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APRIL 13, 2012

RO Y D . SHA PI RO PAU L E. M O R RI SO N

Bayonne Packaging, Inc.
Cold grey light came through the window of John Milliken's cubicle in the Production office of Bayonne Packaging at 6:30 AM on Monday, January 2, 2012. The new VP of Operations, Milliken had arrived a half-hour before the first shift started on his first day of work at Bayonne to review reports that had been prepared for him, and to begin his tour of the factory and interviews with key Manufacturing and other personnel. When he had been hired mid-December, the president, Dave Rand, had asked him to analyze Bayonne's operations swiftly and present his recommendations by the end of the week.

Company and Industry Background
Bayonne Packaging, Inc., was a $43 million company located in Bayonne, N.J., a sub-chapter S a local banker, and outside counsel. Bayonne was a "specialty packaging" paper converter that produced customized, complex-design packaging that was used by industrial customers for promotional materials, software, luxury beverages, and gift food and candy. Except for a few lowvolume operations such as laminating and gold- or silver-foil finishing, Bayonne provided all the necessary services from design assistance through final delivery of the package. Bayonne's sales force worked closely with customers to develop the artwork and package design, culminating in a proof for customer approval. Bayonne then created the printing plates and die, sheeted the paper from roll stock, printed the artwork on 4- and 6-color presses, die-cut the printed sheets into "blanks,"1 and folded and glued the blanks into the final product, which was typically finished at this point and ready to be shipped to the customer or a contents fulfillment house. In some cases Bayonne provided additional finishing work if needed such as attaching string-and-button fasteners, Velcro dots, or other attachments.

1 "Blanks" are die-cut paper shapes ready to be folded and glued into the final

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