oilwell cable company case solution

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By contrast, in a job shop the wages paid for labor are a major determinant to being cost-competitive, often running 30 percent of product cost, thus introducing a potential

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conflict between labor and management. Gino reasoned that if he could obtain the employees’ commitment to improving productivity, reducing scrap, being innovative with new technologies, and staying competitive in general, he would have a very viable firm.
With the approval of the new owners, Gino initiated his plan. Of the original labor force, only a few moved to Kansas, including Gino and the firm’s controller, Bill Safford.
All new equipment was purchased for the firm, and a local labor force was selectively recruited. As the firm was organized, the team management process was developed. Eleven teams were formed, six of which constituted the production area. The remainder included the management team; the resource team (support functions such as computing services, accounting, etc.); the technical team (including the lab employees, R & D, and so on); the administrative team
(office and clerical); and the maintenance team.
These teams basically set their own work schedules, vacation schedules, and job functions. They addressed common problems in their work area and interfaced with other teams when needed to

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