| The executive team at Current Designs has gathered to evaluate the companys operations for the last month. One of the topics on the agenda is the special order from Huegel Hollow, which was presented in CD2. Recall that Current Designs had a special order to produce a batch of 35 kayaks for a client, and you were asked to determine the cost of the order and the cost per kayak. Mike Cichanowski asked the others if the special order caused any particular problems in the production process. Dave Thill, the production manager, made the following comments: Since we wanted to complete this order quickly and make a good first impression on this new customer, we had some of our most experienced type I workers run the rotomold oven and do the trimming. They were very efficient and were able to complete that part of the manufacturing process even more quickly than the regular crew. However, the finishing on these kayaks required a different technique than what we usually use, so our type II workers took a little longer than usual for that part of the process. Deb Welch, who is in charge of the purchasing function, said, We had to pay a little more for the polyethylene powder for this order because the customer wanted a color that we dont usually stock. We also ordered a little extra since we wanted to make sure that we had enough to allow us to calibrate the equipment. The calibration was a little tricky, and we used all of the powder that we had purchased. Since the number of kayaks in the order was fairly small, we were able to use some rope and other parts that were left over from last years production in the finishing kits. Weve seen a price increase for these components in the last year, so using the parts that we already had in inventory cut our costs for the finishing kits. |
