(Note: This case relates to the appendix o the Theory of and Betty Spence, vice president of marketing, discussed the Constraints.) situation. "Weve got to do something, Betty began. don't Five Star Tools is a small family-owned firm that man think we can meet a customer's order deadline, we should turn simply keep ufactures diamond-coated cutting tools (chisels and business. We can't customers waiting used by jewelers. Production involves product or well a reputation as an unreliable supplier. three major pro- cesses. First, steel "blanks" (tools without the diamond coating) You know as well as I do that this would be devastating to our are cut to size. Second, the blanks are sent to a chemical bath that business replied Max. prepares the tools for the coating process. In the third major pro- "I think there may be another approach, Betty, Maybe we cess, the blanks are coated with diamond chips in a proprietary "Some of our products are exceptionally profitable. profitable process that simultaneously coats and sharpens the blade of each should concentrate on them and drop some of the less maybe we tool. Following the coating process, each tool is inspected and de ones. That would free up our production resources.or fects are repaired or scrapped. can figure out a way to run more product through the coating In the past 2 years, the company has experienced significant we could just loosen that constraint, I know we could growth and growing pains. The company is capacity the improve our response time and profitability. I'll tell you what of in coat analysis ing and sharpening process, which requires highly skilled workers get the accounting department to prepare an prod and expensive equipment. Because of the bottleneck created by product should us figure out which this operation, the company has missed deadlines on orders from ucts to concentrate on. And I'll get the production people think several important customers ing about how to free up some time in coating, Well meet early Maxfield Turner, the son of Frederick Turner, founder of next month and try to get a handle on how to deal with our pro- Five Star Tools, is the president of the company over lunch he duction constraints