Step 1: The most relevant facts
The Woody Manufacturing Company produces bar stools. The demand for its products has recently increased and the owner Mr. Woody has to expand the organization. In particular, one should focus on the design of management structure, the allocation of duties to employees, or compensation system.
The most important task for Mr. Woody is to decide how to organize the work of employees. Their activities should correspond to the bar stool-making process which consists of 15 steps. Moreover, Mr. Woody is concerned about the elimination of defects and late deliveries because they lead to additional costs.
Steps 2 and 3: The root problem and the main components of the problem
In this case, the main problem is the lack of a clear approach to the manufacturing process. As it has been said before, bar stool-making process includes 15 steps. However, Mr. Woody does not know how to reduce operational costs and ensure high quality of products. There are several components of this problem. There are several elements of this problem. First of all, one should speak about the increased risks of defects at the early stages of manufacturing process.Secondly, it is important to remember about the changes in demand.
Step 4: Generating Alternatives
It is possible to offer several recommendations to Mr. Woody. First of all, he can hire part-time workers who will be needed at the time when the demand for the products of the factory increases. In turn, the management team will be employed on a permanent basis.
Secondly, Mr. Woody can employ a great number of employees in order to make sure that the risk of defects or late deliveries is reduced to the minimum. Thirdly, it is possible to allocate the most skillful employees to such activities as the selection of wood, cutting, and removal of defects, because the failure to cope with these tasks leads to additional costs, late deliveries, and dissatisfaction of clients. Moreover, the compensation of workers and managers should increase provided that the organizational performance improves.
Step 5: Evaluating Alternatives
There are several strengths and weaknesses of these alternatives. The employment of part-time workers is possible if there are sharp changes in demand.
However, this strategy does not help the company to promote professional growth of employees. In turn, by hiring a greater number of workers, Mr. Woody can improve the quality of products; nevertheless, the costs will increase. In turn, the third strategy can enable Mr. Woody to achieve the most effective organization of labor and increase the motivation of both managers and workers.
Step 6: Choice of the Alternative
I would recommend the third alternative because it is helpful for maintaining the excellent quality of products and increasing the profitability of an organization.
Step 7: Implementation Plan
During the first days, the employees will be divided into the teams that will complete different stages of manufacturing process. Secondly, at the end of each month, the employees’ performance will be evaluated on the basis of the revenues derived by the company. Furthermore, at the end of every week, the managers and employees will have to identify and eliminate inefficiencies that lead to delays and defects.
Step 8: Alternative Choice
The validity of a plan will be evaluated at the end of each month. Much attention should be paid to such criteria as operational costs, the number of late deliveries, and opinions of clients. If the company does not reach expected standards, the management should adopt a different strategy. Mr. Moody may decide to employ a greater number of employees because the Woody Manufacturing Company can extend successfully if it offers high quality products to clients.