National Furniture will rely primarily on raw materials such as lumber, nails, and glue to make it’s furniture products, although some merchandise must be bought on a wholesale basis to be affixed to the final product (for example, drawer knobs, hinges, etc.).  Both the raw materials and the wholesale products will be classified as purchases for the purpose of financial statements.

The manufacturing facility will be a giant warehouse, divided by partition into five large areas, with a small office for the manufacturing manager, including kitchen and restroom facilities for the employees.  One of the areas will be a receiving and storage area for raw materials and auxiliary items to be used in producing the furniture.  A second area will be used for the cutting and sanding of the wood products.  A third area will be used in assembly line fashion to assemble the final furniture product.  A fourth area will be dedicated to staining/painting the final product.  A fifth area will serve as the stock house for inventory as it awaits pickup and delivery.

National Furniture will rely on skilled craftsmen for the production of it’s furniture products.  These craftsmen will be assisted by precision machinery in both the drafting and design of the final product.

Drafting at National Furniture will be done at the most advanced levels.  Furniture will not be designed by hand, but will be electronically envisioned through CAD (computer assisted drafting) even before being built as a prototype.  The company will use desktop 486 technology for this purpose.

The company intends to buy the newest and best machinery available in order to defray the cost of errors and mechanical failure, characteristic of the older machines.  The new technologies are relatively easy to learn, and are definitely easier to operate than the outdated processes.  
Re-training labor and locating skilled labor to operate these machines will pose no challenge.  Thus, a program of purchasing the best available equipment is a beneficial use of the company’s capital.