Old Oregon Wood Store
In 2002, George Brown started the Old Oregon Wood Store to manufacture Old Oregon tables. Each table is carefully constructed by hand using the highest quality oak. Old Oregon tables can support more than 500 pounds, and since the start of the Old Oregon Wood Store, not one table has been returned because of faulty workmanship or structural problems. In addition to being rugged, each table is beautifully finished using a urethane varnish that George developed over 20 years of working with wood-finished materials.
The manufacturing process consists of four steps: preparation, assembly, finishing, and packaging. One person performs each step. In addition to overseeing the entire operation, George does all of the finishing. Tom Surowski performs the preparation step, which involves cutting and forming the basic components of the tables. Leon Davis is in charge of the assembly, and Cathy Stark performs the packaging.
Although each person is responsible for only one step in the manufacturing process, everyone can perform any one of the steps. It is George's policy that occasionally everyone should complete several tables on his or her own without any help or assistance. A small competition is used to see who can complete an entire table in the least amount of time. George maintains average total and intermediate completion times. The data are shown in Figure 1.
It takes Cathy longer than the other employees to construct an Old Oregon table. In addition to being slower than the other employees, Cathy is also unhappy about her current responsibility of packaging, which leaves her idle most of the day. Her first preference is finishing, and her second preference is preparation.
In addition to quality, George is concerned with costs and efficiency. When one of the employees misses a day, it causes major scheduling problems. In some cases, George assigns another employee overtime to