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Bayonne Packaging Inc. Case Analysis

Decent Essays

BAYONNE PACKAGING, INC. CASE 1 OPERATIONS MANAGEMENT teached by Manuel Baganha and Virginia Ulfig

GROUP 18 DAVID STIEHL 10217 GONÇALO CORREIA 10613 RUI SOROMENHO 10308 TIAGO SILVA 11006

This case is based only on data available on “Bayonne Packaging, Inc.” by Roy D. Shapiro and Paul E. Morrison

Case 1

BAYONNE PACKAGING INC.
Bayonne is a “specialty packaging” paper converter that produces customized, complex design packaging used by industrial companies in promotional materials, software, luxury beverages, gift food and candy. The company is located in New Jersey, USA and is worth 43 million dollars. In spite the company’s sales growth in the last few …show more content…

Poor quality reflects in the number of defective products sent to clients and therefor rejected by them (1,5% of total sales). Therefor Bayonne has to fix or substitute the defective products, incurring into more production and delivery costs, wasting production time, which could be used to fulfill other orders, reaching a higher output level. Delivery dates are other of the main issues affecting Bayonne’s performance, which are extended more than 20% of the time. This value indicates a loss in terms of customers’ welfare as it translates a deficit on the production performance of the company, particularly when we compare it with the 5% that the company achieved in 2009. Customers are already expediting the delivery date just to receive the product in time.

Group 18

Bayonne Packaging Inc.

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Case 1

Making a detailed analysis on the Bayonne’s time management we observe several inefficiencies that contribute to this problem. First of all the bad scheduling of the process and informal recording of the data made by the supervisors and workers of the production are constraining the quality control of the product and also the accomplishing of the schedule, causing several delays. Bayonne should implement strict rules in terms of production recording and put the information available to all the departments in order to make the orders run in time. The batches allocation is also a serious matter

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