Mcs Case: Crown Point Cabinetry
Dian Ardhini Hapsari
10/310057/PEK/15230
International Class – Batch 55
WEEKLY ASSIGNMENT
MANAGEMENT CONTROL SYSTEM
Crown Point Cabinetry
Crown Point Cabinetry was founded in 1979 by Norm Stowell when he began making cabinets in his garage. Crown Point was a family run business which included all seven of his children and expanded to 100 employees by 1992. Brian Stowell, with his father’s and siblings’ agreement, became lead executive in 1993. When Brain Stowell took over, things were not running smoothly at Crown Point. Annual worker turnover was 300 percent and absenteeism was a major problem. Employee/management relations were described as “horrible.” Management’s solution to handle the situation was to wield a heavy hand but this had little effect. The greatest problem at this time was poor in-process quality control. Some cabinets were built three or four times before they got out of the shop. Brian decided to take a different approach.
Brian called a company meeting and announced that he would be making changes. Brian wanted people to say that they loved to work at Crown Point (which was not a desirable place to work at the time). He encouraged his skeptical workers to trust him. From 1994 to 2002, Brian Stowell and his wife Becky, introduced many changes to Crown Point Cabinetry. First he reduced payroll from 76 to 53 people. This increased unit and dollar sales. The management system was then revamped. The management layer was removed and replaced by a team-based management approach. These employee-based management teams were empowered with personnel and management decision-making responsibilities. These teams held daily meetings to facilitate communication, air complaints, suggest work improvements and schedule production. Co-worker review sheets were created to evaluate team member performance and recommend salary increases. These teams also had the power to hire and fire teammates.
In an effort to reduce labor costs (which
Dian Ardhini Hapsari
10/310057/PEK/15230
International Class – Batch 55
WEEKLY ASSIGNMENT
MANAGEMENT CONTROL SYSTEM
Crown Point Cabinetry
Crown Point Cabinetry was founded in 1979 by Norm Stowell when he began making cabinets in his garage. Crown Point was a family run business which included all seven of his children and expanded to 100 employees by 1992. Brian Stowell, with his father’s and siblings’ agreement, became lead executive in 1993. When Brain Stowell took over, things were not running smoothly at Crown Point. Annual worker turnover was 300 percent and absenteeism was a major problem. Employee/management relations were described as “horrible.” Management’s solution to handle the situation was to wield a heavy hand but this had little effect. The greatest problem at this time was poor in-process quality control. Some cabinets were built three or four times before they got out of the shop. Brian decided to take a different approach.
Brian called a company meeting and announced that he would be making changes. Brian wanted people to say that they loved to work at Crown Point (which was not a desirable place to work at the time). He encouraged his skeptical workers to trust him. From 1994 to 2002, Brian Stowell and his wife Becky, introduced many changes to Crown Point Cabinetry. First he reduced payroll from 76 to 53 people. This increased unit and dollar sales. The management system was then revamped. The management layer was removed and replaced by a team-based management approach. These employee-based management teams were empowered with personnel and management decision-making responsibilities. These teams held daily meetings to facilitate communication, air complaints, suggest work improvements and schedule production. Co-worker review sheets were created to evaluate team member performance and recommend salary increases. These teams also had the power to hire and fire teammates.
In an effort to reduce labor costs (which