Summary:

The Starfish Studio Co. (Starfish) was founded by sole proprietor Madeline Noftle who created handmade resin art, featuring crystals and pressed flowers. Since starting the business, Noftle’s goal was to spread joy and inspire positive change. With the bestseller moon-shaped resin suncatcher experiencing high demand during the holiday season, Noftle was unsure whether the current production process was the most effective way to meet demand and considered two alternatives to expand capacity: renting a studio space or hiring an employee to handle off-site production. Currently, Starfish’s process relied on a combination of Noftle’s creative work and the assistance of her part-time employee as the unique resin art pieces required time-intensive steps. Students are asked to analyze the production process by evaluating customer priorities, assessing the current system and determining whether it can meet current and future demand. They will compare potential capacity expansions and assess each alternative qualitatively and quantitatively through annual net benefit and payback calculations. This operational management case is designed for an undergraduate introductory business course at the university level.