Sullivan Flooring Concepts

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BUSM35436 Business Cases
Sullivan Flooring Concept

NAME: Aisosa Okitikpi

DAY & TIME of CLASS: (Wed 12pm)

Key Facts of the Case (no analysis)
-Who is the decision maker? (Remember: in analyzing a case you have to put yourself in the position of the decision maker and try to figure out what YOU would do in his/her position).

Norm Sullivan

-maximum 5 key facts that summarize the case.

Fierce Competition
Price
Unique wood flooring concept
Growing interests
Culture change

Problem(s) Statement
-What is the main problem(s) or opportunity(s) that you (as decision maker) must deal with?

Sullivan must deal with how to improve the manufacturing process of his wood-flooring concept

-How urgent and how important is this issue and
…show more content…
Time available to finish planks for Norm Sullivan: 4.5 hours per week x 52 weeks = 234 hours (14040 minutes)
In that time he can create (with the table saw): 14040 minutes available /15 minutes required per board = 936 planks
In that time he can create (with the router): 14040 minutes available / 14 minutes required per board = 1002 planks.

Neither of these options is going to be sufficient to meet his production need of 1200 planks for the upcoming year.
What if he were to hire more workers? This would reduce the production time per plank and make it likely that he would be able to reduce the production time per board. For each worker he would be looking at $5200 per year.
His projected sales for the year:
- 1200 planks
- 10 feet each @ $6.00 per foot = $60 per plank Therefore, 1200 x 60 = $72000 His projected profit margin = 50%

Therefore 50/100* 72000=
$36000 in profit for the year.

Decision Criteria for Solutions
-What goals or objectives must be achieved by any potential solution to the problem? (eg. Must maximize market share)

Must improve productivity
Must increase overall delivery time
Must have a good return on investment
Must maximize competitive advantage
Must be able to increase quantity and quality

-What constraints limit the range of solutions (eg. Can’t cost more than $1 Million)

Can’t take too long to implement
Can’t cost more than 80,000 per year

Identification of Realistic & Practical Alternatives available
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