FOLDRITE FURNITURE

CO.: Planning to Meet a

Surge in Demand
Presented By:
Group-1
Section : M1
AGENDA
 About the company

 Good practices

 Bad practices

 Problems

 Solutions
ABOUT THE COMPANY
 Founded in 1987, in Colorado

 Started with the production of banquet tables mainly for

small school and church functions

 Later on, Production of light and durable folding tables and

stackable chairs with innovative strategy

 The revenue increased significantly from 1999 to 2006

 The total revenue for the year 2006 was $60.3 million and the
annual growth was averaged at 3.5%
GOOD PRACTICES
 Reduced the no. of products and enable customization of
products in order to achieve competitive advantage

 Maintained a strategic inventory of fully and partially

assembled parts to cover 2 weeks of forecasted inventory

 Maintained good labour relations by giving regular incentives

 Production planning was highly centralized

 Time to time meetings and well coordinated departments

BAD PRACTICES
 Loss of productivity and yields caused by high
labour turnover

 Increasing proportion of unskilled workers

resulting in late delivery of products and
increased lead time leading to loss of
productivity

 Continuous acquisition of small firms which

distracted management from their main issues
PROBLEMS
 Financial crisis due to reduction in productivity and yield

 The new hired workers were not equipped with the right skills

 Increased market demand for Fold Rite products

 Production plan to be made for the upcoming six months to

meet the challenges

 Maintaining the quality and speed of the production process

SOLUTIONS
 More production of Cloud Chair since it has greater
contribution margin and lower cost of production and cheaper
product line.

 Keep planning strategy aligned with company goals by

choosing stable workforce and level strategy

 For seasonal products, it’s more efficient to have constant

labour and subcontracting the rest of demand

 The usage of MRP, ERP, SCM, and other IT related system to

improve production planning quality
THANK YOU