Case Study : Manufacturing Plant Named Engstrom Auto Mirror

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The purpose of this assignment is the analysis of a case study for a manufacturing plant named Engstrom Auto Mirror located in Richmond IN. The company has been in business since 1948, during most of its existence the business ran well and they were successful but by the 1990’s they started a downward spiral toward being unprofitable. In the early 2000’s for a period of seven years their sales had quadrupled but in 2006 there was a downturn in the auto industry which led to cuts having to be made resulting in the unfortunate circumstance of layoffs. They currently have 209 employees which is down from 255, 46 people were layedoff in 2006. The catalyst for their prolonged period of propersity was the 1998 descison to implement an organization-wide incentive program called a Scanlon Plan. Prior to its implemation the company was marked by inefficiency, low productivity, low morale and quality issues, management measured productivity at 40% of expectectations. At the time of the case study the problems of the past were starting to surface again things like layoffs and no incentives for the employees were causing rumblings in the workforce. Another pressure point was the companies relationships with its customers that had been built in part through the gains made by implementing their Scanlon Plan and their customers put a lot of faith in the company to provide high quality products in a timely manner. The Scanlon Plan methodology was initially developed in the 1930’s by

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