Improving The Situation At The Engstrom Auto Mirror Plant

In Station Quality amplifies problem. It makes any production problem instantly self evident and stop producing whenever problems are detected. Notice that problem are not only caught were they occur with this flow process but actually because of the pulled or downstream approach that any station can find problems miss by an earlier team. This encompasses that the entire production line is responsible for each other work. To further insure that the right part was available at the right time. TPS extended this process to its supplier by using another process step HEIJUNKA (Load Leveling). This process was simply, even distribution of special products or special orders. This prevented, as quoted in the case study “…several production runs…” each dedicated to just one model or one special order. TPS defined needs and value from the viewpoint of the next station down the line that is the immediate customer. These two tools which will give the employee the ability to catch defects quickly and work to correct the problem. Shows TPS complete faith in the employee and the team to solve most problems without a supervisor. In fact TPS development of these two principles and Load Leveling exemplify the individual employee or the team ability to solve most if not all the problems in the production. These tools along with the team concept instill a level of trust between the employee and management as the individual

Our task for the Engstrom Auto Mirror Plant case analysis was to identify the main problems of the company as well as it’s managers’ decisions and to find reasonable solutions by taking into account roots from where they have been appearing. This case is extremely relevant because it looks at organizational behavior everyday problems and analyses issues of building relationships with employees. All our assumption will be based on Organizational Behavior theoretical background in order to find solutions and alternatives for the particular company’s case. The main aim was to figure out how to increase company’s productivity, employees’ motivation and management strategy.

In May 2007, the Engstrom Auto Mirrors plant was facing the crisis. The business was doing badly and the sales had started to decline in 2005. Thus, there was a steep reduction in plant productivity and employee morale was all time low. The company used Scanlon Plan as an incentive for staff. The core element or foundation of the plan was concept of participative management, where management and staff together will decide the bonuses based on revenues for that year.

The Scanlon Plan can be used as a major catalyst to turnaround the plant by emphasizing more on productivity. The more they work the faster they roll towards their bonuses; this magical spell is a win-win situation for both the employees and the management. The management can cruise steadily over the wave of bonus motivated productivity and the employees can reap the benefits from the high production rate in terms of bonuses. The plan can be redrawn and a slight change can be made by making the entire plan revolve around the concept of productivity. When productivity assumes a prime position in the plan, employees will strive hard

Hinrichs’s active management of change within the factory and focus on worker satisfaction and buy-in resulted in a lot of small victories that he used to win over the workforce’s trust and respect. In the process, Hinrichs transformed the plant from one that was resistant to change to one that embraced and was excited for change.

Engstrom Auto Mirror, a successful privately owned plant since 1948 in Richmond, Indiana, reached one of their biggest productivity setbacks in May 2007. In their near 60 years of business this was the company’s second cross with unprofitability since the 90’s, when technology was surfacing and causing tension between the company and their customers. The manager at the time was unable to adjust, deciding to resign in 1998. Nearing the end of the 90’s, Ron Bent was hired as plant manager. Leading into the new millennium, his plan was to implement an employee incentive plan to increase productivity with the employees using bonuses to allow their business to continue to thrive. That was the introduction of The Scanlon Plan, it reinforced

Our solution to this ongoing problem that Engstrom Auto Mirror Plant is facing is firstly, clearly outlining their calculations for each individual’s yearly bonuses — ones that should specifically be a result of employees reaching a certain quota of production. This aids in eliminating distrust within the company to ensure employees that the company is fairly and regularly awarding bonuses for their individual work, which in turn will improve their productivity, according to the equity theory. Also, since they know that their efforts will certainly lead to a reward, they will be more motivated to work, according to the expectancy theory. In addition to this, employees who exceed the certain quotas of production or show significant improvements

During May 2007, the Engstrom Auto Mirror Plant faces a low employee morale issue. The newly appointed manager, Ron Bent, sees a decline in work place productivity and culture throughout his recent years of working at the plant. When Bent joined the company, it was facing a similar issue of low morale. He then decided to introduce the Scalon Plan, an incentive program for the employees, to raise morale. The program was successful when it was first introduced but ran into problems time after. Bent was faced with many challenges with the Scalon Plan that caused him to ask many

One of the valued but demanding customer, who had considered Engstrom as a certified supplier, was requesting a large order but Engstrom was unable to deliver on time due to the low productivity problem. The plant manager along with his assistant were already dealing with the troubling numbers when this happened. While the task was a tough bone and not easy to tackle, and there were a lot of factors needed to be taken in to consideration. The leadership started to analyze and break down the main causations other than the overall economic trend that dragged the company into the turmoil, as it turned out, it was the low, frustrated employee morale and diminished work satisfaction.

The solution to the problem in this case is to develop a strategic plan that will modify the employee behavior, redefine the roles and responsibilities of management, and manage the organizational culture while reducing production costs and gaining a competitive advantage. The solution will require management to examine and modify the current leadership style. In addition, management should address the issue of valence within the motivation equation and establish well-defined goals that will enhance the employee’s perception of their role within the organization. Reformation to the overall morale and culture is critical in order to terminate the work stoppage, reduce costs, and get the shipments back on schedule.

They have to comprehend why it is imperative and precisely what they have to do to arrive. It is key that upper or official administration bring their specialists and their forefront experience and proposals into their basic leadership process. I additionally recommend that the yearly cost the plant gets from turnover, be coordinated in a preparation spending plan. Line foreman require preparing in assembling forms, as well as in relational abilities. The present sink or swim strategy is just exacerbating the situation and expanding the hole amongst laborers and administration. At last, the representative evaluation framework is an exercise in futility and assets as it doesn't give helpful data on the best way to create laborers keeping in mind the end goal to build generation, benefit or occupation fulfillment. On the off chance that an examination framework will be utilized, it should be more particular and adjusted to shared reason for the organization so laborers can utilize it to figure out how to carry out their activity better, not as a discipline

The Engstrom Auto Mirror Plant relatively small supplier based in Indiana is as yet confronting issues with efficiency, and benefit misfortune. Creation laborers have turned out to be troubled and lost trust in the Scanlon reward design. Engstrom Auto Mirror Plant is encountering a broken impact in their social framework. Workers have an absence of intrigue and trust for the organization due to the fizzled motivating force design in movement. Workers feel the estimation of the Scanlon design isn't reasonable in view of the measure of rewards that is disseminated and reasonableness. Employees morale and overall motivation has severely decreased. With such, Engstrom faces low employee productivity, low profit margins, and a risk

Employee involvement was a key issue in product improvement because the line workers knew much better than management what was right or wrong with the production, their contribution to decision making became vital issue.

Opportunities for additional changes in the Autozone firm will potentially open up several thousand jobs as it plans to expand their market to cover other countries and increase revenue. Recently, twenty-six new stores have opened in the United States and four new stores in Mexico for a total store count of six thousand ninety-two. Autozone is not looking for just any individual to fill those open spots, but an individual that fits in the new customer oriented environment. It’s newly adopted pledge puts customers first, makes employees knowledgeable of parts and products, and houses the best merchandise. This will involve making smarter recruitment decisions to hire folks that fit the pledge. One of Autozone’s strengths include a new improvement

Now the organisation is looking at taxes and fuel costs rising a problem mentioned in the case study. This problem is related to two other problems which is lack of staff communication as well as transportation as they are the key aspects in making profit in an organisation. The work flow of the staff and whether the products are delivered on