For more than 75 years, New England Foundry, Inc. (NEFI) has manufactured wood stoves for home use. In recent years, with increasing energy prices, President George Mathison has seen sales triple. This dramatic increase has made it difficult for George to maintain quality in all his wood stoves and related products.

Unlike other companies manufacturing wood stoves, NEFI is in the business of making only stoves and stove-related products. Its major products are the Warmglo I, the Warmglo II, the Warmglo III, and the Warmglo IV. The Warmglo I is the smallest wood stove, with a heat output of 30,000 BTUs, and the Warmglo IV is the largest, with a hem output of 60,000 BTUs,

The Warmglo III outsold all other models by a wide margin. Its heat output and available accessories were ideal for the typical home. The Warmglo III also had a number of other outstanding features that made it one of the most attractive and heat-efficient stoves on the market.

Discussion Questions

1. How much time would the new layout save?

2. If casting personnel were paid $9.50 per hour and molding personnel were paid $11.75 per hour, how much could be saved per hour with the new factory layout?

3. Should George have made the change in layout?