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Theory of Constraints; StrategyColton Furniture Co. is a small but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. The flow diagram for the manufacturing at Colton follows. Colton's manufacturing involves five processes: cutting the lumber, cutting the fabric, sanding, staining, and assembly. One employee cuts fabric and two do the staining. These are relatively skilled workers who could be replaced only with some difficulty. Two workers cut the lumber, and two others perform the sanding operation. There is some skill to these operations, but these skills are less critical than those for staining and fabric cutting. Assembly requires the lowest skill level, and there is currently a total of 175 hours of working time per week provided by a single full-time employee plus some part-timers. The other employees work a 40-hour week, with 5 hours off for breaks, training, and personal time. Assume a 4-week month and that, by prior agreement, none of the employees can be switched from one task to another. The current demand for Colton's products and sales prices are as follows, although Colton expects demand to increase significantly in the coming months if it is able to successfully negotiate an order from a motel chain.

End Tables

Sofas

Price

$250

$450

Current demand (units per month)

400

150

1.Which of the activities is the constraint?

2.Using the constraint identified in requirement 1, calculate the throughput margin per hour for each product.

3.Given the results to requirements 1 and 2, how many of each product should be produced?

4.How would you apply steps 3 through 5 of the theory of constraints to Colton's manufacturing operations? What would you recommend for each step?

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