BAYONNE PACKAGES Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

BAYONNE PACKAGES Case Study Solution

Contributions to the Problems

Dismantling the root causes of the problems have to be Bayonne Packaging’s foremost priority. The determined contributions to the problems are stated below:

Lack of effective communication:

Several company departments which includes; quality control, fold and Glue, composition department and sales management couldn’t find a proper channel to communicate their issues with each other. Combining with communication gap, the coordination is also missing between all the departments. This lack in interdepartmental communication gives chance for their respective managers to take the decision on their own and that too without taking into regards the consequences for other departments. A unified effort wasn’t present in the organization as each one of them worked on their own. Furthermore, there was no communication for the waiting times and hence they weren’t keeping any track record on meeting the delivery time. As a result customer orders had unpredictability.

Receiving the orders late:

According to fold and glue department head, they have to deal with a lot of orders that are a couple of days away from the due date. This creates mismanagement as they have to complete the orders that are already in line to be completed. Getting things done at the right time contributes to partial orders and it can further add up to lack in quality. The increased pace of the setup, increases the dirtiness and slows down the process which is not wanted by the department’s head considering the size of the volume.

Recommendations

Dave Rand can follow the below points to counter the company’s problems:

Overtime can be achieved if the company can increase its capacity. By doing this the variability can be controlled with better efficiency as increased capacity can strain off the process.
The company heads need to discuss the production issues by discussing the issues in daily meetings.
In order to enhance the quality, they have to assign workers for proper maintenance of the machines.
Rush orders can be reduced down by introducing a system to prioritize them. Red flags can be used for the rush orders so they can be completed prior to the other orders therefore bringing optimization in a form of lower rush orders.
The demand can be pushed up by applying a downward pressure on the prices. The reduced prices can work well in bulk orders. Managing the demand by reducing the price will mean that they are controlling the variability as well.
The rapid industrial growth has made way for ERP system by which production scheduling becomes a lot easier. Bayonne Packaging can as well use the ERP system to bring reliability and achievability in scheduling the production such that all the departments can adhere to it. By doing so, there will be lesser partial orders and lower rush orders hence resulting in reduction in unnecessary setup time.

Exhibits

Exhibit 1

CURRENT UTILIZATION
Machines	hours per machine	Number of Mach.	Total hours	scheduled hours for the work center	Capacity utilization per work center
Composition	255	1	255	347	73.5%
Jagenburg	279	1	279	347	80.4%
heidelberg press	348	2	696	694	100.3%
Bobst die-cut	272	2	544	694	78.4%
Int. Royal-queen	156	3	468	1041	45.0%
Int. Staude	179	4	716	1388	51.6%
Int. 3 A	145	2	290	694	41.8%