were:- AlStrong, a folding table in which recycled aluminum replaced the plastic top GreenComfort, a washable and stackable chair CloudChair, a folding chair that conformed to a wide variety of body shapes and provided comfortable seating even for overweight people (a growing market in most of the world). Now next focus of FoldeRite furniture:- Customization of their products Providing high quality products Emphasizing on ecofriendly products Manufacturing process:- The products used similar materials, which reduced the number of suppliers and the procurement overhead, and increased quality. All production planning was highly centralized. The production supervisor assigned workers to various tasks based on daily production plans derived from the weekly plan. production plans derived from the weekly plan....
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This note was uploaded on 07/16/2011 for the course FIN M0110 taught by Professor Kwak during the Spring '11 term at Delaware State.

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53690787-Case - Case: - FoldRite Furniture Co.: Planning to...

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