KEY FACTS
• Orlando metering company or OMC originally was founded in Orlando, Florida, in 1974. The PMG group is the parent company of OMC based in Europe. The company manufactures water meters for a utility company at a global platform.
• There are some players in the market that manufactures meters. However, the company offers quality, innovative and effective product, to gain competitive advantage. Moreover, the effective growth will lead the company to increase its revenue.
• As revenue continued to increase, the company initiated a strategy to develop new spaces. Ed, the vice president of the company, was in charge to design the newly expanded facility.
• OMC has a water meter specialization in assembling, testing and repairing, and the company’s product offers a new technology at a time.
• However, the new expansion strategy did not prove to be more effective and efficient but with the right number of employees, the company achieves its targets.
• The company was purchased by its larger competitors in 1998. Therefore, the board members decided to pursue Lean manufacturing culture in the organization.
• Orlando’s location was designated to check their first test run under the lean manufacturing strategy.
• Ed was in charge as a lean champion to design and implement changes in a time frame of 9-week.
• The basic purpose of Ed is to involve employees in the implantation process by holding an effective meeting. The objective of involving the employees is to generate better results by collaboration, commitment, responsibility, and loyalty. The company also provides the opportunity for lean training and constant management of the project to its employees and provide requirement to meet deadlines.
• The lean manufacturing strategy was so successful that the corporation decided to showcase the company for other sister companies.
• The mission of the lean showcase is to empower and motivate the employees to work effectively and efficiently. Even hourly employees were given the chance to lead the tours and give presentations on lean manufacturing to Vice President, to drive better results.
• Due to the tremendous success of the organization, the corporation decided to relocate four products from another sister facility to the company in 2001.
• The relocation strategy resulted in rapid growth, which led the company to face many challenges in the future. However, the new project faced delays in the deadlines due to many reasons such as Lack of documentation from OMC’s sister company, and technical inefficiency due to traditional technology. Therefore, the company should initiate a strategy to increase its technical skills and expertise by advancement in technology, to produce the new product effectively.
• Moreover, the management of the company should focus on solving the technical issues. However, technical inefficiencies failed to address people's issues that create conflicts and problem during the change process. Due to these issues, the lean culture of the organization gradually destroyed.
• Presently, the company is facing many problems and challenges such as high labor costs, increased manufacturing costs, high rate of customers’ complaints, low employee morale, high manufacturing costs, and different structure of corporate levels.
• Moreover, the corporate Head office orders the company to overcome and improve the issues in the 3-month time frame.
SYMPTOMS
• Lack of appropriate qualifications
• Low levels of loyalty and commitment
• High turnover rate
• High absenteeism rate of 50 absences each month.
• High manufacturing costs and high rate of customers’ complaints
• Lack of training and development facility
• Lack of technical skills and expertise
• Team culture suffering
PROBLEM STATEMENT
Orlando metering company (OMC) faced some technical challenges and issues during the integration of the new product strategy. The challenges included lean manufacturing culture, employees’ issues, lack of technical skills and expertise and conflicts in team culture of the organization. As a result, the lean culture and team based structure are weakened. Therefore, the company should propose an effective strategy to rebuild its lean culture and team-based structure within the organization, in order to generate positive results and increase its revenue and profits in the future.
Orlando Metering Company Case Solution
COMPANY’S ANALYSIS
Organization Goal and Strategy
OMC was purchased by its competitor in 1998. As a result, the board members decided to pursue Lean manufacturing culture in the organization. Ed, the vice president of OMC, decided to design and implement lean manufacturing in a timeframe of 9-week. The basic purpose to implement the lean manufacturing is to improve material handling, manage inventory costs, lower manufacturing costs, improving quality, scheduling, and personnel, to gain customers’ satisfaction...................
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