The situation
Bayonne Packaging Inc is a company that deals with production of customized packaging for promotional materials, gift food and candy. Bayonne company has been in succesful operation since 1982. Recently there have been changes within the industry that are a challenge for Bayonne. Changes in the market such as the use of the Internet instead of software sales and CDs have brought the company to a new awakening. Bayonne has previously relied on diversification of its products into many markets.
The company needs to focus on specific issues for survival. These include cost, quality and delivery. These are the crucial issues upon which the company is based. The company has a new VP Operations, John Milliken, who is to focus on these issues and give recommendations. The first step he takes is carrying out a tour of the various departments within the company to do a quick evaluation of Bayonne’s performance. Bayonne’s performance may be summarized as unsatisfactory. Based on the net profits that have been realised specifically the October 2011 report, the firm has performed poorly. There has been a drop in the net profit. In terms of the output; the number of pieces in is less than that of pieces out indicating less production hence poor performance.
The impact of current resource allocations, policies, incentive systems, and operating procedures on the current situation at Bayonne.
In the quality control department, omission in the orders made is one of the problems. There has been late submission of orders; orders are received and not delivered punctually. There is less allocation of resources such as glue needed in the construction of the boxes. There is less surveillance that leads to work being defective hence low quality output. The company has poor customer awareness, which has resulted to negative publicity. There has been less innovation and invention of new products. Excess orders are made which have to be acted on quickly leading to poor quality output. The use of old technology and inaccurate ways in tracking of data in the Scheduling department has led to inaccurate reporting of data.
How well is Bayonne utilizing its current capacity?
The various production departments do not meet their expected production thresholds. The orders are substantial, but the amount of produce is less than input. There are well-fitted facilities at each level of production. Looking at the exhibit on material flow through operations, we can see that the output is less than the input, and indicator of capacity underutilization.
Which process management tools for improved operational strategy execution should Milliken be considering for implementation? Why are some tools more appropriate than others in this situation?
Milliken should use merit oriented tactics. It involves the analysis of the performance from each department. There should be specialization management techniques. Each department should be specialized in a certain process. There should be a department for booking in and evaluating orders. The other tool is a complete revolutionization of processing information, and production machines. There should be new methods of operations based on new technology. A formal way of running the jobs instead is necessary. Use of merit tactic is more appropriate in our case because the company is needed to deliver better to the customers.
Evaluate the existing support systems at Bayonne. How do these information and control systems impede or aid the cause of good strategy execution? What changes might be necessary?
The existing support systems include a stand-by maintenance facility and a computerised data tracking system. The maintenance facility ensures a quick recovery in case of breakdowns. It ensures that machines and equipment have regular checkups. The computer systems in the Scheduling area are not very reliable. The data has been inaccurate giving wrong feedback. For the computer systems to be worthwhile there is a need for new installations and fixing of the already erroneous data.
What should Milliken recommend to Dave Rand?
There is a need for evaluation of the data from the Scheduling section; most of it is inaccurate. Better data keeping and information tracking systems should be installed. More supervision in the production process is necessary. It will ensure long term devotion of the workers. There is a need for increasing the work centres with better management set up. Receiving and processing of orders needs assessment. There is a need to assess if the right machines are used in the production. The scheduling system needs restructuring to produce accurate data.
