Theory of Constraints Required:

Part 1: Show detail, labeled computations suppolting leading to the 'Dost profitable production plan for Colton Furniture (i.e., sh0"'ing how many end tables and sofas should be produced). One clarification of the given problem infornation below: The problem indicates that assembly has one full-time and several part-time employees who "provide a total of 175 hours of working time per week." Note that the 175 hours of assembly working time includes the full time and the part-tilne employees.

Part 2: Give at least three ideas on how Colton might apply step 4 of the constraint management process (i.e., how Colton might elevate the constraint). If you suggest something the problem indicates cannot be done, such as violating the agreement 'With workers, you need to explain how you would go about implementing that palticular suggestion. I will grade this part easy as long as your answers are reasonable.

eory of Constraints; Colton Furniture Co. is a small but fast-growing manufacturer of living room furniture. Its two principal products are end tables and sofas. The flow diagram for the manufacturing at Colton follows. Colton's manufacturing involves five processes: cutting the lumber, cutting the fabric, sanding, staining, and assembly. One employee cuts fabric and two do the staining. These are relatively skilled workers who could be replaced only with some difficulty. 'IWo workers cut the lumber, and two others perform the sanding operation. There is some skill to these operations, but it is less critical than for staining and fabric cutting. Assembly requires the lowest skill level and is currently done by one full-time empkoyee and a group of part timers who provide a total of 175 hours of working time per week. The other employees work a 40-hour week, with 5 hours off for breaks, training, and personal time. Assume a four-week month and that by prior agreement, none of the employees can be switched from one task to another. The current demand for Colton's products and sales prices are as follows, although Colton expects demand to increase significantly in the coming months if it is able to successfully negotiate an order from a motel chain.

Price $250 $450

Current demand (units per month) 400 150

End table Sofa

Lumber price = $100	Lumber price = $75	Fabric price = $175
Cut 30 mins	Cut 12 mins	Cut and trim 48 mins
Assemble 45 mins	Sand 30 mins
Sand 30 mins		Stain 18 mins
Stain 48 mins		Assemble 1.5 hrs
End table = ?		Sofa = ?