Another company...
Another company, Grand Rapids Spring and Wire Products, has formed PUSINTEK
minicompanies within its factory. The objective of minicompanies is to
have each employee assume ownership of his or her work. Each
minicompany has its own suppliers and customers (all within the
factory). Furthermore, each minicompany is assigned its own support
people: accountants, engineers, marketing people, and so on. The
individuals within the minicompany are given responsibility for
developing and maintaining good relations with their suppliers and
customers, identifying problems, and developing and implementing
solutions to those problems. The focus of each minicompany is on
quality, cost, delivery, safety, and morale. The company has successfully
created a quality culture, achieved a reputation for being a competitive,
world-class manufacturer, and has become a “learning” organization
Required…
Required PUSINTEK
Answer…
Answer Number 1 PUSINTEK
1. What are the objectives of excellence teams and minicompanies? Did the
companies achieve these objectives?
Basically the objectives of excellence teams and minicompanies are getting
employee on production line involved directly in to the management so that
improvement in production and safety.
The companies, indeed, take advantage from the experienced operating workers.
The operating workers, based on their experiences and knowledges in using tools or
equipment in production line and their experience at work environment could give
many improvement to the companies. The excellence teams and minicompanies
seemed achieve their objectives. The excellence team give direct improvement
during a six-year period , the company could increase pre tax profit in each year. The
minicompanies could implement a good work culture so that the company achieved
a reputation for being a competitive, world-class manufacturer, and has become a
“learning” organization.
Answer Number 2…
Answer Number 2 PUSINTEK
Answer Number 3…
Answer Number 3 PUSINTEK
Answer Number 4…
Answer Number 4 PUSINTEK
Operating Manager…
• Operating Manager: This report indicates that we have 30 percent more
defects than originally targeted. An investigation into the cause has PUSINTEK
Plant Manager…
• Plant Manager: Foreign competitors are producing goods with lower costs and delivering them
more rapidly than we can to customers in our markets. We need to decrease the cycle time and
increase the efficiency of our manufacturing process. There are two proposals that should help us PUSINTEK
accomplish these goals, both of which involve investing in computer-aided manufacturing. I need
to know the future cash flows associated with each system and the effect each system has on unit
costs and cycle time.
Decision Making, Role giving a comparative data about the future cash flow and the effect of each system on
unit costs and cycle time, so the management can make a correct decision.
• Manager: At the last board meeting, we established an objective of earning a 25 percent return
on sales. I need to know how many units of our product we need to sell to meet this objective.
Once I have the estimated sales in units, we need to outline a promotional campaign that will
take us where we want to be. However, in order to compute the targeted sales in units, I need to
know the expected unit price and a lot of cost information.
Planning, Role Providing the projection of the expected unit price and a lot of cost information so the
company could achieve its objective, earning 25 percent returns on sales.
• Manager: Perhaps the Harrison Medical Clinic should not offer a full range of medical services.
Some services seem to be having a difficult time showing any kind of profit. I am particularly
concerned about the mental health service. It has not shown a profit since the clinic opened. I
want to know what costs can be avoided if I drop the service. I also want some assessment of the
impact on the other services we offer. Some of our patients may choose this clinic because we
offer a full range of services.
Decision Making, Role Providing information to the management about the impact of dropping the
unprofitable service and the cost that can be avoided if the service is dropped.