Natural Designs
University of the Philippines Operations M anagement MBA Mid-term Exam
Mandhyan, Ash (2009-78585) Professor Erwin A. Raya Phd. Case 1. Natural Designs, Inc. Questions & Answers: 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? a. b. On a daily basis, Jim must analyse their available supply and anticipate demand and manage sales in order to balance demands for goods to available supply. Long-term decisions. i. Understand the company’s goals and direct growth decisions based on the mission and desired road map of the company. ii. Improve manufacturing and delivery systems in order to meet desired delivery time. 2. Describe the operations strategy for Natural Designs. Has this strategy changed as a result of the custom bird feeder operation? If yes, how? a. Natural designs provided a limited amount of products with colour variations available by selecting from the 10 styles with variations up to 500 STU. November 2, 2010 Business Administration 240
Yes, the strategy changed from providing variety based on fixed and limited designs, to creating variations based on the customers desires and specifications. (This may also have lead to returned orders because of the detailed and clear communication necessary for customized goods) 3. What might have been done differently to facilitate the offering of custom bird feeders? a. Customers may have been provided choices for limited customization, such as variety of colours or finishing’s they can get it in, but not to the extent where the details would consume more labour time resulting to a reduction in profit margins. Pricing would not be fixed at $10 for customization. It should vary depending on the amount and intricacy of the customization requested for.
b.
4. How should McMaster analyze the alternative expansion options? Which would you recommend: a second facility or a move to a single, larger
Mandhyan, Ash (2009-78585) Professor Erwin A. Raya Phd. Case 1. Natural Designs, Inc. Questions & Answers: 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? a. b. On a daily basis, Jim must analyse their available supply and anticipate demand and manage sales in order to balance demands for goods to available supply. Long-term decisions. i. Understand the company’s goals and direct growth decisions based on the mission and desired road map of the company. ii. Improve manufacturing and delivery systems in order to meet desired delivery time. 2. Describe the operations strategy for Natural Designs. Has this strategy changed as a result of the custom bird feeder operation? If yes, how? a. Natural designs provided a limited amount of products with colour variations available by selecting from the 10 styles with variations up to 500 STU. November 2, 2010 Business Administration 240
Yes, the strategy changed from providing variety based on fixed and limited designs, to creating variations based on the customers desires and specifications. (This may also have lead to returned orders because of the detailed and clear communication necessary for customized goods) 3. What might have been done differently to facilitate the offering of custom bird feeders? a. Customers may have been provided choices for limited customization, such as variety of colours or finishing’s they can get it in, but not to the extent where the details would consume more labour time resulting to a reduction in profit margins. Pricing would not be fixed at $10 for customization. It should vary depending on the amount and intricacy of the customization requested for.
b.
4. How should McMaster analyze the alternative expansion options? Which would you recommend: a second facility or a move to a single, larger