Custom Fabricators, Incorporated Case Study

Custom Fabricators, Incorporated Case Study

Since its release in 1994, the North American Free Trade Agreement (NAFTA) has impacted the manufacturing sector in the United States. Manufacturing organizations such as Custom Fabricators, Inc (CFI) have been forced to find ways to cut costs to remain competitive. In the United States, NAFTA has contributed to the reduction of employment in high- wage traded-goods industries, growing wage inequality, and a steady decline in demand for workers without a college education. The majority of the net jobs displaced were in the manufacturing sector. Growing trade deficits with Canada displaced 270,248 manufacturing jobs while growing deficits with Mexico displaced 388,682 manufacturing jobs, for a total of 658,930 manufacturing jobs displaced (64.9% of the total) (Scott, Salas, & Campbell, 2006, p. 1). Figure 2 displays job losses per state.

Figure 2

NAFTA Impacts on Jobs per State

Note: Retrieved from Scott, Salas, & Campbell, 2006, p. 1.

This paper will summarize the Custom Fabricators, Inc. case study by Chase, Jacobs, & Aquilano, p. 44, answer the discussion questions shown in Figure 2, and define the role of Operations Management at Custom Fabricators, Inc.

Figure 2

Case Study Discussion Questions

Note: Retrieved from Chase, Jacobs, & Aquilano, 2004, p. 45.

Custom Fabricators, Inc.

CFI is a non-union shop with loyal employees, and low employee turnover. CFI started by providing sheet-metal elevator panels for Orleans Elevator in the 1980s. Since that time CFI's role with Orleans has grown due to Orleans policy with regard to outsourcing. Not only does CFI produce panels, but CFI also provides the entire panel assembly, which includes the electronics, the eleva...

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... business strategies to remain competitive. These changes may require difficult decisions with regard to employee cuts and relocation of facilities but are necessary to remain in business. OM at CFI and other companies, must constantly examine potential threats and opportunities, and make improvements as required. These changes will ensure the company's position in the global marketplace.

References

Chase, R. B., Jacobs, R., & Aquilano, N. (2004). Operations management for competitive advantage (10th ed.). New York: McGraw-Hill. Retrieved February 23, 2007 from University of Phoenix, Resource, ISCOM/471—Operations Management Web site: https://ecampus.phoenix.edu/secure/resource/resource.asp

Scott, R. PhD, Salas, C., Campbell, B. (2006, September 28). Revisiting NAFTA: Still not working for North America's workers. Retrieved March 23, 2007 from www.epi.org