IN A SMALL MANUFACTURING COMPANY
The object of this assignment is to produce a two year plan to implement a programme of integrated performance improvement activities in a small manufacturing company that employs about 30 people. Metal components are manufactured, and the factory is arranged around five machines in three cells according to small, medium and large components. Heat treatment and grinding and the other major operations, as well as secondary operations.
The following text describes the situation on the factory prior to the implementation of a performance improvement programme.
1. Company History and Structure
In 2000 the long-standing co-director and manager of the Company resigned, leaving the position open for one of the present staff. There were several contenders for the position, including the two office staff both of whom had worked closely with him for years and had been given management titles.
Two senior and experienced shop floor staff were also contenders.
The Chairman of the company was unsure that anyone of these individuals possessed the skills required for the position, and consequently established a team of managers to run the factory. The management team consisted of the two office staff and one member of the shop floor who was elevated to 'Works
Manager ' to liase between the office and the factory.
No hierarchy or line accountability was introduced. However, the Works
Manager believed he was now the most senior member of staff. The office staff refused to accept this and consequently a power struggle developed.
The company Chairman appeared to champion the Works Manager, however the Works Manager 's seniority was never formally acknowledged.
Prior to 2000, the structure of the company was centred round the co-director.
Without any production teams or team leaders, every member of staff was directly accountable to the co-director. The lack of any intermediate