Natural Designs

In: Business and Management

Submitted By lopezrosal
Words 801
Pages 4
1. What types of decisions must Jim McMaster make on a daily basis for Natural Designs to run smoothly? What kind of decisions must he make on a long-term basis?

Short-term Decisions (Infrastructural)
• In terms of workforce, Jim has to decide on a daily basis on how many employees will work on customized feeders depending on volume of sales orders. Since orders vary per season, he may train other employees from other departments/products for the skills needed in producing the customized bird feeders. These employees can work on the customized bird feeders product during peak season and go back to their original job function or product on low-volume seasons.
• Still depending on sales volume, Jim has also to decide how many orders to be satisfied daily. This includes production and distribution of the products to customers. As orders are received and updated real-time with the help of the internet, daily production targets should likewise be updated.
• Quality control should also be part of Jim’s daily decisions or of the company. To ensure that customers receive high quality products, there should be a dedicated group assigned to check product quality. This group may be part of the production team or the task may be assigned by Jim to his production manager.

Long-term Decisions (Structural)
• An explicitly stated structural decision in the case is Jim’s consideration of either a second facility or moving to a larger facility.
• There is also a need for Jim to review product costs and identify which costs he can do without since cost has significantly increased from the previous year as evidenced by the declining percentage of profit to sales. The need for this decision is also clear in the statement that Jim is not sure exactly how much extra labor is needed in fulfilling the customization portion of the order.
• In terms of capacity, Jim might…...

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