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
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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.
3
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
Duplox Copiers Canada Limited is a wholly owned subsidiary of Duplox Copiers Incorporated as well as a multinational firm based in the United States. Duplox Copiers Canada Limited (DCCL) follow the classical management strategy which slightly shifts to human relations strategy in some aspects. Currently, the reputation of DCCL is at risk because of the high volume of internal and external complaints about the quality of the service provided. Also, the employee turnover rate increased which puts enormous pressure on the Technical Services Department, which is the primary source of the company revenue.
Quality Associates, Inc., a consulting firm, advises its clients about sampling and statistical procedures that can be used to control their manufacturing processes. IN one particular application, a client game quality associates a sample of 800 observations taken during a time in which that client's process was operating satisfactorily. The sample standard deviation for there data was .21 ; hence, with so much data, the population standard deviation was assumed to be .21. Quality associates then suggested that random samples of size 30 be taken periodically to monitor the process on an ongoing basis. BY analyzing the new samples, the client could quickly learn whether the process was operating satisfactorily. when the process was not
Facts: In 1952 the United States was in a conflict in Korea, and the demand for steel
The Chinese department store’s order would require significant communication with the UK based research and development centre which would take time to develop new ideas for products and cost money as well. The factory is also running at high levels of capacity with capacity utilisation of 95% which is 30% more than the UK factory. Since the factory is running at a higher capacity utilisation level it means that the number of defective products has raised as well as the care for quality has decreased and volume has increased. Andrew is worried this might not give the good impression that is needed from the company as they are trying to sell high quality British products. The amounts of defective products in the Chinese
While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas
In January 2014, Aesop has started the Australian Packaging Covenant action plan which will be finished in December 2016. It is assumed that the work started in the first phase of the plan i.e. 12-18 months will ultimately results the work to be done for the following rest phase of the plan. Whenever this action plan requires changes, it will be analyzed and modernized by Mr. Kieran Rivett, who is the Chief Financial Officer of Aesop.
Burlington Coat Factory, as known as Burlington, is an American discount department stores headquartered in Florence, New Jersey started on 1972. Today, Burlington is one of the largest off price department retailers in the United States.
NCB is a manufacturer and distributer of a wide range of office products. In Canada, NCB uses several distributers in different regions. One of the major distributers is Harrison Stationary and Office Supply LTD. Harrison had distributed NCB’S products for over 50 years and NCB was the largest supplier of Harrison. In January 2003 Harrison was acquired by the president of the company and four senior officers. Most of the acquisition cost was financed by bank loans. Since the acquisition, Harrison had difficulties to pay NCB for the goods and the account receivable reached to unacceptable level. In September 2005 the Harrison account was 156 days old and amounted to $ 4.4 million. In
CompuCo is attempting to move from a domestic producer to that of an international producer. In order to achieve this feat, the company must have an international focus in regards to its overall business operations. It is quite apparent from the case, that CompuCo does not have the will or desire to be proactive with its international subsidiaries. In order to achieve greater international success, Dr. Durand must first alter the company culture. First, all international subsidiaries should be treated as a primary business irrespective of their individual performance. It seems, through reading the case, that much more emphasis is placed on French product development and applications that is given to its international counterparts. This is a detriment to business as many of CompuCo's international customers have differing tastes and sentiments in regards to product offerings. The case cites numerous examples of this between both French and American consumers. French consumers, for example, like to read product manuals and prefer complexity over simplicity. Their American counterparts however prefer ease of use, and a simple design. The company was slow to discern these changes in consumer demands and elected instead to emphasize its French product design. This created consumer ill-will and
(If the company produce the BB first, the company will buy 4000 labor hours, and it will use 2500 for BB and the remaining hours to produce WRM = 1500.
Market leadership and technological innovation have marked Sealed Air's participation in the U.S. protective packaging market. Several small regional producers have introduced products, which are less effective than Sealed Air's but similar in appearance and cheaper. The company must determine its response to this new competition. The company is faced with a difficult choice of choosing from a range of feasible options ranging from doing nothing to introducing a new product. This has raised product line management issues, particularly cannibalization, and affords the opportunity for the development of a marketing plan for any new product introduction. The timing of launch and any change in policies for Air Cap
With many external factors affecting Alko it is important to assess these threats and look for areas of opportunity that allow for strength and improvement. First, Alko’s closest competitor has been offering new and redesigned products annually as well as adding direct shipping as an option to their customers. They have even begun offering two day shipping; something Alko is not currently capable of offering to their customers. Lightoiler has even been able to raise their prices after opening their new centralized warehouse (SCM 479, HW 4 Supplemental Information). However, Alko can use their competitions price increases to their advantage and look to becoming the low costs leaders with the potential to gain or at least maintain their market share. Their competition is by far their biggest threat but not to be forgotten is the number of defective products has been increasing from the inspection performed from the supplier deliveries, the inspections as the plants as well as the distribution centers. It has been recommended by quality to increase safety stock of items to account for the
with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was
Currently Atlantic’s existing Ohio linerboard mill produces 780 tons per day of linerboard, which represents a mere 1.8% of the nation’s linerboard capacity. This is far below the 150,000 tons of linerboard that Atlantic purchases every year from its competitors. Consequently, with such a tight market, linerboard could either become unavailable or available at very expensive prices. If Atlantic pursues their acquisition strategy in purchasing the linerboard mills from Royal, this could help greatly in strengthening Atlantic’s linerboard capacity and ensure to retain their box plants profits. With Royal’s current Monticello mill producing kraft paper and linerboard, this would require $140.8 million to convert all of the mill’s kraft capacity to
Bayonne Packaging, Inc is in the paper packaging industry. In the 1980s and early 1990s companies in the consumer goods industry start to look for a greater impact with their promotional materials and star to implement their promotional budget to the package itself instead of print media and broadcast forms. This led to a rapidly growth on the paper packaging industry.