Schuzworlds Shanghai Production Facility - Case Study Example

Schuzworlds Shanghai production facility Schuzworlds Shanghai production facility Operations at the Schuzworlds Shanghai productionfacility is based on four principles, which are aimed at increasing the efficiency of the workers. The first principle states that in management, you should substitute the rule of the thumb work methods with methods based on systematic research of jobs. This means that the methods that are to be used in performing particular work should not be based on approximations or assumption, but rather on methods that have been proven to work. The second principle states that the management should scientifically pick, instruct, and develop every employee to perform his work perfectly rather than inactively leave them to coach themselves. The third principle is that managers at the facility should work together with employees to make certain that the scientifically developed techniques are being followed. The fourth principle states that the work should be divided uniformly among managers and employees so that management can apply the scientific management principles in planning the job and the employees can then perform the job (Jones, 2000). One of the ways in which Schuzworlds Shanghai production facility can improve is through the performance standards. The work allocated to employees was done using thumb rule or rough approximations on the amount of work that a worker could do (Wilson, 2010: 105). Manager can bring their idea of time and motion studies, which must aim at determining with accuracy the amount of work that an individual could do in a day or the highest quality possible output that the workers can give, this made it possible to compare the efficiency of one worker with another (Jones, 2000). This trend should continue in that the facility ought to be keen in determining the optimal levels of output that their employees can give and therefore putting in place measures to ensure that the workers reach those levels of performance. It is significant that the shanghai production facility can adapt the differential piece wage system that was first brought up by Taylor in his scientific management theory has also found its place in modern business organizations. This is because an efficient worker was not motivated to put extra effort in his work since he gained nothing from the extra effort. The differential piece wage system encouraged a standard output to be fixed which every employee is required to attain. After fixing the standard output, the managers then set two different wages where one is a low wage, which will be paid to workers who do not reach the required minimum output, and high output, which will be paid to individuals who exceed the minimum set standards. For instance, assuming that, through scientific methods, the standard output has been set at 12 units; the management then sets a lower wage of individuals who do not achieve that amount at $6 per unit and a higher wage for individuals who exceed the set standard at $10. If a low performing individual manages to finish only 9 units per day, the amount that will be taken home is 9 * 6 =54 dollars. The high performing individual who produces 14 units will take home 14*10= 140 dollars. In the current business environment, this trend continues in the form of commission and targets where shanghai production facility employees are hired on the performance basis, and the security of their tenure is based on their ability to produce results. In addition, the top performing employees are rewarded with promotions, educational grants or other forms of monetary rewards. This motivates other workers to put more effort in their work in order to meet the targets that have been set for them or to exceed them in order to receive the benefits that accrue to the high performing workers (Jones, 2000). Shanghai production facility can locate or identify functional foremanship where eight supervisors are supposed to supervise the workers since one supervisor cannot be an expert in all fields to supervise all the workers. These 8 supervisors are divided into two categories, planning level supervisors and the factory level supervisors. At the planning level, Shanghai production facility should identify the following foremen; time and cost clerk who was the supervisor in charge of the using scientific methods to determine the standard time that is required to complete a set amount of work and the cost that goes into completing that work. The route clerk is tasked with the responsibility of ensuring that the workers follow the exact route that a product is supposed to follow from when it is in the form of raw materials to the finished product (Jones, 2000). The discipline clerk in the planning level of an organization has the responsibility of ensuring discipline within the organization and ensures problems of absenteeism in the organizations are dealt with. The instruction card clerk has the responsibility of giving instructions to workers regarding how a certain job needs to be done. On the doing level in an organization, the firm can identify four supervisors. Gang boss is responsible for the setting up the machines and tools; in addition, he is also responsible for the direct supervision of the workers working with those machines. Speed boss is responsible for maintaining the tempo and speed of employees to ensure targets are met. Repair boss is the supervisor who is responsible for ensuring repair and maintenance of the machines that are used in the organization; in addition, the repair boss is also responsible for the supervision of the people repairing those machines (Jones, 2000). Inspector boss is the supervisor who is tasked with the responsibility of ensuring the quality of the production process. This division of labor exist up to date although in a more diverse and complex manner. In the modern organizational setting, each part in the production process has someone who is in charge of it, for instance, quality assessment department in organisations, which is headed by quality assessment manager, is responsible for ensuring the production process is up to the set standards and the products that are produced on the possible highest level of quality. Another aspect of that Shanghai production facility needs to adopt is digital or new Taylorism. This aspect of management theory is concerned with maximizing efficiency by standardizing and reutilizing tools and methods that are necessary for the performance of a specific job; it involves use of technology to supervise workers and make sure they are using the tools and techniques at optimal levels (Jones, 2000). Some of the distinguishing characteristics of digital Taylorism is that it is mechanistic, rigid, flexible and precise; this means that the management breaks down the whole process of production in to several parts and then standardizes the procedure that is to be followed in each of the parts. The workers are then required to follow the exact procedure as set out by the management in a machine-like manner. The strongest point of digital Taylorism is that it increases the level of precision since all the workers are operating in a predetermine way, therefore, increasing predictability and consistency while at the same time minimizing chances of error. For instance, Shanghai production facility can use surveillance to monitor employees and ensure they perform all the tasks in time (Jones, 2000). Recommendations for Shanghai production facility In a bid to increase the company’s profits, the company management decided to purchase and install new boilers to supply the main distillery with enough process stem from July to December the time when the company is not in operation. After careful review of all the information and equipment required installing the new boiler, the project planner and engineer believed that the information available had to ensure effective installation of the boiler without problems. To address significant performance issues, all departments should work in a synchronizing pattern and perform all their necessary functions in time and within the boundaries of the plan. Since they are working towards the same direction and some of the departments often operate independent of one another, the significance of the operations department is seen as it coordinates them together for the materialization of organizational goals. The assessment of the organization’s resources, whether monetary or otherwise, makes it possible for them to be used effectively. An effective operations management makes this possible and contributes to continued profitability in the end It is significant to note that during the maintenance period, the idle machines should be shut down since they rely on low-pressure process steam supplied from main boilers in the factory. The company needs to ensure that the distillery operates continuously without shut down because the existing alcohol prices on the market means that continuous operation of distillery provides a potential ground for increasing the firm’s profit margins Reference Jones, O. (2000). Scientific management, culture, and control: A first-hand account of Taylorism in practice. Human Relations, 53(5): 631-653. Read More